SBA loan basics
Short answer
Yes, generally, all owners of 20% or more of the small business applying for an SBA 7(a) loan must be either U.S. citizens or Lawful Permanent Residents (Green Card holders).
SBA policy requires that the small business concern be owned and controlled by U.S. citizens or Lawful Permanent Residents. If the applicant is not a U.S. citizen, they must reside legally in the U.S. and provide valid documentation, such as a Green Card, to prove their Lawful Permanent Resident status. Certain 'Qualified Alien' statuses may also be eligible if residing in the U.S.
A business owned 60% by a U.S. citizen and 40% by a Lawful Permanent Resident would be eligible. However, if the 40% owner held only a temporary work visa, the business would be ineligible for the loan.
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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