{"ok":true,"canonical_url":"https://dealroom.so/glossary/residency-requirement","api_url":"https://dealroom.so/api/public/glossary/residency-requirement","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"residency-requirement","term":"Residency Requirement","group":"People and paperwork","definition":"This SBA rule states that all owners of 20% or more of the borrowing business must be U.S. citizens or Qualified Aliens residing in the U.S. It's a fundamental eligibility criterion for the loan.","what_it_means":"If you are buying a business with an SBA 7(a) loan, you and any other owner holding 20% or more equity must satisfy this requirement. You'll need to provide documentation like a U.S. passport, birth certificate, or Form I-551 (Green Card) to prove your status. No exceptions for non-residents.","url":"https://dealroom.so/glossary/residency-requirement","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"},{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"residency-verification","term":"Residency Verification","url":"https://dealroom.so/glossary/residency-verification"},{"slug":"qualified-alien","term":"Qualified Alien","url":"https://dealroom.so/glossary/qualified-alien"},{"slug":"form-i-551","term":"Form I-551","url":"https://dealroom.so/glossary/form-i-551"},{"slug":"key-principal","term":"Key principal","url":"https://dealroom.so/glossary/key-principal"}],"related_questions":[{"question":"Are there citizenship or residency requirements for SBA 7(a) loan applicants?","url":"https://dealroom.so/sba-loans/basics/are-there-citizenship-or-residency-requirements-for-sba-7-a-loan-applicants"},{"question":"Are there specific citizenship or residency requirements for SBA 7(a) loan applicants?","url":"https://dealroom.so/sba-loans/basics/are-there-specific-citizenship-or-residency-requirements-for-sba-7-a-loan-applicants"},{"question":"What are the citizenship or residency requirements for a 7(a) loan applicant?","url":"https://dealroom.so/for-lenders/questions/what-are-the-citizenship-or-residency-requirements-for-a-7-a-loan-applicant"},{"question":"What are the requirements for citizenship or residency for SBA 7(a) loan applicants?","url":"https://dealroom.so/sba-7a/questions/what-are-the-requirements-for-citizenship-or-residency-for-sba-7-a-loan-applicants"},{"question":"What specific residency requirements must a non-citizen owner meet for 7(a) loan eligibility?","url":"https://dealroom.so/for-lenders/questions/what-specific-residency-requirements-must-a-non-citizen-owner-meet-for-7-a-loan-eligibilit"},{"question":"What are the U.S. citizenship or residency requirements for an SBA 7(a) loan applicant?","url":"https://dealroom.so/sba-loans/basics/what-are-the-u-s-citizenship-or-residency-requirements-for-an-sba-7-a-loan-applicant"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Residency Requirement","url":"https://dealroom.so/glossary/residency-requirement","source_type":"DealRoom Data"}}