For years, Small Business Administration (SBA) loans have been a reliable funding source for entrepreneurs looking to buy or expand businesses in the U.S. These loans were especially popular for foreign nationals investing in U.S.-based ventures—until now.
As of 2025, SBA loans are no longer available to foreign nationals who are not U.S. citizens or lawful permanent residents. Today, businesses applying for SBA loans must have 100% of their direct and indirect owners, loan guarantors, and key employees (like top-level managers) who are U.S. citizens, U.S. nationals, or lawful permanent residents (LPRs).
This significant change has real consequences for business transactions across the country—especially in sectors where foreign investors have historically played a major role.
Why This Matters
SBA loans provided foreign entrepreneurs with access to low-interest, government-backed financing to purchase existing businesses or launch new ones. These loans were often used in E-2 visa cases and other business-based immigration strategies.
Now, with foreign nationals cut out of the SBA loan market, many buyers can no longer access the funding they expected—which is having a ripple effect across the small business marketplace.
The Impact on Business Sales
The consequences of this change are already showing up in business sale negotiations:
- Reduced Buyer Pool: Sellers now face a smaller pool of qualified buyers, especially in popular visa-targeted sectors like hospitality, retail, logistics, and service-based franchises.
- Longer Time on Market: Businesses that once attracted foreign buyers with SBA loan pre-approvals are now lingering on the market due to financing limitations.
- Falling Valuations: Some sellers are being forced to lower asking prices or offer seller financing to close deals that previously would have been funded through an SBA loan.
- Increased Risk for Buyers: Foreign buyers without access to SBA loans may turn to unverified lenders or invest more of their personal capital—raising financial risk and increasing pressure on early profitability.
Alternative Funding Options for Foreign Buyers
While the loss of SBA loan access is a major hurdle, there are still other ways for foreign nationals to fund a U.S. business purchase or startup. Here are a few:
1. Private Loans or Lenders
Private lenders may offer flexible terms to foreign buyers, but they often come with higher interest rates and stricter collateral requirements. Due diligence is essential, as this market is less regulated.
2. Seller Financing
In many cases, business sellers are now open to financing part of the sale themselves. This can benefit both parties—buyers gain access to capital, and sellers close deals faster. However, terms vary, and legal guidance is key.
3. Investment from Friends or Family
Some foreign nationals turn to personal networks to raise capital through partnerships, co-investors, or loans. This approach can work if structured properly, but it’s critical to document everything and comply with immigration requirements.
4. Home Country Funding
Certain foreign investors may qualify for business loans or grants in their home country that can be used toward a U.S. investment. Coordination with local banks and currency exchange policies is necessary.
5. Structured Business Partnerships
Some buyers are forming strategic partnerships with U.S. citizens or permanent residents who can qualify for SBA loans. These structures must be carefully reviewed to avoid immigration or legal complications, but they can open doors to funding otherwise out of reach.
What This Means for You
Whether you’re a foreign national planning to invest in a U.S. business—or a business owner preparing to sell—you can’t afford to overlook the funding shift caused by the SBA policy change. Business models and deal structures that worked a year ago may now require significant adjustments.
At Visa Business Plans, we help both investors and attorneys assess funding viability, structure strong business plans, and adjust business models to fit today’s evolving landscape.
Final Thoughts
The SBA loan market may be closed to foreign nationals, but opportunities still exist. What matters now is strategy—knowing how to present a viable business plan, exploring the right funding alternatives, and structuring deals that satisfy both immigration and financial requirements.
Contact us today to discuss how we can help you build a solid, realistic business plan—one that’s tailored to today’s funding environment and ready to support your goals, with or without SBA loans.
Contact us today to get started
The information provided in this blog is intended solely for informational purposes. While we strive to offer accurate and up-to-date content, it should not be considered legal advice. Immigration laws and regulations are subject to change, and individual circumstances can vary widely. For personalized guidance and legal advice regarding your specific immigration situation, we strongly recommend consulting with a qualified immigration attorney who can provide you with tailored assistance and ensure compliance with current laws and regulations.
Visa Business Plans is led by Marco Scanu, a certified coach from the University of Miami with a globally-based practice coaching Fortune 1000 company executives, entrepreneurs, as well as professionals in four different continents. Mr. Scanu advises clients on turnaround strategies and crisis management.
Mr. Scanu received a bachelor’s degree in Business Administration (Cum Laude) from the University of Florida and an MBA in Management from Bocconi University in Milan, Italy. Mr. Scanu was also a Visiting Scholar at Michigan State University under the prestigious H. Humphrey Fellowship (Fulbright program) with a focus on Entrepreneurship, Venture Capital, and high-growth enterprises.
At present, Mr. Scanu is the managing partner and CEO at Visa Business Plans, a Miami-based boutique consulting firm providing attorneys and investors with business planning services in the areas of U.S. and Canadian immigration, SBA loans, and others.
If you are looking for any of the following, we can help you!
EB-5 Visa Business Plans
EB5 Business Plans
L1A Business Plans
L Visa Business Plans
L-1 Visa Business Plans
E2 Business Plans
E2 Visa Business Plans
E1 Business Plans
E1 Visa Business Plans
Business Plan for Investor Visa
Business Plans for Immigration
Business Plan for Visa Application
Market Analysis
Feasibility Studies
Investor Visas Business Plans
NIW Business Plans
NIW Personal Endeavor Plan
NIW Personal Statement
EB-2 Visa Business Plans
Visa Business Plans
[32].png)
[45].png)