For SBA lenders
Short answer
Lenders must obtain specific documentation such as a U.S. Passport, Consular Report of Birth Abroad (Form FS-240), Certificate of Birth Abroad (Form FS-545), or Certificate of Citizenship (Form N-560/N-561).
SBA rules require U.S. citizenship verification for owners of 20% or more. For those born outside the continental U.S., specific documents are required to prove citizenship derived from birth in a U.S. territory or to U.S. parents abroad, ensuring eligibility.
A 30% owner for a $1M 7(a) loan was born in Puerto Rico. The lender requests a copy of their U.S. Passport. Alternatively, if born abroad to U.S. parents, the lender would accept a Consular Report of Birth Abroad to satisfy the citizenship verification requirement.
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 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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