SBA loan basics
Short answer
Yes, generally, all owners of 20% or more of the business must be U.S. citizens or Qualified Aliens residing in the U.S. and legally admitted for permanent residence.
The SBA requires applicants to meet specific citizenship or residency criteria to ensure accountability and alignment with the program's objectives for supporting U.S. small businesses. This applies to all individuals who own 20% or more of the equity in the applicant business.
If a business has three owners, each with 33% ownership, all three must be U.S. citizens or Qualified Aliens. If one owner is a foreign national without permanent residency, the business 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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