How Foreign Nationals Finance a US Business Purchase in 2026

What changed with SBA eligibility

The SBA tightened citizenship rules in stages. Its updated SOP 50 10 8, effective 1 June 2025, first restricted loans to businesses owned by US citizens, nationals and lawful permanent residents. A further update took effect on 1 March 2026 and now requires 100% ownership by US citizens or nationals whose principal residence is in the United States, according to a 2026 client alert from law firm Dickinson Wright. Green card holders can no longer own even a small share of an SBA borrower.

The rule does not stop non-citizens owning or running US businesses. It means the financing has to come from outside the SBA programmes, usually on shorter terms, at higher rates and with more buyer equity, as BizBuySell has noted. Our page on business acquisition loans for foreign nationals explains how we structure these deals.

Senior debt sources

1. Conventional commercial banks. Regional and community banks still make acquisition term loans without an SBA guarantee. Expect larger equity contributions, shorter amortisation and strong cash flow cover. Our guide to DSCR requirements for acquisition loans explains the coverage banks look for.

2. Banks with international private banking divisions. Several US banks, particularly in Miami, New York and Houston, serve international clients and will lend to those who hold deposits or investment assets with them. The relationship often matters more than the buyer's US credit history.

3. US branches of home-country banks. Many foreign banks operate US branches or subsidiaries that already know the buyer's home-country finances and can underwrite a US acquisition with that context.

4. Community banks and credit unions in immigrant business markets. Lenders rooted in specific diaspora communities are often more comfortable with foreign documentation, home-country credit reports and family-funded equity.

5. Private credit funds. Direct lenders finance acquisitions of larger, profitable companies based on EBITDA and cash flow. They move faster than banks and care less about the buyer's nationality, but price higher. See our list of top private credit funds.

6. Non-bank cash flow lenders. Specialty finance companies serving the lower middle market lend against a target's historical earnings, often where banks will not, in exchange for higher pricing and tighter covenants.

Asset-backed sources

7. Asset-based lenders. Receivables and inventory can support a revolving facility that funds part of the purchase price and ongoing working capital. Our list of the top asset-based lenders in the USA is a useful starting point.

8. Equipment finance companies. Equipment-heavy targets can finance machinery, vehicles and fleets separately from the main acquisition loan. See the top equipment loan providers in the USA.

9. Commercial real estate lenders. When the business owns its premises, the property can be financed with a separate commercial mortgage, reducing the amount the acquisition loan has to cover.

Seller and gap capital

10. Seller notes. The seller defers part of the price and is repaid over time. Senior lenders like seller notes because they keep the seller invested in the transition. Our guide to structuring seller note financing covers the terms lenders accept.

11. Earnouts. Part of the price is paid only if the business hits agreed targets after closing. Earnouts reduce the cash needed at closing and bridge valuation gaps.

12. Mezzanine and subordinated lenders. Junior debt sits behind the senior loan and fills the gap between senior debt and buyer equity. See our list of mezzanine capital providers for buyouts.

13. Preferred and minority equity investors. Family offices and co-investors can provide equity alongside the buyer when the cash requirement is too high. Our page on equity gap funding for acquisitions explains the options.

Buyer-side liquidity

14. Securities-backed lending. Buyers with investment portfolios can borrow against them through a private bank, raising equity without selling assets. The loan sits with the buyer rather than the target.

15. Bridge lenders. Short-term bridge loans can close a deal quickly when permanent financing or equity from abroad is delayed, and are refinanced afterwards. See our guide to bridge loans to close business acquisitions.

Comparison table

What lenders require from foreign buyers

A US acquisition entity and bank account. Lenders expect the buyer to acquire through a US LLC or corporation with an operating US bank account. Our US business bank account service for non-residents can help.

Documented source of funds. The equity contribution must be traceable, with bank statements and evidence of how it was earned.

Credit evidence from home. Without a US credit file, buyers should provide home-country credit reports and bank reference letters.

A credible management plan. Lenders want to see who will run the business day to day, especially if the buyer will not live in the US full time.

A complete credit package. Three years of target financials, tax returns, a quality of earnings view and a clear sources and uses table. Our Lender-Ready Package prepares exactly this, and our checklist of documents needed for an acquisition loan lists the rest.

Frequently asked questions

This article is general information only and is not legal, tax, immigration or investment advice. SBA eligibility rules are summarised from the third-party sources linked and may change. Financely is an advisory and arranging firm, not a lender or broker-dealer. Any financing is subject to lender underwriting, due diligence, KYC and AML checks, credit approval, documentation and conditions precedent. No outcome or timeline is guaranteed.