Overview
- New guidance requires that 100% of every applicant’s direct and indirect owners be U.S. citizens or nationals with a principal residence in the United States, explicitly excluding lawful permanent residents from any ownership share.
- The revision to SOP 50 10 8 takes effect March 1, 2026, and rescinds a December 2025 notice that had allowed up to 5% foreign ownership under narrow conditions.
- The policy applies across core SBA-guaranteed products, including the 7(a) and 504 programs that are distributed through participating lenders rather than direct SBA loans.
- SBA officials say the change aligns with Title 13 regulations and Executive Order 14159, while an agency spokesperson told CBS News the goal is to channel capital to U.S. job creators.
- Democratic lawmakers and small‑business advocates condemned the move, and lenders warn many firms with green card holder owners may need to restructure stakes or seek costlier financing, with particular concern for sectors with significant Indian‑origin ownership.