Non-SBA financing when an owner has a green card: what each option is, what the lender looks at, and what to ask first (2026)
By Juwon Lee, Principal · Published · Last checked September 29, 2026
Short answer: the SBA’s rule requiring 100% ownership by U.S. citizens or U.S. nationals applies to SBA-backed loans, not to private financing. Each non-SBA lender sets its own rules, and federal credit rules allow lenders to consider an applicant’s immigration status. The catch is products funded with government money: they can bring their own citizenship rules, as SBA Microloans now do. Ask before you send documents.
What changes outside the SBA
Under federal Regulation B, a lender may consider an applicant’s immigration status or status as a permanent resident, and any additional information needed to ascertain its rights and remedies regarding repayment. A lender may not consider national origin. (12 CFR 1002.6(b)(7) and (b)(9).) In practice, that means one lender may work with a business with a permanent-resident owner and another may not, and each may ask for proof of status. Business applicants also have a right to the reasons if they are turned down (12 CFR 1002.9); our guide to next steps after an SBA decline explains how.
The four options
These are the same four options on our financing options page, which also lists the ranges lenders publish.
1. Equipment finance & leasing
What it is
A loan or lease secured by the equipment you buy (new or used; sale-leaseback possible with some lenders).
What the lender is lending against
The equipment itself is the collateral. The lender is looking at what the equipment is, what it costs, and whether the business can make the payments.
Is government money involved?
Private equipment lenders and lessors are not bound by the SBA ownership rule.
Ask this lender first
- Is this your own financing, or an SBA-guaranteed product? (SBA 7(a) and 504 loans also finance equipment and carry the SBA ownership rule.)
- Do you finance businesses with a permanent-resident or visa-holder owner, and what proof of status will you ask for?
- Do you finance used equipment or sale-leasebacks for this type of equipment?
- Will you ask for a personal guarantee, and from whom?
What Maplestead Finance Partners prepares
The financials, the use of funds, and the cash-flow case, plus the seller's quote or invoice for the equipment.
2. Invoice factoring
What it is
A factor advances cash against invoices you have already issued.
What the lender is lending against
Your customers’ invoices. In the words of a factoring trade association publication, a factor lends “not based on the creditworthiness of the client or the client’s principals, but based on the creditworthiness of invoices of the customers of the client” (International Factoring Association, Commercial Factor). It fits businesses with business or government customers, not consumer-facing businesses.
Is government money involved?
Private factors are not bound by the SBA ownership rule. Federal Regulation B applies to credit incident to a factoring agreement: if a factor declines you, you can ask in writing for the reasons within 60 days (12 CFR 1002.9(a)(3)(ii)).
Ask this lender first
- Do you work with businesses with a permanent-resident or visa-holder owner?
- Will you notify my customers, and how do payments reach you?
- Which of my customers and invoices would you accept?
What Maplestead Finance Partners prepares
The financials, the use of funds, and the cash-flow case, plus the list of open invoices and the customers they are owed by.
3. Non-bank term loans & lines
What it is
Fixed-payment loans from non-bank lenders.
What the lender is lending against
The business itself: steady revenue and the ability to make fixed payments. These usually fit established businesses.
Is government money involved?
Non-bank lenders making their own loans are not bound by the SBA ownership rule.
Ask this lender first
- Is this your own loan, or an SBA-guaranteed product? (An SBA-guaranteed product carries the SBA ownership rule.)
- Do you lend to businesses with a permanent-resident or visa-holder owner?
- Is repayment a fixed monthly payment, or a daily or weekly debit?
What Maplestead Finance Partners prepares
The financials, the use of funds, and the cash-flow case.
4. State & CDFI programs
What it is
State funds and mission-driven lenders using non-SBA money, often with below-market rates for eligible borrowers.
What the lender is lending against
It depends on the program. These are often smaller amounts, and eligibility varies by state and by program.
Is government money involved?
This is where citizenship rules can come back. SBA Microloans, often made through community lenders, have required 100% ownership by U.S. citizens or U.S. nationals since April 1, 2026 (SBA Policy Notice 5000-877232). The U.S. Treasury has also announced that it will propose rules on how CDFI Fund awards are treated under federal public-benefit law (Treasury press release). A program funded with federal money can carry its own eligibility rules, so ask before you apply.
Ask this lender first
- Is this program funded with SBA money or other federal money that carries a citizenship or immigration-status rule?
- Who is eligible to own the business under this program?
- How long does approval usually take, and what is the most you lend?
What Maplestead Finance Partners prepares
The financials, the use of funds, and the cash-flow case, adjusted to the program's own application.
Before you apply anywhere: five questions
- Is this product SBA-guaranteed, or funded with other federal money? If yes, ask about its ownership and citizenship rules.
- Do you lend to businesses with a permanent-resident or visa-holder owner, and what proof of status will you want?
- What exactly are you lending against — equipment, invoices, or the business’s cash flow?
- Is repayment a fixed monthly payment, or a daily or weekly debit?
- If you decline, will you give the reason in writing? (Federal Regulation B gives business applicants a right to the reasons.)
What this guide does not cover
Maplestead Finance Partners does not arrange loans secured by real estate and does not place merchant cash advances or other daily-debit products.
Sources
- 12 CFR 1002.6 (Regulation B) — paragraphs (b)(7) and (b)(9)
- 12 CFR 1002.9 (Regulation B) — paragraph (a)(3)
- SBA Policy Notice 5000-877232 — Microloan citizenship requirement, effective Apr. 1, 2026
- U.S. Treasury press release sb0438 — CDFI Fund awards and PRWORA
- International Factoring Association, Commercial Factor — “Credit issues & debtor quality trends”
Related guides
Maplestead Finance Partners arranges business financing through lenders; it does not lend and is not affiliated with the SBA. This page is general information, not legal, tax, or immigration advice. Confirm your situation with your lender or attorney.