For SBA lenders
Short answer
No, generally only U.S. citizens or lawful permanent residents (Green Card holders) are eligible to own 51% or more of an SBA 7(a) loan applicant. Other visa types, such as E-2 or H-1B, do not confer eligibility for majority ownership.
SBA policy explicitly states that a business is eligible for a 7(a) loan only if U.S. citizens or lawful permanent residents own at least 51% of the equity. Individuals with non-immigrant visas (e.g., E-2, H-1B, L-1, O-1) are generally not considered eligible for majority ownership as they are not lawful permanent residents. They may be minority owners if the majority owners meet the citizenship/residency requirements.
An applicant for a $750,000 7(a) loan holds an E-2 investor visa and owns 100% of the business. The lender would deem this business ineligible because the E-2 visa holder is not a lawful permanent resident and therefore cannot be the majority owner.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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