The short answer
No. Since March 2026, the SBA has made any small business owned in whole or in part by a foreign national ineligible for its 7(a) and 504 loans, and it has extended the rule to every SBA-guaranteed program. Owners must be U.S. citizens or U.S. nationals. Green card holders are neither, so even a small ownership stake disqualifies the business.
What Changed for Green Card Holders?
The SBA closed its loan programs to businesses with any non-citizen ownership. Its March 9, 2026 release describes a policy change "implemented earlier this month" that "made any small business owned in whole or in part by a foreign national ineligible for the agency's flagship 504 and 7(a) loan programs."
Green card holders were eligible before. The same release says that in fiscal year 2025 the SBA approved 3,358 loans for small businesses owned in part by a lawful permanent resident, about 4 percent of its 85,000 loan approvals.
Which SBA Programs Does the Rule Cover?
All of them. The March 9 notice extended the rule to the Surety Bond and Microloan programs, effective 30 days after publication, and states that "small business owners applying for any SBA loan program must be U.S. citizens or U.S. nationals with their principal residence in the United States."
Does a small ownership stake still count?
Yes. The SBA's wording is "owned in whole or in part," so a minority stake held by a green card holder makes the business ineligible.
Does the Rule Apply to Other Business Loans?
No. It governs SBA-guaranteed loans. Term loans, lines of credit, equipment financing and working capital advances outside the SBA programs are not SBA loans, and each funder sets its own requirements.
Batch Capital funds working capital advances with its own capital and places term loans, lines of credit and equipment financing with its lending partners. None of those are SBA programs. See every product on one desk, or apply in 5 to 10 minutes with no hard credit pull.
Is the Rule Still in Effect?
As of October 7, 2026, the SBA's own releases describe the citizenship requirement as in effect, and we found no court order blocking it. Rules like this can change, so confirm the current policy with an SBA lender before you apply.
For the other big SBA change this year, see the SBA's new $10 million combined limit.
Commonly Asked Questions
Can a business with a green card holder as a 10 percent owner get an SBA loan?
No. The SBA made any business owned in whole or in part by a foreign national ineligible for its 7(a) and 504 loans, and extended the rule to all SBA-guaranteed programs in March 2026.
Does the SBA citizenship rule apply to SBA microloans?
Yes. The SBA's March 9, 2026 notice extended it to the Microloan and Surety Bond programs, effective 30 days after publication.
Does the rule apply to non-SBA business loans?
No. It covers SBA-guaranteed lending. Conventional term loans, lines of credit, equipment financing and working capital advances follow each funder's own requirements.
How many SBA loans went to businesses with green card owners?
The SBA says it approved 3,358 such loans in fiscal year 2025, about 4 percent of its 85,000 approvals.
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