SBA loan basics
Short answer
Yes, generally, the primary owners of the business must be U.S. citizens or lawful permanent residents. This requirement ensures that the benefits of the SBA program are directed to individuals with a vested interest in the U.S. economy.
The SBA requires that the business be owned and controlled by U.S. citizens or lawful permanent residents (green card holders). If a business has multiple owners, those applying for the loan and those owning 20% or more must meet these criteria.
A business is owned 60% by a U.S. citizen and 40% by an individual holding a temporary work visa. The business would likely be ineligible for an SBA 7(a) loan unless the 40% owner becomes a lawful permanent resident.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Policy Notice 5000-876441 - Citizenship and Residency Requirements
Procedural Notice 5000-876626 - Revised Applicant Ownership, Citizenship and Residency
SOP 50 10 - Lender and Development Company Loan Programs
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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