(1) Definitions of Immigration and Naturalization Service (INS) Statuses:

(2) INS Documentation to Evidence an Alien's Status

SBA Form 912, "Statement of Personal History," requires that aliens provide their alien registration number. An alien registration number indicates that the person is in the U.S. legally. It is not evidence of INS status or eligibility for SBA's programs.

Any alien who must complete SBA Form 912 or who owns 20 percent or more of the applicant business must provide current/valid INS documents to lenders or CDCs to determine eligibility.

The INS publication titled "A Guide to Selected U.S. Travel/Identity Documents for Law Enforcement Officers" provides color photographs and facts about the most commonly used authorization documents but is not comprehensive. All SBA field offices and processing and servicing centers should obtain a copy of this publication from the nearest INS office or telephone 800-870-3676. A list of INS offices and suboffices can be found at www.ins.usdoj.gov/graphics/fieldoffices/index.htm.

SBA, lenders, and CDCs must place a photo copy of the individual's documentation in the case file.

(3) Verification of INS Status

Because fraudulent INS documents are a serious problem, lenders and CDCs must verify the INS status of each alien, including LPRs who are required to submit INS documents. You must document the findings in the application package. This applies in all cases, regardless of the processing method or loan programs. SBAExpress is the only exception to this requirement. For loans submitted under SBAExpress, verification of alien status must be completed prior to making any disbursements.

The lender or CDC submits an INS Form G-845 (845), "Document Verification Request," with supporting information to the nearest INS office. INS releases information about the status of an alien to lenders or other non-governmental entities ONLY when a signed and dated authorization from the alien is attached to and submitted with the 845 on that alien. INS requires that authorizations provide the person's name, address, and date of birth. INS accepts either of the following authorization statements:

(4) Legal Permanent Resident-Owned Small Businesses

Immigrants (LPRs) are the ONLY class of aliens residing in the U.S. eligible to obtain financial assistance from SBA without complying with the requirements stated in the paragraph titled "Additional Requirements for Small Businesses in Subparagraphs (5) and (6) of This Paragraph."

The primary document acceptable as evidence of LPR status is INS Form I-551 (551). INS has two versions of the 551. One is titled "Resident Alien Card." The other is titled "Permanent Resident Card." The latter is the most recent version of the 551.

INS requires replacement of the 551 every 10 years to update the photograph and security measures. Replacement may also be necessary if the 551 is lost, the individual changes name, etc. LPR status does not lapse and is not in jeopardy merely because the 551 document lapses.

Replacement may take more than a year. Acceptable forms of evidence when the 551 has been submitted to INS for replacement or has an expired date include the following:

Conviction of criminal activity of a felony nature is the primary basis for termination of LPR status and/or deportation. INS holds administrative hearings to determine whether to impose termination of LPR status and/or deportation.

NOTE: SBA requires that the 551 or an acceptable substitute must be current at the time it is submitted with an application. SBA will return the application without accepting it for processing if the INS documentation is not currently in force.

(5) Small Businesses Owned by Foreign Nationals or Foreign Entities

To be eligible an applicant small business owned by a foreign national or a foreign entity must have a place of business located in the U.S.; operate primarily within the U.S.; pay taxes to the U.S.; and use American products, materials, and labor.

As a result of this, the business and its employees are subject to U.S. and local taxes.

(6) Businesses Owned by Non-immigrant Aliens Residing in the U.S.

Businesses owned by documented aliens may be eligible. They must have current/valid INS documentation permitting them to reside in the U.S. legally. The documentation/status of each alien must be verified with INS. Aliens must comply with the requirements stated in the subparagraph titled "Additional Requirements for Small Businesses in Subparagraphs (5) and (6) of This Paragraph" and meet SBA's other credit and eligibility criteria.

Businesses owned by undocumented (illegal) aliens are not eligible for SBA assistance.

Businesses owned by aliens who are subject to the Immigration Reform and Control Act of 1986 (IRCA) might be eligible under limited circumstances. IRCA invests INS with the authority to grant illegal aliens lawful temporary resident status under its provisions. Some aliens already enjoy this status. INS can grant it to others in accordance with the provisions of IRCA.

IRCA prohibits financial assistance to businesses owned 20 percent or more by such individuals for a period of 5 years after INS grants the alien lawful status.

This disqualification does not apply to Cuban or Haitian entrants or alien entrants subject to IRCA who are aged, blind, or disabled. The definition of blind or disabled is equivalent to SBA's criteria for determining eligibility for assistance to any small business owned by disabled individuals.

All applicants self-certify that they are eligible under IRCA by certifying that they have received and read SBA Form 1261, "Statements Required by Law and Executive Orders." This form includes a certification that IRCA does not apply to them.

(7) Additional Requirements for Small Businesses in Subparagraphs (5) and (6) of This Paragraph

Businesses and their owner(s) in this category must comply with Appendix 3, "Restrictions on Foreign Controlled Enterprises," of this SOP. They MUST also meet the following: