examples.json

[
  {
    "id": "occupancy",
    "title": "Investor apartments",
    "as_of": "2026-01-15",
    "program": "504",
    "sketch": "Borrower wants a 504 to buy a 20-unit apartment building they will rent out. They will not occupy. No operating company on site. Asking for 90% financing of the purchase.",
    "screen": "clock: SOP 50 10 8 | 8.1 not in force\nprogram: 504\ntype: ineligible | investor RE\noccupancy: no OC / investor RE \u2014 occupancy fail, not a size issue\nsize: not the kill\nproceeds: not the kill\ncitizenship: not the kill\nfranchise: none in sketch\n\ndraft_hard_stop: {\"result\": \"fail\", \"codes\": [\"OCCUPANCY\", \"INELIGIBLE_TYPE\"]}\n\nretrieved (in force on as_of):\n[13 CFR 120.131 | 2003-08-28 | ecfr-13-120]\nOccupancy of the Project. If the Project is an existing building, the Borrower (Operating Company) must occupy at least 51 percent of the Rentable Property. If the Project is new construction, the Borrower must occupy at least 60 percent of the Rentable Property. A Project that is investor real estate with no Operating Company on site, rented out and not occupied by the Borrower, does not meet occupancy. Passive rental of apartments is not an eligible 504 Project.\n\n[13 CFR 120.120 | 2003-08-28 | ecfr-13-120]\nA Borrower must use 7(a) and 504 loan proceeds for a sound business purpose approved by SBA. 504 proceeds are for long-term fixed assets: land, buildings, and long-life equipment. Working capital, payroll, inventory, and marketing are 7(a) uses, not 504. A 504 with proceeds of payroll and inventory only, and no real estate or long-life equipment, is an ineligible use of proceeds.\n\n[SOP 50 10 8 | 2025-06-01 | sop-50-10-8]\nSOP 50 10 8 governs 7(a) and 504 origination for applications issued an SBA loan number from 2025-06-01 through 2026-09-30. Do not cite SOP 50 10 8.1 on a January 2026 file. Occupancy, use of proceeds, and ineligible types are in this SOP and in 13 CFR 120.\n\nDraft from TRACE board. Not the 7B. Not an SBA product. Does not speak for SBA.\nDoes not determine eligibility. Does not decide credit.\nA designated officer certifies the file. Not for applicants."
  },
  {
    "id": "wc-on-504",
    "title": "Working capital on 504",
    "as_of": "2026-01-15",
    "program": "both",
    "sketch": "Restaurant operator wants a 504 for $400k of inventory, payroll, and marketing. No real estate, no heavy equipment with 10-year life. They heard 504 has a better rate than 7(a).",
    "screen": "clock: SOP 50 10 8 | 8.1 not in force\nprogram: both\ntype: not an ineligible-type kill\noccupancy: not stated as a kill\nsize: not the kill\nproceeds: working capital is 7(a) not 504\ncitizenship: not the kill\nfranchise: none in sketch\n\ndraft_hard_stop: {\"result\": \"fail\", \"codes\": [\"USE_OF_PROCEEDS\"]}\n\nretrieved (in force on as_of):\n[13 CFR 120.120 | 2003-08-28 | ecfr-13-120]\nA Borrower must use 7(a) and 504 loan proceeds for a sound business purpose approved by SBA. 504 proceeds are for long-term fixed assets: land, buildings, and long-life equipment. Working capital, payroll, inventory, and marketing are 7(a) uses, not 504. A 504 with proceeds of payroll and inventory only, and no real estate or long-life equipment, is an ineligible use of proceeds.\n\n[13 CFR 120.131 | 2003-08-28 | ecfr-13-120]\nOccupancy of the Project. If the Project is an existing building, the Borrower (Operating Company) must occupy at least 51 percent of the Rentable Property. If the Project is new construction, the Borrower must occupy at least 60 percent of the Rentable Property. A Project that is investor real estate with no Operating Company on site, rented out and not occupied by the Borrower, does not meet occupancy. Passive rental of apartments is not an eligible 504 Project.\n\n[13 CFR 121.201 | 2023-03-17 | ecfr-13-121]\nSBA size standards (13 CFR 121.201), table effective March 17, 2023. NAICS 621210 Offices of Dentists: $9.0 million average annual receipts. Combined receipts of the concern and affiliates are measured under 13 CFR 121.104. A dental practice with $27 million combined receipts exceeds the standard and is other than small.\n\n[SOP 50 10 8 | 2025-06-01 | sop-50-10-8]\nSOP 50 10 8 governs 7(a) and 504 origination for applications issued an SBA loan number from 2025-06-01 through 2026-09-30. Do not cite SOP 50 10 8.1 on a January 2026 file. Occupancy, use of proceeds, and ineligible types are in this SOP and in 13 CFR 120.\n\nDraft from TRACE board. Not the 7B. Not an SBA product. Does not speak for SBA.\nDoes not determine eligibility. Does not decide credit.\nA designated officer certifies the file. Not for applicants."
  },
  {
    "id": "owner-user",
    "title": "Owner-user industrial",
    "as_of": "2026-01-18",
    "program": "504",
    "sketch": "Harbor Weld Works LLC (US citizen owners, no affiliates) will buy an 18,000 sf industrial building in Fontana through an EPC. The welding OC will occupy 100% of the building for operations. 50/40/10 with a TPL. Use of proceeds is the building purchase plus long-life welding equipment. Size is under the manufacturing standard. Tax returns and financials are not in the file.",
    "screen": "clock: SOP 50 10 8 | 8.1 not in force\nprogram: 504\ntype: not an ineligible-type kill\noccupancy: 100% OC stated\nsize: not the kill\nproceeds: not the kill\ncitizenship: not the kill\nfranchise: none in sketch\n\ndraft_hard_stop: {\"result\": \"pass\", \"codes\": []}\n\nretrieved (in force on as_of):\n[13 CFR 120.120 | 2003-08-28 | ecfr-13-120]\nA Borrower must use 7(a) and 504 loan proceeds for a sound business purpose approved by SBA. 504 proceeds are for long-term fixed assets: land, buildings, and long-life equipment. Working capital, payroll, inventory, and marketing are 7(a) uses, not 504. A 504 with proceeds of payroll and inventory only, and no real estate or long-life equipment, is an ineligible use of proceeds.\n\n[13 CFR 120.131 | 2003-08-28 | ecfr-13-120]\nOccupancy of the Project. If the Project is an existing building, the Borrower (Operating Company) must occupy at least 51 percent of the Rentable Property. If the Project is new construction, the Borrower must occupy at least 60 percent of the Rentable Property. A Project that is investor real estate with no Operating Company on site, rented out and not occupied by the Borrower, does not meet occupancy. Passive rental of apartments is not an eligible 504 Project.\n\n[13 CFR 121.201 | 2023-03-17 | ecfr-13-121]\nSBA size standards (13 CFR 121.201), table effective March 17, 2023. NAICS 621210 Offices of Dentists: $9.0 million average annual receipts. Combined receipts of the concern and affiliates are measured under 13 CFR 121.104. A dental practice with $27 million combined receipts exceeds the standard and is other than small.\n\n[SOP 50 10 8 | 2025-06-01 | sop-50-10-8]\nSOP 50 10 8 governs 7(a) and 504 origination for applications issued an SBA loan number from 2025-06-01 through 2026-09-30. Do not cite SOP 50 10 8.1 on a January 2026 file. Occupancy, use of proceeds, and ineligible types are in this SOP and in 13 CFR 120.\n\nDraft from TRACE board. Not the 7B. Not an SBA product. Does not speak for SBA.\nDoes not determine eligibility. Does not decide credit.\nA designated officer certifies the file. Not for applicants."
  },
  {
    "id": "size",
    "title": "Dentists over size",
    "as_of": "2026-01-15",
    "program": "504",
    "sketch": "NAICS 621210 Offices of Dentists. Combined average annual receipts of the concern and three commonly owned affiliates are $27 million.",
    "screen": "clock: SOP 50 10 8 | 8.1 not in force\nprogram: 504\ntype: not an ineligible-type kill\noccupancy: not stated as a kill\nsize: NAICS 621210 receipts $27M > $9M standard (13 CFR 121.201) \u2014 fail SIZE\nproceeds: not the kill\ncitizenship: not the kill\nfranchise: none in sketch\n\ndraft_hard_stop: {\"result\": \"fail\", \"codes\": [\"SIZE\"]}\n\nretrieved (in force on as_of):\n[13 CFR 121.201 | 2023-03-17 | ecfr-13-121]\nSBA size standards (13 CFR 121.201), table effective March 17, 2023. NAICS 621210 Offices of Dentists: $9.0 million average annual receipts. Combined receipts of the concern and affiliates are measured under 13 CFR 121.104. A dental practice with $27 million combined receipts exceeds the standard and is other than small.\n\n[13 CFR 120.120 | 2003-08-28 | ecfr-13-120]\nA Borrower must use 7(a) and 504 loan proceeds for a sound business purpose approved by SBA. 504 proceeds are for long-term fixed assets: land, buildings, and long-life equipment. Working capital, payroll, inventory, and marketing are 7(a) uses, not 504. A 504 with proceeds of payroll and inventory only, and no real estate or long-life equipment, is an ineligible use of proceeds.\n\n[SOP 50 10 8 | 2025-06-01 | sop-50-10-8]\nSOP 50 10 8 governs 7(a) and 504 origination for applications issued an SBA loan number from 2025-06-01 through 2026-09-30. Do not cite SOP 50 10 8.1 on a January 2026 file. Occupancy, use of proceeds, and ineligible types are in this SOP and in 13 CFR 120.\n\nDraft from TRACE board. Not the 7B. Not an SBA product. Does not speak for SBA.\nDoes not determine eligibility. Does not decide credit.\nA designated officer certifies the file. Not for applicants."
  }
]