SBA loan basics
Short answer
Yes, all owners of 20% or more of the applicant business must be U.S. citizens or Qualified Aliens (legal permanent residents).
The SBA requires that individuals owning 20% or more of the applicant business be U.S. citizens or Qualified Aliens. This ensures that the benefits of the program are directed towards individuals with a clear legal status in the United States, who are expected to be present and operate the business.
A business has three owners: one U.S. citizen with 60% ownership, and two non-U.S. citizens, one with 25% and one with 15%. The 25% owner must be a Qualified Alien; the 15% owner does not need to be.
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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