SBA Eligibility for US Citizens Living Abroad

Hi All, I've been doing some research on whether a US Citizen is eligible for an SBA 7(a) acquisition loan if they are living abroad and looking to acquire a US business. Google and Chat GPT seem to indicate this is possible (in theory) with the below criteria, caveats and recommendations. I'm curious if any SBA lenders have seen this in practice and have experience with this scenario? Here is what Google and Chat GPT say: A U.S. citizen living in Canada can qualify for an SBA 7(a) acquisition loan. The SBA does not require the owner to reside in the U.S., but lenders look for clear evidence of credit history, tax compliance, and active management of the acquired business. Below are the key requirements and how lenders evaluate them. 1. Citizenship & Guarantee Requirements --SBA requires 20%+ owners to be U.S. citizens or permanent residents. --Living abroad does not disqualify an applicant. --The borrower must personally guarantee the loan. 2. Lenders must pull a U.S. credit report, so the borrower should have: --An active FICO score (ideally 650–720+). --At least 1–2 open U.S. credit accounts with recent activity. --No major delinquencies or credit issues in the last 24 months. --If credit is dormant, opening new U.S. credit lines resolves this quickly. 3. U.S. Tax Compliance --SBA lenders typically require: --Two years of U.S. personal tax returns, even if income was earned abroad. --Foreign income reported via Form 2555 or the foreign tax credit is fully acceptable. 4. Active Management Requirement SBA rules require owners to be actively involved in operations. For owners living in Canada, lenders look for a practical management plan, such as: --A U.S.-based general manager handling day-to-day operations. --The owner overseeing financial decisions, hiring, budgets, and strategic direction. --Regular on-site visits (e.g., quarterly). --Demonstrated ability to travel as needed. (Relocation is not required, but the ability to do so if necessary is viewed positively.) 5. Financial Readiness Lenders expect: --A U.S. personal bank account (business account opened at closing). --Documented liquidity for the standard 10% equity injection. --Strong cash flow in the target business (DSCR ~1.25×). --A clean personal financial statement. 6. Recommended Deal Structure --To maximize approval odds: --U.S. citizen owns at least 51% of the business. --Clear management & oversight plan provided to the lender. --Strong credit, clean taxes, and adequate liquidity. 7. Lender-Friendly Positioning Statement Use this when speaking to SBA lenders: "I am a U.S. citizen with active U.S. credit and tax filings. Although I reside in Canada, I will be directly managing the business, supported by a U.S.-based operations manager. I will oversee financials, staffing, and strategy, and will travel regularly to ensure hands-on involvement."