For SBA lenders
Short answer
The lender must verify the owner's lawful permanent resident status by obtaining a copy of the Permanent Resident Card (Form I-551) and ensuring it is current and valid.
SBA rules require that all owners of 20% or more who are not U.S. citizens must be lawful permanent residents. Lenders must obtain and verify a valid Permanent Resident Card (Form I-551) for these individuals to confirm their eligibility for SBA loan programs.
A lender is processing a $1,000,000 7(a) loan for a business where a 30% owner is a lawful permanent resident. The lender must obtain a clear copy of the owner's current Form I-551, cross-reference the name and expiration date, and document its validity in the loan file.
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 2026-06-14. 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.
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