It is April 28, 2026. A massive policy shift has just hit the SBA 7(a) and 504 loan programs. Effective March 1, 2026, the SBA has restricted loan eligibility exclusively to businesses that are 100% owned by U.S. citizens or U.S. nationals.
1. The Green Card “Lockout”
- The Change: Previously eligible green card holders are now excluded from participation at any level of ownership. This applies to all direct and indirect owners, including those within holding companies or trusts.
- The Impact: If your LLC has even a 1% minority owner who is a permanent resident (green card holder), your current SBA application is likely dead in the water.
- The Shark Insight: “This is a protectionist pivot. If you’re planning an acquisition or a ‘Business Purchase’ (Article #562) using SBA funds, you must audit your cap table immediately. One non-citizen investor can disqualify your entire multi-million dollar loan. If you’re in this position, it’s time to look at Article #581 (Compute-for-Equity) as a non-debt alternative.”