SBA Procedural Notice 5000-877356 Updated SOP 52 00 B Microloan Program Citizenship Requirements
Summary
SBA Procedural Notice, Control No. 5000-877356, published March 13, 2026 and effective April 1, 2026, to SBA employees and Microloan Program intermediaries, updating SOP 52 00 B on Microloan Program citizenship requirements. It announces that SBA is incorporating into SOP 52 00 B, Microloan Program, the policy changes issued in SBA Policy Notice 5000-877232, Citizenship Requirements. It states that SBA is requiring that 100% of all owners of a small business applicant be U.S. citizens, as the notice sets out.
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SBA Procedural Notice
TO: All SBA Employees and Microloan Program CONTROL NO.: 5000-877356
Intermediaries
SUBJECT: Updated SOP 52 00 B Microloan PUBLICATION: March 13, 2026
Program Citizenship Requirements
EFFECTIVE: April 1, 2026
The purpose of this notice is to announce that SBA is incorporating into Standard Operating
Procedure (“SOP”) 52 00 B, Microloan Program, recent policy changes issued in SBA Policy
Notice 5000-877232 – Citizenship Requirements. The SBA is requiring that 100% of all owners
of a small business applicant be U.S. Citizens or U.S. Nationals who have their Principal
Residence in the United States, its territories, or possessions.
These changes will apply to all loans beginning on or after April 1, 2026.
MICROLOANS (SOP 52 00 B)
SBA hereby revises the Microloan Program Standard Operating Procedure (SOP) 52 00 B
procedures related to businesses owned by non-U.S. citizens. Consistent with Executive Order
14159 “Protecting the American People Against Invasion,” SBA is requiring that at the time of
application, the microloan Intermediary must document 100% of the business owners’
citizenship to confirm that the business is eligible.
Beginning on the effective date of this Procedural Notice, Intermediaries may only make SBA
microloans to businesses owned 100% by U.S. Citizens or U.S. Nationals who have their
Principal Residence in the United States, its territories, or possessions. Principal Residence is
defined by IRS Publication 523.
Intermediaries must document in their loan files that no business owner is an Ineligible Person.
Ineligible Persons include, but are not limited to: (i) undocumented aliens who are in the U.S.
illegally; (ii) an individual granted asylum, a refugee, a visa holder, a non-immigrant alien under
8 U.S.C. § 1101(a)(15), those under Deferred Action for Childhood Arrivals (DACA); (iii) an
individual, including a visa holder, who is not a U.S. Citizen, or U.S. National (non-resident
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aliens); (iv) an individual (including U.S. Citizens and U.S. Nationals) who has their Principal
Residence outside of the United States, its territories, or possessions; (v) business concern or
entity that was created, organized, or incorporated outside of the United States, its territories, or
possessions; (vi) an individual who is a citizen of the People’s Republic of China, or the Special
Administrative Region of Hong Kong; and (vii) Lawful Permanent Residents (LPRs) (commonly
referred to as “green card holders”), including individuals with permanent (Unconditional) LPR
status, and Conditional LPR status.
SOP 52 00 B Section 2.21. “Microborrower” is amended as follows (Page 13):
“An individual or small business concern that borrows SBA Microloan Program funds from an
Intermediary for the purpose of starting, continuing, or growing a business. Microborrowers
must be 100% owned by (or in the case of sole-proprietors, the individuals must be) U.S.
Citizens or U.S. Nationals, who have their Principal Residence in the United States, its
territories, or possessions, and are also subject to the general requirements for borrowers
referenced in 13 CFR Part 120. Principal Residence is defined by IRS Publication 523. All entity
owners (whether direct or indirect) must be created, organized, or incorporated in the United
States, its territories, or possessions.”
SOP 52 00 B Section 3.F.3 “Ineligible types of businesses” subsection (u) is amended as
follows (Page 48):
“u) Any business with an owner who is NOT a U.S. Citizen or U.S. National or has an Associate
that is an Ineligible Person. Ineligible Persons include, but are not limited to: (i) undocumented
aliens who are in the U.S. illegally; (ii) an individual granted asylum, a refugee, a visa holder, a
non-immigrant alien under 8 U.S.C. § 1101(a)(15), or those under Deferred Action for
Childhood Arrivals (DACA); (iii) an individual, including a visa holder, who is not a U.S.
Citizen, or U.S. National (non-resident aliens); (iv) an individual (including U.S. Citizens and
U.S. Nationals) who has their Principal Residence outside of the United States, its territories, or
possessions; (v) business concern or entity that was created, organized, or incorporated outside
of the United States, its territories, or possessions; (vi) an individual who is a citizen of the
People’s Republic of China, or the Special Administrative Region of Hong Kong; and (vii)
Lawful Permanent Residents (LPRs) (commonly referred to as “green card holders”), including
individuals with permanent (Unconditional) LPR status, and Conditional LPR status.
SOP 52 00 B Section 3.F.5. “Microloans to Businesses owned by Non-Citizens” is amended
as follows (Page 49):
“Businesses eligible to receive SBA Microloans are limited to businesses owned 100% by U.S.
Citizens or U.S. Nationals and comply with the requirements in this paragraph. Intermediaries
must document in their loan files that no business owner is an Ineligible Person as defined in
Section 3.F.3.
Microloan Training and Technical Assistance:
SOP 52 00 B Section 2.12. “Grant” is amended to read as follows (Page 11):
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SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
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“A Federal award of money, or property in lieu of money, to an eligible grantee that must
account for its use in accordance with its Notice of Award. For Microloan Program purposes,
funds are to be expended for the provision of training and technical assistance to program funded
Microborrowers and to some extent, prospective eligible Microborrowers.”
SOP 52 00 B Section 2.40. “Technical Assistance (TA)” is amended to read as follows (Page
15):
“Counseling or training services provided to current or prospective eligible Microborrowers
under a TA grant. TA includes assistance in marketing, management, business counseling and
training. Counseling may include giving advice, guidance, or instruction specifically tailored to
an individual or a group of individuals associated with a single business. Topics must include
information necessary to start, manage, market, and/or operate a small business. Information
delivery media may vary and expand beyond person-to-person oral communication to include
teleconferencing, electronic media, printed materials, or any like delivery mechanism provided it
is effective in assisting clients to reach their training goals.”
SOP 52 00 B Section 3.E.1 “General Guidelines”, the first paragraph is amended to read as
follows (Page 38):
“SBA is authorized to provide grants to Intermediaries for the purpose of providing intensive
marketing, management, and technical assistance to small businesses that are current borrowers
or eligible prospective borrowers under the Agency’s Microloan Program. This technical
assistance may not be provided to businesses that do not meet the eligibility requirements for a
microloan at the time the assistance is provided.”
SOP 52 00 B Section 3.E.8. is amended by adding as subsection (5) the following (Page 42):
“5. Intermediaries may only use SBA grant funds to provide TA to individuals or businesses
owned by U.S. Citizens or U.S. Nationals. Intermediaries are restricted from providing TA
to individuals or businesses owned by persons who include, but are not limited to: (i)
undocumented aliens who are in the U.S. illegally, (ii) an individual granted asylum, a
refugee, a visa holder, a non-immigrant alien under 8 U.S.C. § 1101(a)(15), or those under
Deferred Action for Childhood Arrivals (DACA); (iii) an individual, including a visa holder,
who is not a U.S. Citizen, or U.S. National (non-resident aliens); (iv) an individual (including
U.S. Citizens and U.S. Nationals) who has their Principal Residence outside of the United
States, its territories, or possessions; (v) business concern or entity that was created,
organized, or incorporated outside of the United States, its territories, or possessions; (vi) an
individual who is a citizen of the People’s Republic of China, or the Special Administrative
Region of Hong Kong; and (vii) Lawful Permanent Residents (LPRs) (commonly referred to
as “green card holders”), including individuals with permanent (Unconditional) LPR status,
and Conditional LPR status.”
PAGE 3 of 4 EXPIRES: 5/1/27
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
Federal Recycling Program Printed on Recycled Paper
SOP 52 00 B Section 3.F.22. “Technical Assistance and Training Provision, Design, and
Limitations”, the first paragraph is amended to read as follows (Page 56):
“Intermediaries must provide Technical Assistance (TA) to Microborrowers. Intermediaries may
also provide TA to prospective eligible Microborrowers.”
Questions
Questions concerning this Notice may be directed to James (Chris) Webb, Acting Chief,
Microenterprise Development Division at james.webb@sba.gov.
Thomas Kimsey
Associate Administrator
Office of Capital Access
PAGE 4 of 4 EXPIRES: 5/1/27
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
Federal Recycling Program Printed on Recycled Paper
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