Any insights on how Non-USA Citizens can work within new SBA rules?

searcher profile

May 14, 2025

by a searcher from INSEAD in Lucerne, Switzerland

Hi, I am looking for ideas on or any insights in how Non-USA Citizens can work within new SBA rules to co-acquire SBA finanaced deals. Specifically how the operating agreement would work. Thank you
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commentor profile
Reply by a lender
from Sam Houston State University in 5324 Community Dr, Houston, TX 77005, USA
There is not a way around the rules. The owners and bank have to certify that there are no ineligible borrowers on the loan. Side agreements, etc. if found out will only result in major issues later (fines, jail time). Looking at other financing options is probably best.
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Reply by a searcher
from Parsons School of Design in Cuxhaven, Germany
Marcel, the new SBA rules are clear and strict: Only U.S. citizens, nationals, or lawful permanent residents can own any part of a business financed by an SBA loan. Even a tiny ownership stake by a non-citizen or non-LPR disqualifies the business from SBA eligibility. The old workaround of 51/49 ownership is gone; now, 100% U.S. citizen or LPR ownership is mandatory. There’s no legal workaround, and any attempt at side or silent agreements would be risky and could lead to severe consequences, including fines or worse. If you’re a non-U.S. citizen, the only way to participate in U.S. small business acquisitions is through non-SBA financing. You could partner with a U.S. citizen on non-SBA deals, or potentially act as an employee or advisor with a contractual agreement for compensation upon exit, but not as an official owner. Offer to Collaborate Marcel, as a German/American citizen myself, I’m uniquely positioned to bridge both worlds. If you’re interested in exploring non-SBA deal structures, cross-border acquisitions, or creative financing options that comply with U.S. regulations, I’d love to connect and see how we can collaborate. Let’s turn these new rules into an opportunity-maybe over a good coffee, or at least a virtual one (no SBA paperwork required). Let me know if you’d like to brainstorm together - sometimes, the best and most creative deals happen outside the box (and the SBA rulebook)! ___ Join 👉🏻 https://www.linkedin.com/newsletters/fund2flourish-7264000664869953536/ Monthly newsletter: insights, case studies, and entrepreneur stories in the trenches. Connect 👉🏻 https://www.facebook.com/kennethlbreeze Discover 👉🏻 https://www.facebook.com/BreezeBusinessConsulting
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