SBA loan basics
Short answer
Generally, individuals who own 20% or more of the applicant business must be U.S. citizens or 'Qualified Aliens' to be eligible for an SBA 7(a) loan.
SBA rules require that all principals who own 20% or more of the applicant business must be either U.S. citizens or Qualified Aliens. Qualified Aliens include those with a green card, political asylum, or certain other legal statuses. This ensures that the primary decision-makers of the business have a legal right to reside and conduct business in the U.S.
If a business has two owners, one a U.S. citizen and the other holding a valid Green Card (permanent resident), both would be eligible if they meet all other criteria. However, if one owner is on a temporary work visa and owns 25% of the business, the business would likely be ineligible.
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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