December 12, 2019

The Process for Verifying Non-Citizen, Non-Resident Applicants for SBA Loans

Recently we have received a number of loans with one or more guarantors who are not U.S. citizens. Many lenders do not know that they must submit and complete an immigration and citizenship status verification request prior to submission to the SBA or prior to securing a loan number for processing purposes. This request must come from the lender, not from the lender service provider, and must be accompanied by required forms and documentation.

To complete the request, the lender must first register all designated personnel with the Sacramento Loan Processing Center (SLPC). To register, email the office at Sacramento504Register@sba.gov and they will send instructions to complete that process.

Once registered, the lender will work with the borrower to complete form G-845 and gather all supporting documentation including visas, passports, immigration or citizenship paperwork, and any other relevant information that can help certify that the details provided are true and correct. Verification will only be released to a lender if the request is accompanied by a statement of authorization from the borrower/alien. The SBA and USCIS require one of the following statements as authorization along with an original signature from the alien:

“I authorize the U.S. Citizenship and Immigration Services to release information regarding my immigration status to [name of Lender], because I am applying for a U.S. Small Business Administration loan.

“I authorize the U.S. Citizenship and Immigration Services to release alien verification information about me to [name of Lender], because I am applying for a U.S. Small Business Administration loan.”

The verification and all supporting documentation must remain intact with the original loan file for auditing purposes by both the SBA and USCIS.

For long-term permanent residents (LPR), the SBA also specifies that:
Verification of the status of an LPR is required if 6 months has elapsed since the last verification with one exception: if the individual reported an offense on SBA Form 912, then verification would be required even if 6 months had not elapsed, as the offense may put their status at risk. For non-LPRs, verification is required with each loan application, as their status can be revoked at any time.

Details and documentation on this process can be found in the SOP 50 10 5(K) Subpart B pages 120-121. Again, it is the responsibility of the lender to secure this authorization prior to securing a loan number for processing with the SBA. If you have any questions about this, you can contact us.

About Ken Olson, Regional Manager

Ken Olson has over 45 years of SBA experience. Ken began his career with the U.S. Small Business Administration, managing SBA lending programs, economic development, and marketing. Since 2006, Ken has served as a consultant helping financial institutions add SBA loans to their product offerings. At Capital Growth Solutions, Ken helps onboard lenders who wish to leverage an LSP for the SBA lending needs as well as serving as an educational resource to staff and partners.

Leave a Reply

Your email address will not be published. Required fields are marked *