Update to SOP 50 10 8 – Citizenship and Residency Requirements and Recission of Procedural Notice 5000-872050
Summary
SBA Policy Notice, Control No. 5000-876441, published February 2, 2026 and effective March 1, 2026, to SBA employees, 7(a) lenders and certified development companies. It updates SOP 50 10 8 on citizenship and residency requirements and rescinds Procedural Notice 5000-872050. It advises that effective March 1, 2026 SBA revises Standard Operating Procedure 50 10 8, Lender and Development Company Loan Programs.
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Full text
SBA Policy Notice
TO: All SBA Employees; 7(a) Lenders and CONTROL NO.: 5000-876441
Certified Development Companies
SUBJECT: Update to SOP 50 10 8 – Citizenship PUBLICATION: February 2, 2026
and Residency Requirements and Recission of
Procedural Notice 5000-872050 EFFECTIVE: March 1, 2026
The purpose of this notice is to advise SBA employees, 7(a) Lenders, and Certified Development
Companies (“CDCs”) that effective March 1, 2026, SBA hereby revises Standard Operating
Procedure (“SOP”) 50 10 8 Lender and Development Company Loan Programs guidance related
to businesses owned by non-U.S. citizens. Consistent with 13 C.F.R. 120.100 and Executive
Order 14159 “Protecting the American People Against Invasion,” SBA is requiring that 100% of
all direct and/or indirect 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.
Effective March 1, 2026, this Notice rescinds SBA Procedural Notice 5000-872050, removing
the narrow exception that allowed a Borrower to have up to 5% ownership held by foreign
nationals, or U.S. Citizens, U.S. Nationals, or Legal Permanent Residents (LPRs) whose
Principal Residents was outside of the United States, its territories, or possessions. Further, and
beginning with the Effective Date of this Notice, Legal Permanent Residents (LPRs) will not be
eligible to own any percentage interest in an Applicant/Borrower, OC, or EPC.
Questions
Questions concerning this Notice may be directed to the Lender Relations Specialist in the
local SBA Field Office.
Kelly Loeffler
Administrator
U.S. Small Business Administration
PAGE 1 of 1 EXPIRES: 3/1/27
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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