For SBA lenders
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.
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.
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.
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.
More on citizenship/residency
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day