Overview
- The revised policy requires 100% of direct and indirect owners to be U.S. citizens or nationals with a principal residence in the United States.
- The notice withdraws the prior allowance for up to 5% non-citizen or out-of-country ownership, establishing a zero-tolerance threshold.
- The change covers SBA-backed credit, including 7(a) and 504 loans that account for tens of billions in annual lending, but it does not affect conventional bank financing.
- Lenders and Certified Development Companies are reworking ownership verification and underwriting procedures, and some are expediting files from legal permanent residents before March 1, such as an Amplio loan now being pushed to approval.
- Democratic lawmakers and small-business advocates criticized the move as harmful to immigrant entrepreneurship, while the agency said the shift prioritizes support for American citizens.