Green card SBA Loan ban implications

searcher profile

February 03, 2026

by a searcher from Dartmouth College - Tuck School of Business at Dartmouth in Garden Grove, CA, USA

Based on quick research: Around 3.5% of citizens+residents in the USA are GC Holders, however they are 15% - 50% more likely to own a business, hence we can safely say 6% of SBA demand just left the market. This begs the following questions (and more) - Will the SBA loan rate drop? - If so, will sellers increase valuations (lower rate) or decrease it (less demand)? - And how will this impact the equity market, with 6% less demand on the baseline, but perhaps more demand if valuations increase more than loan rate drop. - Will GC holders truly leave the arena? Or will they opt to other financing structures , both in terms of debt (seller notes? earn-outs?) and equity What are your thoughts on the immediate macro implications?
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Reply by a searcher
from University of Cambridge in Los Angeles, CA, USA
My understanding is that green card holders are still eligible for SBA loans; rather, visa holders are much more restricted with the recent legislation passed. Could you point us to where you're seeing a ban on GC holders?
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Reply by a lender
from University of Central Florida in St. Petersburg, FL, USA
Things could change again, but at the time of this message - they are no longer eligible as of March 1st. Only U.S. Citizens or U.S. Nationals who have their Principal Residence in the United States, its territories, or possessions are eligible for SBA financing. Here is the link to the SBA Policy Notice: https://www.sba.gov/sites/default/files/###-###-#### /Policy%20Notice%###-###-#### %20-%20Update%20to%20Citizenship%20and%20Residency%20Requirements%20and%20Recission%20of%20PN%###-###-#### pdf
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