As of March 1, 2026, the Small Business Administration (SBA) made changes to eligibility requirements for securing an SBA loan. The SBA is requiring that 100% of all direct or indirect owners of a small business applicant be U.S. Citizens or U.S. Nationals who have their principal residence in the United States, its territories, or possessions. Permanent residents (green card holders) will no longer be eligible for an SBA loan.
This policy change rescinds the previous 2025 policy in which 100% of a business’s ownership had to be held by a U.S. citizen, national or green card holder.
What Do SBA Changes Mean for Pending Loan Applications?
Pending applications for borrowers with green cards must be approved by March 1st, or they will not be eligible to receive capital through SBA programs.
What Do SBA Changes Mean for Current Loans?
If on March 1, 2026 you no longer meet eligibility requirements but are repaying an SBA loan, the change will not affect you. However, you will need to modify ownership if you want to apply for another SBA loan.
What Are Alternatives to SBA Loans for Permanent Residents?
For some entrepreneurs, this change may create a challenge in securing affordable financing for their small businesses. However, if you do not meet the new requirements set by the SBA, you may be able to access flexible financing through conventional business loans.
Frequently Asked Questions:
What are the new eligibility requirements for an SBA loan?
- As of March 1, 2026, in order to meet eligibility requirements for an SBA loan, 100% of the business needs to be owned by a U.S. Citizen or National.
What should you do if you don’t meet the new eligibility requirements but currently have a funded SBA loan?
- No changes will be made to your loan. However, if you would like to apply or be approved for another SBA loan after March 1, 2026, you must modify ownership to ensure all owners are U.S. Citizens.
What to do if you do not meet eligibility requirements and have an active loan application?
- If you are in the process of applying, contact your lender and seek opportunities to move the application forward.