SBA loan basics
Short answer
Yes, generally, all owners of 20% or more of the applicant business must be either U.S. citizens or lawful permanent residents (Green Card holders) to qualify for an SBA 7(a) loan.
SBA regulations require that owners of 20% or more of the equity in an applicant business must be U.S. citizens or non-citizen nationals, or aliens lawfully admitted for permanent residence. This ensures that the primary beneficiaries of federal loan guarantees have a vested, long-term interest and legal standing within the United States. Foreign nationals without permanent residency are generally ineligible.
A business has two owners: one is a U.S. citizen owning 60%, and the other is a lawful permanent resident owning 40%. This business would be eligible for an SBA 7(a) loan based on ownership. However, if the 40% owner had only a temporary visa, the business would be ineligible.
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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