The US Small Business Administration (SBA) has announced a new policy that effectively bars non-US citizens, including green card holders and legal permanent residents, from accessing its main lending program. As of March 1, only U.S. citizens or nationals residing in the United States or its territories will be eligible to borrow money under the agency's 7(a) program.
The SBA claims that this new policy aligns with President Trump's January 2025 executive order aimed at enforcing US immigration laws and ensuring public safety. However, critics argue that it is discriminatory and could stifle entrepreneurship among immigrants who start businesses in the United States.
According to the SBA, the previous rule allowed for up to 5% foreign ownership of small businesses to qualify for a loan. The agency now requires 100% of direct and indirect business owners to be US citizens or nationals with their principal residence in the country.
"This decision will have devastating consequences for immigrant entrepreneurs who are trying to build a better life for themselves and their families," said Carolina Martinez, CEO of CAMEO Network, a network of small business support groups. "The SBA's guidance is not only discriminatory but also counterproductive to economic growth and job creation."
Democratic members of the US Senate Committee on Small Business and Entrepreneurship have also criticized the policy, calling it a "devastating attack on immigrant entrepreneurs." They argue that the Trump administration is stoking hatred and fear among immigrants and small business owners.
The SBA claims that its new policy will create more opportunities for U.S. citizens to access loans and drive economic growth. However, critics say that this policy will disproportionately affect immigrant communities who are often underrepresented in the US economy.
As the debate over this policy continues, advocates for small businesses and immigrants plan to work with lawmakers to fight what they characterize as discriminatory guidelines.
The SBA claims that this new policy aligns with President Trump's January 2025 executive order aimed at enforcing US immigration laws and ensuring public safety. However, critics argue that it is discriminatory and could stifle entrepreneurship among immigrants who start businesses in the United States.
According to the SBA, the previous rule allowed for up to 5% foreign ownership of small businesses to qualify for a loan. The agency now requires 100% of direct and indirect business owners to be US citizens or nationals with their principal residence in the country.
"This decision will have devastating consequences for immigrant entrepreneurs who are trying to build a better life for themselves and their families," said Carolina Martinez, CEO of CAMEO Network, a network of small business support groups. "The SBA's guidance is not only discriminatory but also counterproductive to economic growth and job creation."
Democratic members of the US Senate Committee on Small Business and Entrepreneurship have also criticized the policy, calling it a "devastating attack on immigrant entrepreneurs." They argue that the Trump administration is stoking hatred and fear among immigrants and small business owners.
The SBA claims that its new policy will create more opportunities for U.S. citizens to access loans and drive economic growth. However, critics say that this policy will disproportionately affect immigrant communities who are often underrepresented in the US economy.
As the debate over this policy continues, advocates for small businesses and immigrants plan to work with lawmakers to fight what they characterize as discriminatory guidelines.
This new SBA policy is literally gutting opportunities for non-US citizens to start and grow their own businesses 
. Like, can't you just imagine all the cool ideas and innovations that are gonna get squashed because of this super restrictive rule 
? It's not like they're trying to take advantage of anyone or steal jobs from Americans... but I guess when it comes to lending money, that's exactly what it feels like 
. The stats on the economic impact are already looking pretty bleak - all because of some super broad interpretation of "public safety" 
.
! it's like they're really trying to stifle innovation from non-US citizens who are already here with their own money 
. and what about all those green card holders and legal permanent residents who have been living in this country for years? do they really deserve to be kicked out of the lending program just because of their citizenship status 
? it's like, come on SBA! you're supposed to support small businesses, not make it harder for people from all over the world to get involved 
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. It's like, I get where they're coming from in terms of public safety and all that, but at the same time, it feels like a total bummer for immigrant entrepreneurs who are just trying to chase their dreams 
. I mean, 5% foreign ownership used to be enough to qualify for a loan, so what's changed now? It seems super restrictive 
. I can see how it would stifle entrepreneurship and create more divisions between immigrants and native-born Americans 
. It's like, we're already seeing so much division in our society right now, do we really need another thing to drive us apart? 
Like, what if this sparks a wave of innovation and job creation among our own communities? 
- just imagine all those talented entrepreneurs who came to the US with a dream and worked hard to build their businesses from scratch... now they're being shut out because of their immigration status 
it's not like they're hurting anyone, they're contributing to the economy in their own way 
but I guess some people think that just because they're not born here, they don't deserve a chance to succeed 
it's like they're trying to hold back progress and innovation 
So now non-US citizens, like my friend's cousin who runs a sick food truck 
, are out of luck when it comes to getting loans from the SBA? It's literally insane! 
We need to stand with these entrepreneurs and fight for fairness! 
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. Now, if they can't access loans from the SBA, it's gonna be super tough for them to grow their business and provide for their families 
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. We can't let fear and hatred dictate our policies, especially when it comes to economic opportunities 
. If immigrants are running businesses that hire American workers and pay taxes, what's wrong with that? It's like we're creating a class of second-class citizens 
. This policy is gonna hurt people's lives, and it's just not worth it 
.
This new policy is SO misguided. I mean, I get it that the SBA wants to enforce US immigration laws, but do they have to make it so harsh? 
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. And let's not forget, these people have families and communities to support too 
can you believe the SBA is doing this? it's like, super unfair to non-US citizens who are already trying so hard to make a life for themselves here 
i mean, come on, 5% foreign ownership was already pretty strict, what's the big deal now?