Can a U.S. citizen living abroad get an SBA loan?
Short answer
No. Anyone whose principal residence is outside the United States, its territories or possessions is an Ineligible Person, U.S. citizens included. That owner must completely divest before the SBA loan number is issued. Source: SOP 50 10 8.1, Appendix 3.
No. Citizenship alone is not enough. Each direct and indirect owner and SBA-required guarantor must have a principal residence in the United States, its territories or possessions. That is SOP 50 10 8.1, Sec. A, Ch. 1, Para. F.
How residence is defined
SBA uses the IRS Publication 523 definition of principal residence (Appendix 3). If you split time between two homes, ask a tax adviser how that test applies to you.
Territories count
Guam, Puerto Rico, the Commonwealth of the Northern Mariana Islands and the U.S. Virgin Islands are within the rule. People born in American Samoa and Swains Island are U.S. nationals at birth and are eligible. The lender must document a non-citizen national's status and enter a Social Security Number.
The earlier 5% exception is gone
Before March 1, 2026, U.S. citizens living abroad could hold up to 5% under a narrow exception. Policy Notice 5000-876441 rescinded it.
Your options
- Completely divest before the SBA loan number is issued.
- Move your principal residence back. SBA looks back 6 months before the SBA loan number is issued, so a recent move may not cure the issue by itself.
- If you hold no ownership, you may still give a limited guaranty in the cases the SOP allows.
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.