SBA Issues Procedural Notice on Updated Citizenship and Residency Requirements

February 12, 2026

Bob Coleman
Founder & Publisher

SBA Issues Procedural Notice on Updated Citizenship and Residency Requirements

Yesterday, SBA issued Procedural Notice 5000-876626 – Revised Applicant Ownership Citizenship and Residency Requirements for 7(a) and 504 Loans. The Procedural Notice updates SOP 50 10 to incorporate recent policy changes outlined in SBA Policy Notice 5000-876441.

Effective March 1, 2026, 100% of all direct and indirect owners of a small business Applicant must be U.S. citizens or U.S. nationals whose principal residence is in the United States, its territories, or possessions. Lawful permanent residents (green card holders) are no longer eligible.

All recent SBA 7(a) and 504 notices are listed on Coleman’s public Google spreadsheet.