SBA loan basics
Short answer
The business must be at least 51% owned by U.S. citizens or legal permanent residents. Non-citizens must reside legally in the U.S. and provide documentation of their alien registration status.
To be eligible, the small business must be controlled by U.S. citizens or lawful permanent residents. Non-U.S. citizens must possess a valid green card (Form I-551, Alien Registration Receipt Card) or equivalent documentation, demonstrating their legal permanent residency status in the United States. Other visa types are generally not sufficient for eligibility.
A business partnership has two owners, one a U.S. citizen owning 60% and the other a foreign national with an E-2 visa owning 40%. This business would not be eligible because the non-citizen is not a legal permanent resident. If the foreign national instead had a green card, it would be eligible.
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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