SBA loan basics
Short answer
SBA 7(a) loan applicants must generally be U.S. citizens or lawful permanent residents (Green Card holders).
All individuals who own 20% or more of the applicant business, and any other key management personnel, must be either U.S. citizens or lawful permanent residents. Other non-citizens may be eligible under specific circumstances, such as being a refugee or asylee.
A business owned 50/50 by two partners, one a U.S. citizen and the other a lawful permanent resident with a Green Card, would meet the citizenship requirements. If one owner was on a temporary work visa, they might not be eligible.
Insider move
Lenders must verify the citizenship or legal residency status of all key principals. This often involves checking documentation like passports, birth certificates, or Green Cards, as this is a fundamental eligibility 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 2026-06-14. 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.
Terms in this answer
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