SBA loan basics
Short answer
Yes, there are restrictions on who can own a business applying for an SBA 7(a) loan, primarily concerning citizenship, residency, and character requirements for all principal owners.
All principal owners (generally 20% or more ownership) of the applicant business must be U.S. citizens or lawful permanent residents. Additionally, owners must meet character requirements, meaning they cannot have certain felony convictions or be currently incarcerated or on probation. The SBA also reviews potential issues like prior federal debt defaults.
A business owned 60% by a U.S. citizen and 40% by a lawful permanent resident (Green Card holder) would be eligible. However, if a business is majority-owned by a foreign national without a green card, it would generally not qualify for an SBA 7(a) loan.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
SBA Form 1919 - Borrower Information Form
Policy Notice 5000-876441 - Citizenship and Residency Requirements
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 who qualifies
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