SBA loan basics
Short answer
Yes, a business can apply for an SBA 7(a) loan even if some owners are not U.S. citizens, provided they are lawful permanent residents of the U.S.
All owners of 20% or more of the equity in the applicant business must be U.S. citizens or Lawful Permanent Residents (Green Card holders). Owners who are not U.S. citizens or Lawful Permanent Residents are generally not eligible to own 20% or more of the equity in the applicant business.
A business has three owners: one U.S. citizen (50%), one lawful permanent resident (30%), and one individual on a work visa (20%). This business would be eligible, as the owners with 20% or more equity are either citizens or lawful permanent residents.
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 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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 & citizenship
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