Can a green card holder own a business that gets an SBA loan?
Short answer
No, not for 7(a) or 504 loans. Since March 1, 2026, lawful permanent residents may not own any percentage of the applicant (SBA Policy Notice 5000-876441). All direct and indirect owners must be U.S. citizens or U.S. nationals with a principal residence in the United States.
No. Since March 1, 2026, SBA's rule is that lawful permanent residents may not own any percentage of the applicant. SBA Policy Notice 5000-876441 made the change.
The rule
100% of direct and indirect owners and SBA-required guarantors must be U.S. citizens or U.S. nationals. Each must have a principal residence in the United States, its territories or possessions (SOP 50 10 8.1, Sec. A, Ch. 1, Para. F). Appendix 3 defines an Ineligible Person to include permanent and conditional lawful permanent residents.
Transition
Procedural Notice 5000-876626 applied the rule to delegated loans approved on or after March 1, 2026. It also applied to non-delegated applications entering R1 status in E-Tran on or after that date. Applications reaching R1 status by 11:59 PM Eastern on February 28, 2026 were still processed.
Options if a green card holder is an owner
- The person can completely divest before the SBA loan number is issued.
- The person can naturalize. Naturalized citizens are eligible with no special restrictions. SBA looks back 6 months before the SBA loan number is issued, so ask your lender how it treats a recent naturalization.
- The person can give a limited guaranty in the cases the SOP allows, as a non-owner.
The rule applies to 7(a) and 504 loans. Existing loans have separate treatment in Information Notice 5000-877673.
Ask lending partners about your loan
Tell us the amount you need and what it is for. We refer you to lenders that may fund businesses like yours, and it costs you nothing.
Janover Capital LLC is not a lender and is not the SBA. The lender makes the credit decision. A lender or marketplace may pay us a referral fee if we connect you, at no cost to you. Advertiser disclosure.