SBA Loans for Canadian acquiring a business in the US?

searcher profile

August 03, 2024

by a searcher from McGill University in Montreal, QC, Canada

Can Canadians obtain SBA loans to purchase a business in the US? I'm looking for information on the possibilities, limitations, and any specific requirements. Any insights or experiences would be appreciated!

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commentor profile
Reply by a searcher
in Edmonton, AB, Canada
To Add to Stephanie's correct comment, the American Citizen or PR will also have to Personally Guarantee the loan. You as a Canadian can then work out a Security agreement between the partners.

If you have more than 2 partners, say 2 Americans, then the split can be more for you. If three, 33 1/3rd each. For Control, you can, with the help of your lawyer, draw up an Operating Agreement with Profit Interest Partnership and Warrants, please consult with your American lawyer for this!

I also use a Cross Border Accountant and mine is in Edmonton, but the firm is all of North America.
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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
I see this question often. In order to quality for SBA financing you have to be a US citizen or green card holder. If you do not have that status that you cannot buy a business with SBA financing on your own. As a non-US Citizen you can own up to 49% of a US business that receives SBA financing so long as the other 51% of the business is owned by a US Citizen(s) who are also in legal control of the business. I hope this helps.
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