SBA 7(a) Q&A
Short answer
The SBA verifies the legal status of all owners by requiring documentation such as U.S. passports, birth certificates, or green cards (Form I-551) for U.S. citizens and Qualified Aliens.
All owners of 20% or more of the business must be U.S. citizens or Qualified Aliens. Lenders are required to collect specific documentation to confirm this status for each principal.
For an owner who is a U.S. citizen, the lender would require a copy of their U.S. passport. For a Qualified Alien, a copy of their Permanent Resident Card (green card) would be necessary.
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.
More on eligibility & ownership
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day