The New Financing Bottleneck in Small Business M&A: What Buyers and Sellers Need to Know About SBA's 2026 Ownership Rules
Effective March 1, 2026, the SBA requires 100 percent U.S. citizen ownership for 7(a) and 504 loans, with a six-month lookback. Green card holders are ineligible. Lower middle market buyers and sellers should confirm eligibility before signing LOIs, not after diligence has begun.

