AmiSight 1/15: A Small but Meaningful Fix from the SBA

Early in the Trump administration, the SBA changed a long-standing rule: instead of requiring 51% U.S. citizen ownership to qualify for an SBA loan, businesses now had to be 100% U.S.-owned. On paper it sounded minor. In reality, it caused real disruption—especially in immigrant and mixed-ownership communities.

I saw strong, tax-paying businesses suddenly shut out of SBA financing because a small ownership stake didn’t fit the new rule. Not because they were risky borrowers, but because the policy stopped reflecting how real businesses are structured.

The SBA has now taken a step toward correcting that. Under Procedural Notice 5000-872050, businesses with up to 5% aggregate ownership held by certain foreign or non-resident individuals can once again qualify for SBA 7(a) and 504 loans, effective for approvals on or after January 1, 2026.

This doesn’t restore the old standard, but it does restore flexibility—and for many owners, that 5% makes all the difference. It’s a reminder that small policy changes can have outsized impact on access to capital.

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