For SBA lenders
Short answer
Each individual owning 20% or more of the applicant business must be a U.S. citizen, a U.S. non-citizen national, or a qualified alien with lawful permanent resident status.
Per SOP 50 10 and recent procedural notices, all owners with 20% or more equity in the applicant small business must meet specific citizenship or qualified alien residency requirements. This ensures that the primary beneficiaries of the SBA program are those with a vested interest and long-term legal standing in the U.S.
A business has three owners: Owner A (50%, U.S. citizen), Owner B (30%, U.S. permanent resident), and Owner C (20%, U.S. citizen). All three meet the requirement. If Owner C was a temporary visa holder, the loan would be ineligible.
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 2026-06-13. 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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