U.S. restricts SBA loans to citizen-owned businesses only
7 reported
The U.S. Small Business Administration (SBA) has stopped approving loans to businesses 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 its 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 the loans are for American citizens and 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 a small-business adviser.
What’s reported
The SBA stopped approving loans to businesses 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.”
An audit found 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.
Sen. Ed Markey and Rep. Nydia Velázquez introduced a bill to restore eligibility for legal permanent residents.
Eight business owners who are legal permanent residents declined to speak to NPR on the record.
Key figures
Sayuri Tsuchitani, green-card holder and Japanese head spa owner
Eda Henries, small-business adviser
Kelly Loeffler, SBA Administrator
Maggie Clemmons, SBA spokesperson
Cristina Foanene, glass company owner and naturalized citizen
Sen. Ed Markey of Massachusetts
Rep. Nydia Velázquez of New York
Sources: NPR
