SBA loan basics
Short answer
Yes, generally, all owners of 20% or more of the business must be U.S. citizens or Lawful Permanent Residents to be eligible for an SBA 7(a) loan.
SBA rules require that the applicant business be at least 51% owned by U.S. citizens or Lawful Permanent Residents. Specifically, all owners holding 20% or more of the equity in the applicant business must meet this citizenship or residency requirement to be eligible for a personal guarantee.
If a business has two owners, one a U.S. citizen with 60% ownership and the other a non-U.S. citizen without permanent residency owning 40%, the business would not be eligible because the 40% owner does not meet the residency requirement.
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.
More on citizenship & residency
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