SBA loan basics
Short answer
Yes, at least one owner with 51% or more ownership in the business must be a U.S. citizen or a lawful permanent resident (green card holder) to qualify for an SBA 7(a) loan.
The SBA requires that the primary owner(s) of the small business be either U.S. citizens or lawful permanent residents. This ensures a connection to the U.S. economy and the ability to hold the borrower accountable. Other owners can be non-citizens/non-permanent residents, but the majority owner must meet this criterion.
A business with two owners, one a U.S. citizen (60% stake) and the other a non-U.S. resident (40% stake), would be eligible because the majority owner meets the residency requirement.
Insider move
Lenders must verify the citizenship or lawful permanent residency status of all owners holding 20% or more equity, especially the majority owner. This typically involves reviewing passports or green cards and completing specific SBA forms.
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
SBA Form 1919 - Borrower Information Form
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 & ownership
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