SBA rules · SOP 50 10 8.1

Can a Chinese citizen own part of a business that gets an SBA loan?

No, a citizen of the People's Republic of China cannot own any part of a business that receives an SBA loan.

Quoted from SBA SOP 50 10 8.1Every quote checked word for word

In detail

100% citizenship requirement: SBA financing is restricted to applicants where 100% of direct and indirect owners and SBA-required guarantors are U.S. Citizens or U.S. Nationals who have their Principal Residence in the United States, its territories, or possessions.
Ineligible Person definition: The definition of an Ineligible Person explicitly includes an individual who is a citizen of the People's Republic of China, or the Special Administrative Region of Hong Kong, as well as any individual who is not a U.S. Citizen or U.S. National, including Lawful Permanent Residents and visa holders.
Ownership bar and divestiture: No loan may be made if any direct or indirect owner is an Ineligible Person, and the business remains ineligible unless that person completely divests all ownership prior to the issuance of the SBA loan number, subject to a 6-month lookback rule.

The source

What the SOP says

“SBA financing is limited to business Applicants with 100% direct and/or indirect owners and SBA-required guarantors, all of whom must be U.S. Citizens or U.S. Nationals who have their Principal Residence in the United States, its territories, or possessions.

SOP 50 10 8.1, Chapter 1: Primary Applicant Eligibility Requirements > Citizenship And Residency Requirements (lines 530-532)✓ Verified

“No loan may be made if any direct or indirect owner or SBA-required guarantor is an Ineligible Person.

SOP 50 10 8.1, Chapter 1: Primary Applicant Eligibility Requirements > Citizenship And Residency Requirements (lines 530-532)✓ Verified

“An individual who is a citizen of the People’s Republic of China, or the Special Administrative Region of Hong Kong;

SOP 50 10 8.1, Appendix 3: Definitions > Indirect Export (lines 4326-4335)✓ Verified

“An individual, including a visa holder, who is not a U.S. Citizen, or U.S. National (non-resident aliens);

SOP 50 10 8.1, Appendix 3: Definitions > Indirect Export (lines 4326-4335)✓ Verified

“If a direct or indirect owner is an Ineligible Person, the business is ineligible unless the Ineligible Person completely divests their ownership prior to the date of issuance of the SBA loan number.

SOP 50 10 8.1, Chapter 1: Primary Applicant Eligibility Requirements > Direct/Indirect Owners (lines 533-537)✓ Verified

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