For SBA lenders
Short answer
Yes, U.S. citizens are eligible regardless of their country of residence, provided the business itself operates in the U.S. or its possessions.
SBA eligibility for owners is tied to U.S. citizenship or lawful permanent residency. A U.S. citizen does not need to reside in the U.S. to be eligible. However, the business receiving the loan must be located in and operate within the United States or its territories.
A U.S. citizen living in Canada wants to open a business in Miami, Florida. The citizen is eligible as an owner. The lender would verify the business's physical location and operations are within the U.S.
Insider move
Lenders must confirm the citizenship of all 20% or more owners and verify the physical location and operational base of the business. Distant owners may pose logistical challenges for guaranty and closing.
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
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.
More on citizenship/residency
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