SBA's revised SOP 50 10 8, effective March 1, 2026, requires 100% of a borrower's direct and indirect owners to be US citizens or nationals residing in the US—excluding lawful permanent residents (green-card holders). It also retired the SBSS credit-score prescreen, restoring case-by-case 'prudent lending' underwriting.
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SBA rewrite bars green-card holders from 7(a)/504 loans, drops credit-score prescreen
Why this matters for founders
Immigrant founders on green cards are now ineligible to borrow via SBA 7(a)/504—review your cap table before applying and weigh conventional financing. Applicants previously auto-declined on a low SBSS score may now qualify under manual underwriting.
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