Glossary · People and paperwork
Foreign national
In short
A person who is not a citizen of the country in which they are residing or conducting business. For SBA loans, their immigration status is critical.
What it means in a deal
A foreign national can be an eligible SBA borrower if they are a Lawful Permanent Resident (LPR) or have a valid work visa that allows them to own and operate a business in the U.S. This eligibility is crucial and will be thoroughly vetted by the lender and the SBA. You'll need to provide documentation like Form I-551.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Foreign national
- If a key non-owner employee is a foreign national, does this affect loan eligibility?
- How does a lender verify the source of gifted equity injection funds from a foreign national?
- How does a lender verify the source of gifted equity injection funds when the donor is a foreign national?
- Can a business owned by a trust be eligible for a 7(a) loan if the trustee is a foreign national?
- If a key management employee who is not an owner is a foreign national, does this affect SBA 7(a) loan eligibility?
- Can a foreign national who is not a U.S. citizen or LPR serve as a personal guarantor on a 7(a) loan?
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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