@chriscanal Thank you for providing the full context. Based on your clarification, my previous comment was founded on an incorrect assumption.
I apologize.
As someone who is fundamentally driven by the question "What is right?", my judgment of your motives, made without knowing the full facts of your situation (specifically the SBA policy and your co-founder's status), was, in itself, not right.
I was wrong to frame your funding as a simple "disguised loan" based on preference. The reality you described—that you were denied access to traditional financing due to arbitrary, nationalistic filters—is a critical piece of information I did not have.
This new information, however, only deepens my core critique of the system itself.
My original point was that the funding ecosystem filters for 'domesticated signals' (legible infrastructure) over 'ungovernable' R&D. Your story provides an even more stark example: the system is so dysfunctional that it applies bureaucratic, nationalistic filters to exclude even the proven, 'domesticated' projects like yours.
If a profitable, established company is forced to give up equity (via a SAFE) simply because of a co-founder's passport, it proves my point more strongly than I could have imagined: This ecosystem does not run on merit; it runs on arbitrary filters.
Thank you again for sharing your reality. It has clarified the true, and more severe, nature of the dysfunction we are all operating in.