The U.S. Small Business Administration (SBA) has recently implemented several changes to its 7(a) loan program to enhance financial integrity and expand access for small businesses. Here’s an overview of these updates:Small Business Administration
Restoration of Lender Fees
As of March 27, 2025, the SBA has reinstated lender fees for the 7(a) loan program. Previously, these fees were waived. Small Business Administration
As of March 7, 2025, the U.S. Small Business Administration (SBA) has updated its eligibility criteria for the 7(a) loan program concerning foreign ownership. To qualify for an SBA 7(a) loan, a business must now be entirely (100%) owned by U.S. citizens, U.S. nationals, or Lawful Permanent Residents (LPRs). Any ownership stake by foreign nationals, regardless of the percentage, renders the business ineligible for SBA financing.
For businesses seeking financing under the 7(a) loan program, reviewing and adjusting ownership structures to comply with these new requirements is crucial. Consulting with legal and financial advisors is recommended to explore alternative financing options if your business includes foreign ownership.
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