For SBA lenders
Short answer
The applicant business must be at least 51% owned by U.S. citizens or lawful permanent residents, or individuals legally residing in the U.S. who intend to become permanent residents.
SBA policy requires that the small business applying for a 7(a) loan be controlled and primarily owned by U.S. citizens or lawful permanent residents. This ensures that the benefits of the program accrue to those with a vested long-term interest in the U.S. economy.
A business with three owners has 40% owned by a U.S. citizen, 30% by a lawful permanent resident, and 30% by a foreign national with a valid work visa. This business is eligible as 70% is owned by citizens/permanent residents, meeting the 51% threshold.
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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