Key Takeaways
- L-1A executives who own equity in their US employer entity are now ineligible for SBA loans as of March 2026
- L-1B specialized knowledge workers with business stakes are equally blocked under the new rule
- Bankable evaluates business revenue, not visa category or citizenship status
- Revenue-based funding decisions delivered in 48 hours—no immigration verification required
- Minimum $150K annual revenue qualifies L-1 business owners for up to $5M in Bankable funding
L-1 visa holders come to the United States as intracompany transferees—executives, managers, or specialized knowledge workers transferred from a foreign affiliate, subsidiary, or parent company. Many hold equity stakes in the US entity they manage. Some have built their own US businesses alongside their employment. As of March 1, 2026, any L-1 holder who owns 20% or more of a US business entity is categorically ineligible for SBA 7(a) or SBA 504 loans.
SBA vs. Alternatives: 2026 Comparison
| Option | Citizenship Required | Amount | Decision Time | Approval Rate |
|---|---|---|---|---|
| SBA 7(a) | Yes (100% US citizen/national as of March 2026) | Up to $5M | 30-90 days | Blocked for non-citizens |
| Traditional Banks | Usually required | Varies | 30-60 days | ~20% for non-citizens |
| CDFIs | No (limited capacity) | Up to $250K | 2-4 weeks | 50-60% |
| Bankable (Revenue-Based) | No citizenship required | Up to $5M | 48 hours | 92% revenue-qualified |
How L-1 Holders Are Affected by the March 2026 SBA Rule
The impact varies by L-1 subcategory and business structure:
- L-1A executives who own equity in the US entity they transferred to are directly blocked. Many L-1A holders have a financial stake in the US subsidiary or branch they manage.
- L-1B specialized knowledge workers who have invested in side businesses while on L-1 status are now blocked from accessing SBA capital for those ventures.
- L-1 to EB-1C pathway holders who are building businesses in preparation for a green card transition face a critical gap period where SBA was their planned capital source.
The L-1 to EB-1C Gap Problem
One of the most common paths from L-1 status to permanent residency runs through the EB-1C (multinational executive) green card. During the years-long waiting period for EB-1C processing, L-1 holders often needed business capital to maintain and grow the enterprises that would qualify them for the green card. SBA loans were a key funding tool during this interim period. The March 2026 rule removed this option at exactly the moment when many L-1 holders were relying on it.
Bankable's Approach for L-1 Business Owners
Bankable's underwriting is built around business performance metrics, not immigration categories. An L-1 holder with a business generating $500K annually in revenue with consistent cash flow will receive the same underwriting treatment as any other business owner at that revenue level. We advance capital based on demonstrated ability to repay—which is a function of revenue, not immigration status.
For L-1 holders who are executives or managers of established companies: your business's revenue history, operating tenure, and growth trajectory are the foundation of your Bankable application. Check your Bankability Score to see your funding range.
Revenue-Based Funding vs. SBA Loans for L-1 Holders
SBA 7(a) loans offered rates tied to the prime rate with long repayment terms. Revenue-based funding has different characteristics: payments flex with revenue (protecting you in slow periods), approval happens in 48 hours rather than 60-90 days, and there is no citizenship hurdle. For L-1 holders who need capital now rather than months from now, this trade-off often makes sense.
Contact Bankable at (786) 443-5511 to discuss your specific L-1 business structure and funding needs. Our analysts work with intracompany transferees regularly and understand the business structures that are common in L-1 situations. Learn more about our capital products here.
Frequently Asked Questions
Yes, from private lenders including Bankable. The SBA blocked L-1 holders with business ownership on March 1, 2026, but Bankable offers revenue-based funding up to $5M with no citizenship requirement.
It applies to L-1 holders who own 20% or more of a US business entity. L-1 holders who are pure employees with no ownership stake are not directly affected, though their employers may be if those employers are owned by non-citizens.
Bankable's revenue-based tranche funding is the fastest and highest-capacity alternative. CDFIs provide lower-cost supplementary capital up to $250K. Equipment financing is available for asset-backed needs.
It doesn't. Bankable evaluates business revenue, operating history, and financial trajectory. Immigration status is not part of our underwriting criteria.
Yes. Bankable works with business owners across the entire immigration timeline. Your current visa status does not determine your eligibility for our funding.
$150K minimum annual revenue and 12 months in business are the primary thresholds for Bankable's standard tranche funding program.
Revenue-based funding typically carries a higher effective cost than SBA-guaranteed loans, which benefited from government backing. However, it is available immediately, requires no citizenship, and approvals take 48 hours versus months for SBA.
Only if the US citizen holds 100% of the ownership interest. If the L-1 holder retains 20% or more of equity, the application is disqualified under the March 2026 rule.
Subsidiaries wholly owned by foreign corporations face additional SBA restrictions beyond citizenship. Bankable has no restrictions on business ownership structure.
Complete the 5-minute online application at bankablefunds.com/bankability-score/ with your business bank statements and EIN. No immigration documentation required. Decision within 48 hours.