SBA bars green card holders from agency-backed small business loans
Mar 6th 2026
The Small Business Administration said in February that green card holders can no longer receive SBA-backed loans, a first in agency history under administrator Kelly Loeffler that tightens ownership rules and threatens credit access for immigrant-run small businesses.
- The SBA announced in February that lawful permanent residents are now ineligible for SBA-backed loans.
- Earlier the agency tightened rules to require 100% ownership by U.S. citizens or legal residents, up from a 51% threshold.
- The change comes under administrator Kelly Loeffler as part of an America First agenda tied to the Trump administration.
- The SBA guaranteed more than $44 billion in loans in fiscal year 2025 that often support restaurants, franchises and other main street businesses.
- Immigrant entrepreneurs, many franchisees, and business partners with noncitizens now face harder financing or must use personal assets to secure credit.