SBA Loan Eligibility Now Excludes Green Card Holders
The U.S. Small Business Administration has narrowed who can access several of its loan programs, removing lawful permanent residents from eligibility.
Under SBA Policy Notice 5000-876441, effective March 1, 2026, the agency now requires that 100 percent of all direct and indirect owners of a business applying for SBA financing be U.S. citizens or U.S. nationals whose principal residence is in the United States, its territories, or possessions.
The notice applies to the SBA's 7(a) and 504/CDC loan programs and rescinds an earlier procedural notice that had allowed up to 5 percent foreign ownership. Lawful permanent residents, commonly known as green card holders, may no longer hold any ownership interest in a business that receives an SBA loan under the affected programs.
On March 9, 2026, the SBA issued News Release 26-35, extending the same restriction to its Surety Bond and Microloan programs. The agency stated that applicants for any SBA loan program must be U.S. citizens or U.S. nationals with their principal residence in the United States.
What This Means for Immigrant Business Owners
The policy does not prevent green card holders from owning or operating U.S. businesses. It does, however, limit access to SBA-backed capital if a lawful permanent resident has any direct or indirect ownership interest in the applicant business.
SBA Administrator Kelly Loeffler said the policy is intended to direct limited resources toward U.S. citizens, noting that the agency's lending authority is capped annually by Congress amid record demand for capital. According to the SBA, in Fiscal Year 2025 the agency approved 3,358 loans for businesses owned in part by a lawful permanent resident, representing about 4 percent of roughly 85,000 total loan approvals.
Congressional Response and Possible Future Changes
The SBA policy has drawn opposition in Congress. In a February 24, 2026 letter, ranking members of the House and Senate Small Business Committees, joined by several caucus chairs, urged the SBA to reverse the policy and argued that it would restrict capital for immigrant entrepreneurs.
Separately, the House previously passed H.R. 2966, the American Entrepreneurs First Act of 2025, which would reserve SBA loans for U.S. citizens, lawful permanent residents, and legal immigrants.
Immigration Guidance for Business Owners
The SBA eligibility change is a business-financing rule, but it directly affects many immigrant entrepreneurs. Green card holders who own businesses should confirm current financing requirements before applying for SBA-backed loans or changing ownership structures.
To discuss naturalization, investor visas, or immigration planning for business ownership, request a consultation with Attorney Demian S. Serianni.