{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/can-an-individual-with-deferred-action-for-childhood-arrivals-daca-status-be-an-eligible-p","api_url":"https://dealroom.so/api/public/questions/can-an-individual-with-deferred-action-for-childhood-arrivals-daca-status-be-an-eligible-p","question":"Can an individual with Deferred Action for Childhood Arrivals (DACA) status be an eligible personal guarantor for a 7(a) loan?","topic":"Citizenship/residency","audience":"lender","bot_mode":"lender","short_answer":"No, an individual with DACA status is generally not eligible to be a personal guarantor for an SBA 7(a) loan because DACA does not confer \"lawful permanent resident\" or other qualified alien status as defined by the SBA.","rule":"SBA rules for individual eligibility require U.S. citizenship or specific non-citizen statuses, primarily lawful permanent residency (Green Card holder). While DACA provides temporary protection from deportation and work authorization, it does not grant the necessary immigration status for direct SBA loan program participation as a borrower or required guarantor.","example":"A business with two owners applies for a $600,000 7(a) loan. One owner is a U.S. citizen, the other has DACA status. The DACA holder would not be eligible to be a required personal guarantor. The lender would need to ensure the U.S. citizen owner's guaranty is sufficient or seek other eligible guarantors.","what_lenders_check":"Lenders must verify the exact immigration status of all owners and guarantors. Misinterpreting temporary statuses like DACA as meeting permanent residency requirements is a common error that can lead to an ineligible guaranty and substantial issues during a purchase request.","required_facts":["DACA status","Lawful permanent resident","Guarantor eligibility","Immigration status"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","Policy Notice 5000-876441 - Citizenship and Residency Requirements","Procedural Notice 5000-876626 - Revised Applicant Ownership, Citizenship and Residency"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"Policy Notice 5000-876441 - Citizenship and Residency Requirements","url":"https://www.sba.gov/sites/default/files/2026-02/Policy%20Notice%205000-876441%20-%20Update%20to%20Citizenship%20and%20Residency%20Requirements%20and%20Recission%20of%20PN%2050000-872050.pdf"},{"title":"Procedural Notice 5000-876626 - Revised Applicant Ownership, Citizenship and Residency","url":"https://www.sba.gov/sites/default/files/2026-02/Procedural%20Notice%205000-876626%20-%20Revised%20Applicant%20Ownership%20Citizenship%20and%20Residency%20%20OFA%202.11.pdf"}],"related_questions":[{"question":"How does the lender verify the eligibility of an applicant who is a lawful permanent resident, including specific documentation requirements?","url":"https://dealroom.so/for-lenders/questions/how-does-the-lender-verify-the-eligibility-of-an-applicant-who-is-a-lawful-permanent-resid"},{"question":"If a key management employee who is not an owner is a foreign national, does this affect SBA 7(a) loan eligibility?","url":"https://dealroom.so/for-lenders/questions/if-a-key-management-employee-who-is-not-an-owner-is-a-foreign-national-does-this-affect-sb"},{"question":"For a business owned by a trust, what citizenship and residency requirements apply to the trustee for 7(a) eligibility?","url":"https://dealroom.so/for-lenders/questions/for-a-business-owned-by-a-trust-what-citizenship-and-residency-requirements-apply-to-the-t"},{"question":"How does a lender verify the lawful permanent resident status of a non-citizen applicant?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-the-lawful-permanent-resident-status-of-a-non-citizen-applicant"},{"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":"Can a non-U.S. citizen individual with an E-2 investor visa be an eligible applicant for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/can-a-non-u-s-citizen-individual-with-an-e-2-investor-visa-be-an-eligible-applicant-for-a-"}],"related_terms":[{"term":"Personal Guarantor","url":"https://dealroom.so/glossary/personal-guarantor"},{"term":"Lease with an option to purchase","url":"https://dealroom.so/glossary/lease-with-an-option-to-purchase"},{"term":"For-Profit Status","url":"https://dealroom.so/glossary/for-profit-status"},{"term":"Principal (Individual)","url":"https://dealroom.so/glossary/principal-individual"},{"term":"Deferred","url":"https://dealroom.so/glossary/deferred"},{"term":"Guarantor","url":"https://dealroom.so/glossary/guarantor"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/for-lenders/questions/can-an-individual-with-deferred-action-for-childhood-arrivals-daca-status-be-an-eligible-p","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}