Can An Individual With An E-2 Visa Acquire A Business With An SBA 7(a) Loan?

My SBA Loan Pro

E-2 Visa Eligiblity

Yes, E-2 non-immigrant visa holders are eligible to obtain an SBA guaranteed loan to acquire a business. However, there are several specific eligibility tests that must be met by management for the applicant business to be considered eligible.

1. The Application must contain assurance that management is expected to continue in place indefinitely and have future U.S. citizenship or verified permanent resident status.
2. The non-immigrant visa holder must have been a member of management for one year prior to the loan. So yes non-immigrant visa holders are eligible for a business loan but not for acquisition unless they have been a member of management prior, which is more akin to a partner buyout and not a new acquisition.
3. The Lender must require a personal guarantee from an eligible manager other than the non-immigrant visa holder.
4. Effective April 1, 2019, the Applicant must pledge collateral within the jurisdiction of the U.S. with a liquidation value equal to no less than the approved loan amount at the time of first disbursement and, to the extent that the value of collateral declines during the life of the loan, the Lender must require the Borrower to pledge additional collateral to ensure a sufficient collateral coverage amount.

In conclusion, if an applicant business owned by foreign nationals, foreign entities or non-immigrant aliens residing in the U.S. does not have sufficient collateral, the Applicant is not eligible for an SBA-guaranteed loan.

My SBA Loan Pro

The My SBA Loan Pro Podcast is hosted by Your SBA Loan Pro, Ryan Smith. In each episode Ryan provides valuable information and best practices regarding the SBA loan program.

Each episode is approximately one minute in length and addresses topics related specifically to SBA 7(a) and 504 loan programs to purchase real estate, acquire a business or franchise and obtain working capital.

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