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Glossary · People and paperwork

Citizenship Requirement

In short

This refers to the SBA's rule that at least one owner of the applicant business must be a U.S. citizen or Qualified Alien. Buyers care because it's a fundamental eligibility criterion for obtaining an SBA loan.

What it means in a deal

For an SBA 7(a) loan, the applicant business must be at least 51% owned by U.S. citizens or Qualified Aliens. If you're not a U.S. citizen, you'll need to provide documentation like a Green Card (Form I-551) to prove Qualified Alien status. This is checked on SBA Form 1919.

Official sources

13 CFR Part 120 — Business Loans

Office of the Federal Register · Federal regulation

SBA Form 1919 — Borrower Information Form

U.S. Small Business Administration · SBA form

Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.

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Common questions about Citizenship Requirement

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Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.

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