Can Non-US Citizens Get SBA Loans? The Short Answer
Updated for 2025: As of March 1, 2025, the Small Business Administration (SBA) requires 100% U.S. citizen ownership for all SBA-guaranteed loans. This means non-US citizens — including Legal Permanent Residents (green card holders) — can no longer qualify for SBA loans.
This is a dramatic shift from previous policy. For decades, green card holders and certain other non-citizens could qualify for SBA financing. If you’re researching “can a green card holder get an SBA loan” or “SBA loan non-US citizen,” you’ll find plenty of outdated articles saying yes. That information is no longer accurate.
At GoSBA Loans, we’ve funded over $320 million across 126 SBA loans. We’ve seen this policy change impact real deals in our pipeline — qualified borrowers with strong financials who were suddenly ineligible. This article explains exactly what changed, why, and what your options are if you’re a non-citizen entrepreneur.
The Old Rules: How Non-Citizens Used to Qualify for SBA Loans
Before March 2025, the SBA’s Standard Operating Procedure (SOP 50 10) for the 7(a) lending program had a more inclusive approach to citizenship and immigration status. Here’s how eligibility used to work:
Legal Permanent Residents (Green Card Holders)
Under the previous SBA SOP, Legal Permanent Residents (LPRs) were fully eligible for SBA loans. Green card holders were treated similarly to U.S. citizens for lending purposes. They could:
- Own 100% of a business and qualify for SBA 7(a) and 504 loans
- Be a partner or co-owner in a business applying for SBA financing
- Serve as a guarantor on SBA loans
- Access the full range of SBA loan programs
The key requirement was that LPRs needed to provide their Permanent Resident Card (Form I-551) and demonstrate lawful permanent residency. Lenders would verify immigration status, but once confirmed, green card holders were eligible on the same terms as citizens.
Non-Citizen Nationals
Non-citizen nationals — individuals born in American Samoa or Swains Island who owe allegiance to the United States but are not citizens — were also eligible for SBA loans under the old rules.
Other Non-Citizens with Lawful Status
The previous SOP also provided pathways for certain other non-citizens. Individuals with specific visa categories (such as E-2 treaty investor visas or L-1 intracompany transfer visas) could potentially qualify, though with additional documentation requirements and lender scrutiny. In practice, most SBA lenders were cautious with visa holders, but the SBA’s own rules did not categorically exclude them if they had lawful status and the right to work in the United States.
The underlying principle was straightforward: if you were lawfully present in the United States and had the legal right to operate a business, you had a pathway to SBA financing.
What Changed: The New SBA Citizenship Requirement (March 2025)
In early 2025, the SBA implemented sweeping changes to its lending eligibility requirements as part of a broader policy shift under the Trump administration. The new rules, effective March 1, 2025, fundamentally altered who can access SBA-guaranteed loans.
The New Rule: 100% U.S. Citizen Ownership Required
The updated SBA Standard Operating Procedure now requires that all owners with 20% or greater ownership stake in the applicant business must be U.S. citizens. This is a hard requirement with no exceptions, waivers, or workarounds.
Here’s what this means in practice:
- Sole proprietors must be U.S. citizens
- All partners with 20%+ ownership must be U.S. citizens
- All members of an LLC with 20%+ ownership must be U.S. citizens
- All shareholders of a corporation with 20%+ ownership must be U.S. citizens
- Green card holders (LPRs) are no longer eligible, even if they’ve lived in the U.S. for decades
Executive Orders Driving the Change
This policy change stems from a series of executive orders issued in January and February 2025 that directed federal agencies to prioritize U.S. citizens in government programs. The SBA updated its Standard Operating Procedures to align with the administration’s policy directives on immigration and government benefits.
Key executive actions that influenced this change include:
- Executive Order on “Protecting the American Worker” — directed agencies to ensure federal programs prioritize American citizens
- Executive Order on “Securing Our Borders” — included provisions restricting non-citizen access to federal benefits and programs
- SBA Policy Notice — the SBA issued updated guidance to all 7(a) and 504 lenders requiring citizenship verification for all owners with 20%+ ownership
The SBA communicated these changes to its network of approved lenders through policy notices and updated SOP language, giving lenders a short window to adjust their processes before the March 1 effective date.
How This Affects Green Card Holders and LPRs
The impact of this SBA loan citizenship requirement on Legal Permanent Residents cannot be overstated. Let’s be direct about what this means:
If You’re a Green Card Holder Who Owns a Business
You cannot get an SBA loan. Even if you:
- Have lived in the United States for 20+ years
- Pay U.S. taxes and have a perfect credit score
- Own a thriving business with millions in revenue
- Have been pre-approved for an SBA loan before March 2025
- Are in the process of applying for U.S. citizenship
None of these factors matter under the new rules. If you are not a U.S. citizen and you own 20% or more of the business, the SBA loan application is ineligible. Period.
If You’re in a Partnership With a Non-Citizen
This is where things get especially painful. Imagine this scenario (which we’ve seen in our practice at GoSBA Loans):
Two partners want to buy a business together. One is a U.S. citizen. The other is an LPR with a green card. They planned on a 50/50 ownership split. Under the new rules, this deal is ineligible for SBA financing.
Even if the non-citizen partner reduces their ownership below 20%, lenders are scrutinizing these arrangements carefully. The SBA’s guidance makes it clear that restructuring ownership solely to circumvent the citizenship requirement is not an acceptable practice.
Deals in Progress That Were Affected
One of the most frustrating aspects of this change was the impact on deals already in the pipeline. We had borrowers who were weeks away from closing when the new rules took effect. Loans that had been approved, with signed letters of intent and completed due diligence, were suddenly ineligible.
The SBA did not provide a meaningful transition period or grandfather clause for applications already in process. Lenders were instructed to apply the new citizenship requirement to all loans not yet fully disbursed as of March 1, 2025.
What About Naturalized U.S. Citizens?
Here’s an important distinction: naturalized U.S. citizens are fully eligible for SBA loans.
If you were born in another country but have completed the naturalization process and hold U.S. citizenship, you are treated identically to natural-born citizens under the SBA’s rules. There is no distinction between naturalized and natural-born citizens for SBA lending purposes.
To qualify, you’ll need to provide:
- Your Certificate of Naturalization (Form N-550 or N-570)
- A U.S. passport (if available)
- Standard SBA loan documentation
If you’re currently an LPR considering naturalization, completing that process would restore your eligibility for SBA financing. However, the naturalization process typically takes 6-12 months or longer, so this isn’t an immediate solution.
Impact on Specific SBA Loan Programs
The citizenship requirement applies across all major SBA loan programs:
SBA 7(a) Loans
The most popular SBA loan program — used for business acquisitions, working capital, equipment, and real estate — now requires 100% citizen ownership. This affects loans up to $5 million.
SBA 504 Loans
The 504 loan program, primarily used for commercial real estate and major fixed assets, is subject to the same citizenship requirement. These loans, which can go up to $5.5 million (or more for certain energy projects), are equally restricted.
SBA Microloans
Even the microloan program, which provides smaller loans up to $50,000 through nonprofit intermediaries, falls under the updated citizenship requirements.
SBA Express Loans
Express loans, valued for their faster turnaround times, are also subject to the new rules. The streamlined process doesn’t exempt borrowers from the citizenship verification requirement.
Alternative Financing Options for Non-US Citizens
If you’re a non-citizen entrepreneur who can no longer access SBA financing, you still have options. They may not offer the same favorable terms as SBA loans, but they can help you start or grow your business.
1. Conventional Bank Loans
Traditional bank loans are not subject to SBA citizenship requirements. Many banks will lend to LPRs and other non-citizens with lawful status, though you’ll typically need:
- Strong credit history (700+ credit score)
- Higher down payments (typically 20-30% vs. SBA’s 10%)
- More collateral
- Proven business track record
The trade-off is higher rates and less favorable terms compared to SBA loans, but conventional financing remains accessible to qualified non-citizen borrowers.
2. Seller Financing
If you’re buying a business, seller financing can be an excellent alternative. The business seller acts as the lender, allowing you to pay for the business over time. Many sellers are open to this arrangement because it provides them with ongoing income and can offer tax advantages.
3. Private or Hard Money Lenders
Private lenders and hard money lenders focus on the value of the collateral and the business opportunity rather than the borrower’s citizenship status. Expect higher interest rates (often 10-15%+) but more flexible qualification criteria.
4. Online and Fintech Lenders
Online lenders like Bluevine, Fundbox, and OnDeck may offer business financing to non-citizens with appropriate documentation. Terms vary widely, and interest rates are generally higher than SBA loans, but the application process is often faster and more streamlined.
5. Pursue Naturalization
If you’re an LPR who has been a permanent resident for the required period (typically 5 years, or 3 years if married to a U.S. citizen), pursuing U.S. citizenship would restore your eligibility for SBA loans. While this is a longer-term solution, it may be worth considering if SBA financing is important to your business plans.
6. ITIN Loans and Portfolio Lending
Some community banks and credit unions offer portfolio loans (loans they keep on their own books rather than selling) to non-citizen borrowers with Individual Taxpayer Identification Numbers (ITINs). These programs vary by lender and region.
Frequently Asked Questions: SBA Loans and Citizenship
Can a green card holder get an SBA loan in 2025?
No. As of March 1, 2025, green card holders (Legal Permanent Residents) are no longer eligible for SBA loans. The SBA now requires 100% U.S. citizen ownership for all applicant businesses. This applies to all SBA loan programs including 7(a), 504, microloans, and Express loans.
When did the SBA citizenship requirement change?
The new citizenship requirement took effect on March 1, 2025. The SBA updated its Standard Operating Procedures in response to executive orders from the Trump administration directing federal agencies to prioritize U.S. citizens in government programs.
Can a non-US citizen be a minority owner in a business that gets an SBA loan?
A non-citizen can potentially own less than 20% of a business that applies for an SBA loan, as the citizenship requirement applies to owners with 20% or greater ownership. However, lenders may still scrutinize the ownership structure, and the SBA has cautioned against restructuring ownership solely to circumvent the citizenship requirement.
I’m in the process of becoming a U.S. citizen. Can I still get an SBA loan?
Not until your naturalization is complete. Being in the process of applying for citizenship does not satisfy the requirement. You must be a fully naturalized U.S. citizen at the time of loan application and closing.
Are naturalized citizens eligible for SBA loans?
Yes, absolutely. Naturalized U.S. citizens have the same eligibility as natural-born citizens. There is no distinction between naturalized and natural-born citizens under SBA lending rules.
What if I had an SBA loan approved before March 2025 but haven’t closed yet?
Unfortunately, the new rules apply to all loans not yet fully disbursed as of March 1, 2025. If your loan had not closed and funded before the effective date, it is subject to the new citizenship requirement. This was one of the most painful aspects of the transition for many borrowers in our pipeline.
Can a non-citizen get a business loan (not SBA)?
Yes. The citizenship requirement only applies to SBA-guaranteed loans. Conventional bank loans, private lending, seller financing, and online lending platforms may all be available to non-citizen borrowers with appropriate documentation and qualifications.
Does this affect existing SBA loans held by non-citizens?
The new rules apply to new loan applications. If you already have an active SBA loan that was originated before the policy change, your existing loan is not affected. You are still obligated to make payments per your loan agreement, and the SBA guarantee remains in place.
Our Perspective: A Difficult but Important Change to Understand
At GoSBA Loans, we work with entrepreneurs every day who are trying to buy or grow businesses using SBA financing. This policy change has been one of the most significant shifts in SBA lending eligibility that we’ve seen.
We’ve had to deliver difficult news to borrowers who had strong financials, excellent credit, and viable business plans — but who were no longer eligible simply because of their citizenship status. These are hardworking entrepreneurs who have built lives and businesses in the United States, and we understand how frustrating this change is.
Regardless of one’s view on the policy, it’s crucial for borrowers and lenders to understand the current rules. If you’re a non-citizen entrepreneur, the worst thing you can do is waste months pursuing an SBA loan that will ultimately be declined.
Instead, we encourage you to:
- Understand your current options — explore the alternative financing paths outlined above
- Consider naturalization — if you’re an eligible LPR, becoming a citizen restores SBA eligibility
- Consult with professionals — an immigration attorney can advise on the fastest path to citizenship, and a lending advisor can help identify non-SBA financing options
Need Help Navigating SBA Loan Eligibility?
Whether you’re a U.S. citizen ready to pursue an SBA loan or a non-citizen exploring alternative financing, the team at GoSBA Loans can help. We’ve facilitated over $320 million in SBA financing and understand the lending landscape inside and out.
Schedule a free consultation with one of our loan officers to discuss your specific situation and explore your options. Our service is 100% free for borrowers — lenders pay our fee.
This article was last updated in February 2025 to reflect the most current SBA lending policies. SBA rules and regulations can change. Always consult with a qualified SBA lending professional for advice specific to your situation.
