SBA stops loans to businesses not fully owned by U.S. citizens
7 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 lawful permanent residents, or green-card holders, are disqualified from SBA loan programs. The change is part of a broader Trump administration effort to limit noncitizens’ access to federal programs. SBA Administrator Kelly Loeffler has stated that the loans “are for American citizens,” and the agency has cited an audit that found one six-figure loan approved for a business partly owned by an immigrant without legal status. Some Democrats in Congress have introduced a bill to restore eligibility for legal permanent residents. The policy has already affected businesses in the middle of loan underwriting, according to small-business adviser Eda Henries. Eight business owners who are legal permanent residents declined to speak to NPR on the record for fear of drawing attention to their immigration status.
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 lawful permanent residents are disqualified.
SBA Administrator Kelly Loeffler said the loans “are for American citizens, and we’re unapologetic about it.”
The SBA cited an audit that found and stopped one six-figure loan approved for a business 49% owned by an immigrant without legal status.
Of all SBA loans last year, 4% went to businesses involving permanent residents.
A group of Democrats, including Sen. Ed Markey and Rep. Nydia Velázquez, introduced a bill to restore eligibility for legal permanent residents.
Small-business adviser Eda Henries reported that lenders have put brakes on deals for clients who are legal permanent residents.
Open questions
The SBA did not respond to NPR’s questions about the potential impact of its policy on future job and business creation in the U.S.
Key figures
Sayuri Tsuchitani, green-card holder and Japanese head spa owner in Los Angeles
Eda Henries, small-business adviser
Kelly Loeffler, SBA Administrator
Maggie Clemmons, SBA spokesperson
Cristina Foanene, glass company owner in Fresno, Calif., now a U.S. citizen
Sen. Ed Markey of Massachusetts
Rep. Nydia Velázquez of New York
Sources: NPR
