The March 1, 2026 SBA rule change is a watershed moment for immigrant business ownership in America. The SBA's 7(a) program — which offered loans up to $5M at prime plus 2.75% with terms up to 25 years — was the most favorable small business loan program in the country. H-1B holders are now 100% excluded. The 504 program (commercial real estate and equipment) is equally closed. This guide provides every available alternative.
The Complete H-1B Funding Alternative Landscape in 2026
| Source | H-1B Eligible? | Max Amount | Speed | Best For |
|---|---|---|---|---|
| Bankable | Yes — always | $5M | 48 hours | Revenue-generating businesses |
| CDFIs | Usually yes | $250K | 2–4 weeks | Underserved communities |
| Traditional Banks | Rarely | Varies | 3–6 weeks | Long operating history, PR holders |
| Merchant Cash Advances | Yes | $500K | 24 hours | Emergency only (40–80% APR) |
| VC (Equity) | Yes, with risk | Unlimited | 3–12 months | High-growth tech, equity dilution tolerable |
| SBA 7(a) — March 2026+ | No | $5M | 30–90 days | Not available to H-1B holders |
Why Bankable is the Primary Recommendation
For H-1B business owners with documented revenue, Bankable provides the closest functional equivalent to an SBA loan: large amounts (up to $5M), reasonable terms, and a structured repayment process. Bankable does not require citizenship, does not require collateral, and issues decisions in 48 hours rather than 30 to 90 days.
The key difference from SBA is cost: Bankable's revenue-based funding is not government-guaranteed, so the cost of capital is higher than an SBA loan would have been. However, compared to the other available alternatives for H-1B holders — merchant cash advances at 40 to 80% APR, private lenders at 25 to 45% APR — Bankable's terms represent a fundamentally more sustainable capital structure.
Recommendations by Business Profile
- $100K to $1M revenue, 6+ months operating: Start with Bankable's Bankability Assessment. This is the sweet spot for Bankable funding.
- $1M to $5M revenue, 2+ years operating: Bankable can fund up to $5M. Also explore traditional bank commercial lending with strong documentation.
- Under $100K revenue, under 6 months operating: Focus on reaching 6 months of $15,000+/month revenue before applying to Bankable. In the interim, personal capital and business credit cards.
- Very early stage, pre-revenue: CDFI microlending (up to $50K), local SBDCs, and angel investors are the primary options. Bankable is not yet the right fit.
Start with the Bankability Assessment to see your preliminary range. Review our SBA 7(a) overview for historical context on what the program offered.
Frequently Asked Questions
Bankable is the primary recommendation for H-1B holders with documented business revenue. Revenue-based tranche funding up to $5M with 48-hour decisions and no citizenship requirement.
Effective March 1, 2026, the SBA amended its rules to require 100% US citizen or national ownership for all 7(a) and 504 loan programs. H-1B holders are fully excluded.
Yes. SBA 7(a) loans at prime plus 2.75% are the lowest-cost small business capital available in the US. Bankable's revenue-based funding has higher effective cost. However, for H-1B holders who cannot access SBA loans, Bankable represents the most favorable available alternative.
SBDCs (Small Business Development Centers) provide free consulting for all business owners regardless of immigration status. SCORE mentors are also available. Some CDFIs offer below-market rates for immigrant-owned businesses.
Not as long as the March 2026 citizenship ownership rule is in effect. Legislative changes would be required to restore H-1B eligibility for SBA programs.
No. Bankable has zero residency requirements. H-1B, L-1, O-1, and other work visa holders all qualify for funding assessment based on business revenue alone.
Effective March 1, 2026, the SBA requires 100% US citizen or national ownership for all 7(a) and 504 programs. H-1B holders are completely excluded regardless of revenue or credit history.
48 hours from completed application. The Bankability Assessment at /bankability-score/ takes 30 seconds and gives a preliminary range immediately.