Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

A business primarily engaged in which of the following is not eligible for SBA 7(a) loans?

1. Real estate development

2. Political or lobbying activities

3. Business consulting

4. Hospitality services

The correct answer is: Political or lobbying activities

The eligibility for SBA 7(a) loans is determined by the nature of the business's activities. A business that is primarily engaged in political or lobbying activities does not qualify for these loans because the SBA is focused on supporting businesses that have a direct impact on job creation and economic development rather than those involved in political influence or advocacy. The SBA's programs are intended to foster economic growth and support industries that provide tangible services or products, which further the economy. In contrast, businesses involved in real estate development, business consulting, and hospitality services fall within the realm of eligible activities for SBA loans since they engage in economic transactions and can contribute to job creation. These sectors are seen as essential to the overall economy, making them suitable candidates for the support provided by the SBA. This distinction underscores the SBA's commitment to facilitating financial resources for businesses that promote economic development rather than political agendas.