It does, although of the top of my head I don't recall any scenarios specifically using them. You'd have to make a custom OOB or edit an existing one to include them...
From the User's Manual:
Quote:Certain games in the Squad Battles series support the Civilian feature. Under this feature, certain units can be identified as Civilians using the Scenario Editor. Civilians are typically portrayed in a scenario as being hostages of the opposing side and the purpose of the scenario is to rescue the hostages. Civilian units that are stacked with enemy units are automatically considered Captured. If the enemy units that they are stacked with are eliminated or forced to retreat as a result of assault, then the Civilian units are able to be moved by the owning player. In a scenario that uses Civilians, points are awarded for the release of Civilians held as hostage and points can be awarded for exiting them from the map via Exit Objectives. Civilians have a reduced movement factor, cannot hold or fire weapons, and cannot use ropes or ladders to board or leave flying helicopters.
I cannot recall which games have been updated to include the Civilian feature, however.