SBA loan basics
Short answer
Key individuals, including all owners of 20% or more, must generally be U.S. citizens or lawful permanent residents to be eligible for an SBA 7(a) loan.
The SBA requires that all owners of 20% or more of the small business be either U.S. citizens or lawful permanent residents (Green Card holders). This ensures that the principals of the business have a permanent stake and presence in the U.S. Lesser ownership percentages may be allowed for non-citizens if they are not considered 'key' to the business.
A partnership with two owners, one a U.S. citizen (60% ownership) and the other a lawful permanent resident (40% ownership), would meet the citizenship/residency requirement for an SBA 7(a) loan.
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.
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day