SBA stops loans to businesses not fully owned by US citizens
8 reported1 unconfirmed
The U.S. Small Business Administration (SBA) has stopped approving loans to firms that are not fully owned by U.S. citizens, a policy change that took effect in March. This marks the first time in the agency’s history that it has restricted lending to only citizen-owned businesses. The change is part of the Trump administration’s broader push to discourage immigration, with the SBA joining other agencies in limiting noncitizen access to federal programs. SBA head Kelly Loeffler has stated the loans are for American citizens and that the agency is “unapologetic about it.” The policy affects lawful permanent residents, also known as green-card holders, who previously qualified for SBA loans. Of all SBA loans last year, 4% went to businesses involving permanent residents. Some Democrats in Congress have introduced a bill to restore eligibility for legal permanent residents.
What’s reported
The SBA stopped approving loans to firms not fully owned by U.S. citizens in March.
This is the first time in SBA history that lending has been restricted to citizen-owned businesses only.
Of all SBA loans last year, 4% went to businesses involving permanent residents.
SBA head Kelly Loeffler told Newsmax in March: “SBA’s small-business loans are for American citizens, and we’re unapologetic about it.”
Loeffler cited an audit that found and stopped a six-figure loan approved for a business 49% owned by an immigrant without legal status.
SBA spokesperson Maggie Clemmons said the rule change will help ensure more American citizens have access to funding previously granted to noncitizens.
Sen. Ed Markey of Massachusetts and Rep. Nydia Velazquez of New York introduced a bill to restore eligibility of legal permanent residents for SBA loans.
Eight business owners who are legal permanent residents and had received or applied for SBA loans this year declined to speak to NPR on the record.
Open questions
The potential impact of the policy on future job and business creation in the U.S. is not addressed by the SBA, which did not respond to NPR’s questions on that topic.
Key figures
Sayuri Tsuchitani – green-card holder and entrepreneur who opened a Japanese head spa with an SBA loan
Eda Henries – small-business advisor who helps firms raise and manage funds
Kelly Loeffler – head of the SBA
Maggie Clemmons – SBA spokesperson
Cristina Foanene – citizen and owner of a glass company in Fresno, Calif., who received three SBA loans
Sen. Ed Markey of Massachusetts – introduced bill to restore eligibility
Rep. Nydia Velazquez of New York – introduced bill to restore eligibility
Sources: NPR
