Effective March 1, SBA financing will be limited to businesses owned entirely by U.S. citizens. Lawful Permanent Residents will no longer qualify as owners under SBA loan programs. Any loan approved on or after March 1 must comply with this new requirement.
Timing now matters more than ever. Based on current SBA processing timelines, applications not submitted by the end of this week are likely to be reviewed under the new rules. That shift alone could determine eligibility.
If you have an application in progress or are working with borrowers whose loans have not yet been submitted to the SBA, pay close attention. Any application that includes an owner who is a Lawful Permanent Resident and does not receive approval by March 1 will be declined.
There is one important exception. Loans that already received approval, including an Authorization or issued Terms and Conditions, will remain valid. Those approvals will follow the Standard Operating Procedures in effect at the time they were granted. This protection is especially relevant for borrowers in the 504 loan space and should allow funding to proceed without disruption.
In short, submission and approval dates now drive outcomes. Waiting could change eligibility entirely.
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