No. Since March 1, 2026, SBA’s 7(a) and 504 loan programs accept only businesses that are 100% owned by U.S. citizens or U.S. nationals. A green card holder no longer qualifies, and a business with any green card holder among its owners does not qualify either. Below is what the rule says, what it means for mixed-ownership businesses, and the options outside SBA to compare.
Can a green card holder get an SBA loan in 2026?
Not under the 7(a) or 504 programs. SBA Procedural Notice 5000-876626, published February 11, 2026, requires that 100% of all direct and indirect owners of an applicant be U.S. citizens or U.S. nationals who have their principal residence in the United States, its territories or possessions. The change took effect March 1, 2026.
The notice names green card holders directly. Its applicant certification lists “A Lawful Permanent Resident (LPRs) (commonly referred to as “green card holders”)” among Ineligible Persons, along with visa holders, DACA recipients and other non-citizens. SBA later built this notice into its SOP 50 10 8.1, which takes effect October 1, 2026, as SBA Information Notice 5000-880695 confirms.
| Owner status | How the rule treats it |
|---|---|
| U.S. citizen with principal residence in the U.S. | Counts toward the 100% requirement. |
| U.S. national (for example, born in American Samoa or Swains Island) with principal residence in the U.S. | Counts toward the requirement. The lender must document the status with evidence such as a birth certificate or passport. |
| Green card holder (permanent or conditional LPR) | Listed as an Ineligible Person. A business with this owner is not 100% citizen or national owned. |
| Visa holder, non-resident alien, DACA recipient, refugee or asylee | Listed as an Ineligible Person in the same certification. |
What the March 1, 2026 date means for your application
The notice draws a line by date. Applications already in process are treated differently from new ones.
| Situation | What the notice says |
|---|---|
| Application with green card (LPR) ownership that reached R1 status in SBA’s E-Tran system by 11:59 PM Eastern, February 28, 2026 | SBA will process it. |
| Non-delegated application entering R1 status on or after March 1, 2026 | Only applications from businesses with 100% citizen or national ownership are eligible. |
| 7(a) or 504 loan that receives an SBA loan number on or after March 1, 2026 under delegated procedures | The ownership requirement applies. |
What it means if your business has mixed ownership
The rule looks at every owner, direct and indirect, not just the person running the company. The test is 100% ownership, so one owner who holds a green card is enough to put the business outside the 7(a) and 504 requirement. Under the notice, a business with an Ineligible Person as an owner is ineligible unless that person completely divests their ownership before the SBA loan number is issued. The notice also has a six-month lookback for owners. Ask your attorney and lender how this applies to your situation.
What about loans that were already approved?
The notice applies to loans that receive an SBA loan number on or after March 1, 2026. If you already hold an SBA loan, ask your lender how the rule affects your loan, including any future request you may make on it. Ask in writing, and keep the answer in your file.
How 7(a) and 504 loans work for eligible businesses
For businesses that meet the ownership rule, these are SBA’s main loan programs, with figures from SBA’s own pages.
| Program | Maximum amount | Common uses | Repayment and rate notes |
|---|---|---|---|
| SBA 7(a) loan | $5 million | Working capital, machinery and equipment, real estate, refinancing business debt, changes of ownership | Most term loans are repaid with monthly principal and interest. Payments stay the same on fixed-rate loans. |
| SBA 504 loan | $5.5 million | Buildings, land, and long-term machinery and equipment with at least 10 years of useful life | 10-, 20- and 25-year terms. Rate is pegged to an increment above the current 10-year Treasury rate. Available only through Certified Development Companies. Not for working capital. |
| SBA microloan | Up to $50,000; average about $13,000 | Working capital, inventory, supplies, furniture, fixtures, machinery, equipment | Maximum repayment term of seven years. As of October 28, 2026, SBA says rates are generally 8%-13%. Offered through intermediary lenders. Not for existing debts or real estate. |
What would the payment be on a $1,000,000 business loan?
SBA does not give one payment for a $1,000,000 loan. The payment depends on the rate, the term, whether the rate is fixed or variable, and the fees. These are the pieces SBA does publish:
- For 7(a) loans of $350,001 and higher, the variable rate can be no more than the base rate plus 3.0%. The base rate can be the prime rate or the SBA Optional Peg Rate. From March 1, 2026, SBA Procedural Notice 5000-875051 also allows SOFR, the 5-year Treasury Note Rate and the 10-year Treasury Note Rate as alternative base rates.
- As of October 27, 2026, the Federal Reserve H.15 release listed the bank prime loan rate at 7.00%.
- For most 504 loans approved October 1, 2026 through September 30, 2027, the upfront guaranty fee is 0.50% and the annual service fee is 0.203% of the outstanding balance, per SBA’s FY 2027 504 fee notice. Both fees are waived for loans to manufacturers, food supply chain businesses and businesses in rural areas. Loans under the 504 Debt Refinance without Expansion Program carry a 0.204% annual fee.
For 7(a) loans, the SBA FY 2027 7(a) fee notice sets the upfront guaranty fee as a share of the guaranteed portion. The fee is 0% for loans of $700,000 or less to manufacturers, food supply chain businesses and businesses in rural areas.
| 7(a) loan size or term | FY 2027 upfront guaranty fee |
|---|---|
| $150,000 or less | 2% of the guaranteed portion |
| $150,001 to $700,000 | 3% of the guaranteed portion |
| $700,001 to $5,000,000 | 3.5% of the guaranteed portion up to $1,000,000, plus 3.75% of the guaranteed portion over $1,000,000 |
| Maturity of 12 months or less | 0.25% |
Ask your lender for a written repayment schedule that shows the rate, term, monthly payment and every fee before you sign.
How do I get qualified for an SBA loan?
You do not apply to SBA directly. SBA’s 7(a) page says that “SBA does not provide 7(a) loans directly to borrowers,” and that you will work with your lender. The key eligibility factors, according to SBA, are what the business does to receive its income, its credit history, and where it operates. Your lender decides which documents you need.
For a 504 loan, SBA says the business must be an operating business, operate for profit, be located in the U.S., be small under SBA size requirements, and not be an ineligible type. Lenders also look at management expertise, a feasible business plan, good character and the ability to repay. For the 7(a) Working Capital Pilot, SBA lists at least one year of operating history and timely financial statements, receivables and payables agings, and inventory reports.
To find a lender, start with SBA’s 7(a) loan page, which links to Lender Match. You can also reach an SBA district office or an SBA Resource Partner for help with the process.
What are the options outside SBA loans?
Several lenders make business loans outside SBA programs. The Federal Reserve’s 2026 Report on Employer Firms, drawn from the 2025 Small Business Credit Survey, found that applicants most often sought financing at large banks, followed by online lenders and small banks. Credit union and bank applicants were more satisfied with their experiences than applicants to online lenders and finance companies.
The same survey found that 42% of applicants received the full amount they sought, 36% received some or most, and 22% received none. Of firms with debt, 59% used a personal guarantee to secure it, and 51% used business assets. Plan for those terms when you compare lenders.
| Option | What it is | What to compare |
|---|---|---|
| Bank term loan or line of credit | Lump-sum or revolving credit from a bank | Rate, term, collateral, and whether a personal guarantee is required |
| Credit union loan | Credit from a member-owned lender | Membership requirements and the credit union’s lending criteria |
| Equipment financing | Financing to buy equipment | Term, down payment and what happens to the equipment if you default |
| Community lenders such as CDFIs | Lenders with a community-focused mission | Whether your business and location are within their lending area |
| Working capital loans vs lines of credit | Two common structures for short-term cash needs | How each is repaid and how the limit is set |
None of these options is guaranteed. Each lender sets its own criteria. For a look at another structure, see revenue-based financing vs traditional business loans.
Merchant cash advances: read the terms before you sign
A merchant cash advance is commonly structured as sales-based financing: an upfront payment in exchange for a share of future sales. The Texas Senate Research Center analysis of H.B. 700 describes them this way. Regulators have taken the position in some cases that certain so-called merchant cash advances were loans; for example, the New York Attorney General alleged that Yellowstone was providing loans rather than MCAs.
The New York Attorney General sued Yellowstone Capital in March 2024, alleging it was “providing loans rather than MCAs.” The New York Attorney General’s Yellowstone settlement page says the settlement canceled all merchant debts to Yellowstone, totaling $534 million, and applies only to Yellowstone MCAs. The same page says the Attorney General has asked a court to rule that Delta Bridge (Cloudfund) MCAs are illegal loans. That is a request, not a ruling.
The FTC describes MCA companies as providing funds in exchange for a percentage of revenue, and says they typically make daily withdrawals from the business account until the obligation is met. In a 2024 FTC press release, a court entered a $20.3 million judgment against an MCA operator for deceiving small businesses about the amount of funding it would provide. Before you sign, ask for the total repayment amount, the daily or weekly debit amount, any personal guarantee, and whether the contract includes a confession of judgment. The FTC has alleged that confessions of judgment were used in ways consumers did not expect.
How to spot an SBA loan scam
SBA says it “does not provide grants for starting and expanding a business.” It also says it only communicates from email addresses ending in @sba.gov, and that if someone claiming to be from SBA uses another address, you should suspect and report fraud. Read the full list on SBA’s grants page.
The FTC has also acted against brokers that promised access to lenders. In a November 2025 press release, the FTC said Seek Capital and its CEO were permanently banned from providing business financing and related services. The FTC alleged that the company advertised special relationships with lenders and charged clients thousands of dollars to open credit cards, often without the promised 0% interest terms. Be wary of any broker who asks for fees up front.
Frequently asked questions
Can a green card holder apply for an SBA loan?
Not for 7(a) or 504 loans. Since March 1, 2026, the applicant’s direct and indirect owners must be 100% U.S. citizens or U.S. nationals.
If my partner is a citizen and I have a green card, can the business still apply?
Under the notice, the business does not meet the 100% test while any owner is a green card holder. Ask your lender and your attorney how your ownership is set up.
Does the rule affect SBA microloans?
The notice covers 7(a) and 504 loans. Microloans are offered through intermediary lenders, so ask the intermediary you are considering what it requires.
What is the payment on a $1,000,000 loan?
SBA does not publish one figure. Get a written schedule from your lender that shows the rate, term, monthly payment and fees.
Your next steps
- List every direct and indirect owner and their status before you talk to a lender.
- Ask your lender in writing how the March 1, 2026 rule applies to your business and any loan you already hold.
- Compare at least two non-SBA options from the table above, and read every fee and repayment term.
By USPatriotNews.com Editorial Team
