SBA loan basics
Short answer
Borrowers must be U.S. citizens or legal permanent residents. Non-citizens without permanent resident alien status are generally ineligible, but certain exceptions exist for foreign nationals with valid work visas who own less than 20% equity.
For any individual owning 20% or more of the small business, they must be a U.S. citizen or a Lawful Permanent Resident. For individuals owning less than 20%, they may be a foreign national with a valid work visa, provided a U.S. citizen or Legal Permanent Resident with at least a 20% ownership stake controls the business.
An entrepreneur with a green card (Lawful Permanent Resident) applies for an SBA 7(a) loan to buy a business. They own 100% of the company, and their status allows them to meet the SBA's citizenship/residency requirements.
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 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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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