✅ TL;DR (Too Long; Didn’t Read)
No, a foreign corporation by itself cannot qualify for an SBA 7(a) loan.
To be eligible:
The borrowing entity must be a U.S.-based business
At least 51% of ownership must be held by a U.S. citizen or lawful permanent resident (green card holder)

🧠 Full Answer
The SBA 7(a) loan program is designed to support small businesses in the U.S. that are owned and operated by U.S. persons.
🔒 Basic Eligibility Requirements:
Business must be legally registered and operate in the United States
At least 51% ownership must be by U.S. citizens or lawful permanent residents
Business must be for-profit
Must demonstrate repayment ability (which you already noted — DSCR is solid)
So if your acquiring entity is a foreign corporation, it doesn’t qualify on its own.

🛠️ What You Can Do Instead (Solution):
Form a U.S. entity
Set up a new U.S.-based LLC or corporation.

Bring in a U.S. partner (at least 51%)
This can be an individual or group of individuals who are U.S. citizens or permanent residents.
They must truly hold ownership — not just on paper — and be involved in management.
Structure the acquisition under this new U.S. entity
The new U.S. entity becomes the borrower
The SBA lender will review ownership, business plan, acquisition details, and personal guarantors
Work with an SBA-approved lender to get pre-qualified
Choose a bank or non-bank SBA lender
Share financials of target business (including DSCR)
Prepare a business plan, buyer resume, and personal financial statements for U.S. owners

🔍 What Was Missed or Oversimplified Before
The previous answer was correct but incomplete. It said:

"No. The business needs to be registered in the USA and at least one majority owner (ex. 51%), should be a legal resident or citizen of the USA."

✅ That’s true — but it left out what steps to take if you are currently a foreign corporation and still want to move forward.
🧭 Final Word
You can’t use a foreign entity to apply — but you can:
Form a new U.S. company
Structure ownership to meet SBA rules
Partner with a qualified U.S. co-owner
Apply through a lender who specializes in SBA 7(a) acquisitions
Hope this helps.