EBT Application for Business: What Most People Get Wrong

So, you're thinking about accepting EBT at your shop. Honestly, it’s a smart move. For a lot of small grocers, convenience stores, or even specialty meat markets, getting that FNS permit is basically the difference between thriving and just barely getting by.

But let's be real. The government doesn't exactly make it easy to understand the EBT application for business process. You go to the USDA website and it's a sea of acronyms—FNS, SNAP, Criterion A, Criterion B. It’s a lot.

I’ve seen business owners get rejected not because they weren't eligible, but because they didn’t realize the USDA actually sends people to count the number of cereal boxes on their shelves. Seriously. If you’re short by just one "stocking unit" of bread, they can deny you.

Does Your Store Actually Qualify?

Most people think if they sell food, they’re in. Not quite. The USDA has two ways to measure if you’re a "retail food store."

First, there's Criterion A. This is the inventory rule. You need to carry at least 36 staple food items at all times. Specifically, three varieties in each of the four staple categories: vegetables/fruits, meat/poultry/fish, dairy, and breads/cereals.

And here is the kicker: you need at least three stocking units for each variety. If you have three types of bread, you need at least three loaves of each type on the shelf.

Then there’s Criterion B, which is usually for specialty shops. Think butcher shops or fish markets. If more than 50% of your total gross sales come from staple foods, you can qualify even if you don't have a massive variety of bread or veggies.

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The New 2026 Rules You Need to Know

Things changed recently. As of early 2026, there's a new "Food Restriction Waiver" floating around. In states like Indiana and Louisiana, the rules for what customers can buy have tightened significantly.

You’ve probably heard the rumors. It’s true: in those states, SNAP benefits can no longer be used for soft drinks, energy drinks, or candy.

As a business owner, this means your POS system has to be smart enough to block those items during an EBT transaction. If you’re applying now, the USDA might ask for a "self-attestation" form proving you’ve updated your software to handle these restrictions. Ignoring this is a fast track to a compliance violation.

The Application Walkthrough

The actual EBT application for business starts with a Login.gov account. Do not—I repeat, do not—try to use a third-party service that charges you to "file" this. The USDA application is free.

You’ll need:

• Social Security numbers for all owners.
• A copy of your current business license (health permit, sales tax permit, etc.).
• Photo IDs for all partners or officers.
• Last year’s gross sales figures (if you’re already open).

Once you submit the online form, you have a 30-day window to get your supporting documents to the FNS. If you miss that window, they delete your application and you have to start over from scratch. It’s annoying.

Why Applications Get Denied

The number one reason for denial? Business integrity issues.

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If any of the owners have been convicted of a felony involving fraud or money laundering, the USDA is probably going to say no. They also look at "trafficking" history. If you bought a store from someone who was banned for EBT fraud, you might have to prove you have absolutely no connection to the previous owner.

Another common pitfall is the site visit.

The USDA will send an inspector. They might not tell you when. They’ll take photos of your inventory, your storefront, and your checkout area. If your shelves are bare that day, you're in trouble. I always tell people to overstock their staple foods right before they expect that visit.

Choosing Your Equipment

Once you get that "FNS Permit" in the mail, you aren't done. You need a way to swipe the cards.

Unless you are a farmers' market or a non-profit, the government isn't going to give you the machine for free. You have to find a third-party processor. Some big names like Square or Clover can handle EBT, but they often require an extra app or a specific monthly subscription, sometimes ranging from $20 to $50 a month.

Shop around. Some processors charge a flat fee per transaction, while others have a monthly "unlimited" plan. If you're doing high volume, that flat monthly fee usually saves you a ton of money.

Practical Next Steps

1. Audit your shelves tonight. Count your "stocking units." Do you have three different types of milk? Three different types of meat? If not, go to a wholesaler and fix it before you even open the website.
2. Verify your license. Make sure your business license matches the name on your application exactly. Typos cause delays.
3. Contact your POS provider. Ask them specifically if their hardware is "EBT-ready" and if they support the 2026 sugar-sweetened beverage restrictions.
4. Gather IDs. Scan the driver's licenses and Social Security cards for every owner listed on your business filing. Having these ready as PDFs will save you hours of frustration.
5. Submit via FNS.gov. Use the official portal to start your application and keep your confirmation number in a safe place.