It is April 29, 2026. A massive compliance shift has just hit the SBA 7(a) and 504 loan programs. The SBA has officially rescinded the old 5% foreign/non-resident ownership exception.
1. The New SOP 50 10 8 Standards
- The Rule: Effective immediately, 100% of all direct and indirect owners of an SBA applicant must be U.S. Citizens or U.S. Nationals with principal residence in the U.S.
- The Green Card Lockout: Legal Permanent Residents (green card holders) are no longer eligible as owners for these primary loan programs. Even a 1% stake by a non-citizen triggers an automatic rejection.
- The Shark Insight: “The door just slammed shut for international partnerships seeking SBA leverage. If you have a green card partner, you must restructure ownership before applying. This is a protectionist pivot to ensure SBA capital stays fully within U.S. hands.”