SBA loan basics
Short answer
No, not all owners need to be U.S. citizens, but at least one owner who owns 20% or more of the business must be a U.S. citizen or a Qualified Alien. All other owners who own 20% or more must also be U.S. citizens or Qualified Aliens.
For SBA 7(a) loans, at least one individual owning 20% or more of the equity must be a U.S. citizen or Qualified Alien. All other owners of 20% or more must also be either U.S. citizens or Qualified Aliens. The SBA defines Qualified Alien as someone lawfully admitted for permanent residence (Green Card holder) or specific other immigration statuses.
If a business has three owners, each with 33% ownership, all three must be U.S. citizens or Qualified Aliens. If one owner has 70% and two others have 15% each, only the 70% owner needs to be a U.S. citizen or Qualified Alien, provided the 15% owners are not required to guarantee the loan and do not create affiliation.
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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