For SBA lenders
Short answer
Lenders verify status by obtaining specific government-issued documents, such as a U.S. passport, birth certificate, naturalization papers, or a Permanent Resident Card (Form I-551).
All individuals owning 20% or more of the applicant business must be U.S. citizens or lawful permanent residents. Lenders are required to collect and retain copies of supporting documentation to confirm this status for each relevant owner as part of their due diligence and eligibility review.
A lender processes a loan for a business with three owners, each holding 33%. For one owner who is a lawful permanent resident, the lender obtains a copy of their unexpired Permanent Resident Card (Green Card) and records its issuance and expiration dates in the loan file.
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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