Starting March 1, 2026, businesses with any ownership by green card holders will lose access to US government-backed small business loans. This change comes after the US Small Business Administration updated its citizenship and residency requirements for borrowers. Green Card Holders Barred from SBA-Backed Small Business Loans Starting March 1, 2026 The revised policy affects major SBA loan programs and applies regardless of how small the ownership stake held by a lawful permanent resident may be. An official SBA policy notice announcing the change was released on February 2, 2026. Under the new rules, 100% of both direct and indirect owners of a business applying for SBA-backed loans must be either US citizens or US nationals. In addition to citizenship status, all qualifying owners must have their primary residence within the United States or its territories. As a direct result, lawful permanent residents will be prohibited from holding any ownership interest in a business seeking SBA-supported financing after the effective date. The policy update amends Standard Operating Procedure 50 10 8, which governs SBA lender and development company loan programs. SBA Withdraws Policy Allowing Limited Foreign or Non-Resident Ownership Alongside this revision, the SBA has withdrawn an earlier procedural notice… Read MoreBusiness Archives – Trak.in – Indian Business of Tech, Mobile & Startups
