Glossary · People and paperwork
Employment authorization document(EAD)
In short
A document issued by USCIS that proves a non-citizen is authorized to work in the U.S. This is distinct from Lawful Permanent Residence.
What it means in a deal
While an EAD allows you to work, it is generally NOT sufficient for SBA loan eligibility. The SBA typically requires borrowers who are not U.S. citizens to hold Lawful Permanent Residence (a Green Card) to secure a 7(a) loan. Don't confuse the two.
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.
Related terms
Common questions about Employment authorization document
- What is an SBA *loan authorization* document, and why is it important?
- How must a lender document the chosen base rate for a variable rate 7(a) loan in the loan authorization?
- If a seller note is on standby, is the seller prohibited from any post-sale employment with the business?
- How does a lender ensure the loan authorization precisely matches final closing documents to avoid guaranty repair?
- How does a lender ensure the loan covenants in the authorization are accurately reflected in the loan documents?
- What documentation is required to amend a 7(a) loan authorization for a change in project costs?
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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