Jamestown Analysis: Why do the SBA beneficial ownership changes matter?

investor profile

March 25, 2025

by an investor from Northwestern University in Boulder, CO, USA

In response to an executive order, the SBA has drastically changed their beneficial ownership requirements, effectively excluding foreign nationals. We've seen a lot of confusion around these changes, both from searchers and lenders - there's gray area and room for interpretation in the published guidelines.

We've shared some analysis aiming to clarify these changes, and help searchers build cap tables that won't fail at the financing hurdle!

https://tinyurl.com/e74m7zmx

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commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
I would hesitate for anyone to try and interpret the guidelines at this point. Evan NAGGL, the association that represents SBA lenders with the SBA, has told lenders to hold off on interpreting the changes and there is mixed feedback coming out of the SBA. Some of the language in the order is slightly contradictory. Until the SBA offers clear guidance on the changes, which has been requested, I would hold off trying to do anything. I have spoken with numerous of our SBA lending partners, and at this point they are holding off doing anything with non-US based owners, even if they have a minority ownership interest, due to the confusion.
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