SBA Loan Citizenship Verification

investor profile

February 15, 2026

by an investor from Georgia Institute of Technology in USA

Question for SBA Lenders. SBA now requires US Citizenship - no "green cards". Where we, as a fund - need some clarity - is what about Trusts? Key rule we follow: * Not more than 20% ownership in the entity The grey area lies in if we have LP investors, which are Trusts, and how the SBA & bank will scrutinize: * Revocable Trust with a foreign grantor but US Citizen as Beneficiary * Irrevocable Trust with a foreign grantor but US Citizen as Beneficiary * Does citizenship of the Trustee matter?
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Reply by a searcher
from San Jose State University in San Jose, CA, USA
Not an expert in loan, but I was denied for SBA loan because my spouse is the "ultimate" non-US citizen beneficiary when we try to apply with Limited Partnership where our trust is an LP. I had to make the deal so that my spouse wasnt an financial interest holder at all.... FYI
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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
The SBA is going to look at who owns the trust as the ultimate owners of the business, not the beneficiaries. If the owners are foreign born, then it will not qualify. Sorry.
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