SBA Loan Eligibility Update for Legal Non-Residents?

searcher profile

January 22, 2026

by a searcher from The University of Chicago - Booth School of Business in Rochester Hills, MI, USA

It appears the SBA is no longer approving loans for legal non-residents and is now requiring at least 95% ownership by a U.S. citizen or permanent resident. Has anyone else heard this or have insight into whether this is accurate?
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commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
Yes, this is accurate. The SBA changed the rules last year, initially requiring all owners to be 100% US Citizens or permanent green card holders, which also included investors. In December they changed the rule to state you can have up to 5% of the equity owned by non-US citizens but they cannot be active in the business. I hope this helps. If you have additional questions you can reach me here or directly at redacted
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Reply by a searcher
from Massey University in Houston, TX, USA
New update - from march 2026, 100% must be US citizens, not even resident green card holders eligible.
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