QUESTION 01Who meets the SBA ownership rule effective March 1, 2026?
For SBA 7(a) and 504 lending under the policy effective March 1, 2026, 100% of every direct and indirect owner of the applicant business must be a U.S. citizen or U.S. national whose principal residence is in the United States, its territories, or possessions. A green card or employment authorization alone does not meet this ownership rule, and legal permanent residents may not own any percentage of the applicant or related entities covered by the notice. The lender must confirm eligibility under the rules in force when the application is submitted.
QUESTION 02What does SBA prequalified mean on a listing?
It generally means a lender or financing professional has performed a preliminary review of specified business information and believes the opportunity may fit an SBA-backed acquisition structure. It is not a loan commitment and does not approve a particular buyer. Final approval depends on complete underwriting of the borrower, business, transaction, collateral where applicable, and current program requirements.
QUESTION 03How much cash does a buyer need for an SBA acquisition?
The required equity injection varies with the transaction, borrower, lender, financing structure, seller participation, and current SBA requirements. Buyers should not assume that one percentage applies to every deal. Available liquidity must also account for closing costs, working capital, professional fees, and post-closing reserves.
QUESTION 04What documents will a lender commonly request?
Requests commonly include personal financial information, tax returns, resumes, ownership details, source-of-funds evidence, business tax returns and financial statements, debt schedules, purchase documents, lease information, projections, and explanations of unusual items. The exact checklist depends on the lender and transaction. Early preparation reduces avoidable delays but does not guarantee approval.
QUESTION 05What financing may be considered when a buyer is not SBA-eligible?
Alexey can introduce independent lenders that may consider unsecured acquisition financing, including programs with five- or seven-year terms, for some green-card holders or buyers with valid work authorization. In some cases pricing may be competitive with SBA financing, but APR, fees, loan amount, term, collateral requirements, and approval depend on the lender, borrower, transaction, and market at that time. No rate comparison, term, or approval is guaranteed.
