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 U.S. citizens or lawful permanent residents. There are limited exceptions for certain non-citizens.
The SBA requires that primary owners of a borrowing business have a strong tie to the U.S. and its economy. Lawful permanent residents must provide their Alien Registration Number. Certain non-citizens may be eligible if they can demonstrate legal presence and intent to become a permanent resident.
Maria, a lawful permanent resident with a green card, owns 30% of a business applying for an SBA loan. She meets the eligibility requirement by providing her Alien Registration Number. If she only had a temporary visa, she would likely 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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