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SBA rules · SOP 50 10 8.1

Can a DACA recipient get an SBA loan?

No, an individual with Deferred Action for Childhood Arrivals (DACA) status cannot qualify as an owner or required guarantor for an SBA loan.

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

In detail

  • Ineligible Person status: SBA explicitly defines an "Ineligible Person" to include individuals under Deferred Action for Childhood Arrivals (DACA).
  • Ownership restriction: SBA financing is restricted to businesses with 100% direct and indirect owners who are U.S. Citizens or U.S. Nationals, and no loan may be made if any direct or indirect owner is an Ineligible Person unless that person completely divests ownership prior to loan number issuance.
  • Guarantor restriction: If any SBA-required guarantor is an Ineligible Person, the business applicant is ineligible; an Ineligible Person may only sign a limited guaranty when required by the lender or SBA to support a pledge of jointly held collateral.

The source

What the SOP says

“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);
SOP 50 10 8.1, Appendix 3: Definitions > Indirect Export (lines 4326-4335)✓ Verified
“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
“Direct/Indirect Owners: 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
“Guarantors (including Supplemental and Limited Guarantors): If any SBA-required guarantor (including an OC for a project structured as an EPC/OC), including direct and indirect owners, are Ineligible Persons, the Applicant is ineligible, with the following exception for limited or supplemental guaranties. When a limited or supplemental guaranty is required by the Lender for their approval, or by SBA to support the pledge of jointly held required collateral, an Ineligible Person (except for undocumented aliens who are in the U.S. illegally) may provide a limited guaranty.
SOP 50 10 8.1, Chapter 1: Primary Applicant Eligibility Requirements > Direct/Indirect Owners (lines 533-537)✓ Verified

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Related reading

This page quotes the SBA's Standard Operating Procedure 50 10 8.1. Lenders can ask for more than the SBA minimum. It is general information, not a loan approval or legal advice.