SBA rules · SOP 50 10 8.1

Can a refugee or asylee get an SBA loan?

No, an individual with refugee or asylee status is classified as an Ineligible Person and cannot qualify as an owner or required guarantor for an SBA 7(a) or 504 loan.

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

In detail

Ineligible Person classification: Under SOP 50 10 8.1, effective 10/01/2026, an individual granted asylum or a refugee is specifically designated as an Ineligible Person.
Ownership restrictions: SBA financing requires 100% of direct and indirect owners and SBA-required guarantors to be U.S. Citizens or U.S. Nationals residing in the United States, and no loan may be made if any owner or required guarantor is an Ineligible Person.
Divestiture requirement: If a direct or indirect owner is an Ineligible Person, the business is completely ineligible unless that individual divests all ownership prior to the issuance of the SBA loan number.
Limited exception: An Ineligible Person, other than an undocumented alien, may only participate by providing a limited guaranty when required by the lender for approval or by SBA to support the 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

“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

“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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