For SBA lenders
Short answer
A business whose operations are primarily located in a foreign country is generally ineligible for an SBA 7(a) loan, as the SBA requires the business to be located and operate in the U.S. or its territories.
To be eligible, a small business must operate in the United States or its possessions and conduct its business in the U.S. for profit. Businesses that primarily derive revenue or conduct their core operations outside these areas are not eligible, with very limited exceptions for export-focused loans.
A company that manufactures goods in Mexico and only maintains a small sales office in Texas applies for a 7(a) loan. The lender would determine the business is ineligible because its primary operations (manufacturing) are not located in the U.S.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
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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