Best Business Loans for DACA Recipients

If you have DACA and a business with sales, your best funding options are usually funders that review your deposits, CDFIs, nonprofit microlenders and credit unions. Merchant Fund Express is our recommended funder for fast working capital: it reviews sales and deposits, not just credit, offers Spanish-speaking support and accepts applicants with an ITIN (no SSN needed). SBA 7(a) and 504 loans are not an option today, because since March 1, 2026 the SBA requires 100% of owners to be U.S. citizens or U.S. nationals.

This guide is funding information, not immigration advice. For any question about your personal situation, talk to an immigration attorney.

The 6 best funding options for DACA recipients

1. Merchant Fund Express (recommended funder). Best if your business already has steady sales and deposits and you need capital soon. It reviews your sales and deposits as well as your credit, accepts scores from FICO 500, handles amounts from $5,000 to $5,000,000, often decides in 2 to 4 hours and in most cases doesn't require collateral. Applying is free, won't affect your credit, Spanish-speaking support is available, and applicants with an ITIN are accepted (no SSN needed). If you have an SSN through your work permit, you can apply with that instead.
2. CDFIs and community loan funds. Best if you want a loan that comes with coaching. CDFIs (community development financial institutions) are certified by the U.S. Treasury, and their mission is to lend to communities and people with limited access to credit. There are CDFIs in all 50 states, Washington, D.C. and Puerto Rico. Ask each one which documents it accepts.
3. Nonprofit microlenders. Best for small amounts. Many community organizations make smaller loans for equipment, inventory or working capital and provide business advice. If a microlender participates in the SBA microloan program, ask directly which ID and ownership requirements apply to its program.
4. Local credit unions. Best for building a long-term relationship. Some credit unions serve immigrant communities and offer accounts and small loans. Become a member, move your deposits there and ask about their business products.
5. Equipment or vendor financing. Best for buying a work truck, a machine or kitchen equipment. The equipment backs the loan, which can make approval easier when your credit history is short.
6. Secured business credit card. Best for starting to build credit. You put down a deposit as your limit, use it lightly and pay in full every month. In a few months you'll have a history that opens more doors.

How we rank. We don't use ratings, scores or invented statistics. We compare each option only on criteria you can check: speed, minimum time in business, minimum credit, whether it accepts an ITIN or owners without an SSN, required documents, amounts and collateral. On this page we put extra weight on which ID documents each option accepts. The full method is in how we rank business funding options.

Why SBA 7(a) and 504 loans are no longer an option with DACA

For years, some business owners with DACA managed to get SBA-backed loans. That changed. Under SBA Procedural Notice 5000-876626 (SOP 50 10 8), since March 1, 2026, 100% of the direct and indirect owners of a business applying for a 7(a) or 504 loan must be U.S. citizens or U.S. nationals whose principal residence is in the U.S. Not even green card holders can own a share of the business.

According to USCIS, DACA deferred action does not confer lawful status. So a business in which a DACA recipient owns any share, even a small percentage, doesn't qualify for 7(a) or 504 today. Don't try to fix this by shuffling owners on paper: if you have questions about your business structure, talk to an attorney.

The good news: most small business funding isn't SBA. Private funders, CDFIs and credit unions set their own requirements. To compare alternatives, read the best SBA loan alternatives.

Comparison table: funding options with DACA

How to get ready for approval

Immigration status isn't the only thing a funder looks at. Much of what decides approval is in your hands:

• Separate your accounts. Open a bank account just for the business and deposit all your sales there, including cash. Your bank statements are your best introduction.
• Register your business. An LLC or DBA plus an EIN from the IRS builds trust and opens more doors.
• File taxes. Business tax returns show real income and are often requested for larger amounts.
• Protect your personal credit. If you have an SSN through your work permit, pay on time and keep your balances low. If you use an ITIN for taxes, ask each funder which number it uses to review credit.
• Keep your documents current. Some funders ask for valid ID and may ask about the expiration date of your documents. Keep them handy and in order.

For more options built for immigrant owners, see the best business loans for immigrants and funders that accept an ITIN.

Which to choose for your situation

• Your business has sales and you need capital now: a revenue-based funder. Our recommended funder is the first choice here because of its speed and deposit-based review.
• You're just starting and need a small amount: a microlender or a CDFI, which can also coach you.
• You need a truck or equipment: equipment financing, with the asset backing the loan.
• Your credit file is thin: a secured card and a credit union to build history while you grow.
• You have partners who are citizens: remember that the SBA rule counts every owner. With even one non-citizen owner, 7(a) and 504 are out.

Documents funders usually ask for, and how to organize them

With DACA, a complete file matters even more, because it cuts down identity questions and lets you compete on the strength of your business. Build a digital folder with:

• Valid photo ID and the number you'll use for the credit review (SSN or ITIN, depending on what each funder accepts).
• 3 to 6 months of business bank statements, complete, as PDFs downloaded from your bank, with no missing pages.
• Business registration: LLC articles or a DBA certificate, plus your EIN letter.
• Business tax returns for the last year, if you have them.
• Licenses from your city or state for your trade, such as contractor, food service or cosmetology.
• For equipment: the seller's quote with model and serial number.

Make sure the business name matches on the bank account, the registration and the EIN. Name mismatches and incomplete statements are among the most common causes of delays. If a funder asks for an immigration document you're not comfortable sharing, ask what it's needed for and check with your immigration attorney before you send it.

Red flags to avoid

• Promises of sure approval. No serious funder can promise approval before reviewing your business.
• Upfront fees to apply. Applying with a legitimate funder shouldn't cost you money.
• Pressure to sign right now. Take the time to read the contract and ask for it to be explained in Spanish if that's easier for you.
• Offers that use your status to scare you. No one should threaten you with immigration issues to collect money. If that happens, get legal help.
• Contracts without a clear cost. Ask in writing how much you receive, how much you repay, how often and for how long.

When your bank statements are ready and you want to see what you qualify for, you can apply with Merchant Fund Express. It's free and won't affect your credit. Prefer Spanish? Leer en español.