Green Card Holders Lose Eligibility for Small Business Loans (1)

The Small Business Administration will remove green card holders’ eligibility to participate in government loan programs beginning March 1.

The agency will require that 100% of small business loan applicants be owned by US citizens or US nationals whose principal residence is in the US. A policy notice released Feb. 2 rescinds an exception allowing foreign nationals or US citizens living primarily outside the US to own up to a 5% stake in a business seeking an SBA loan.

The eligibility change is meant to comply with a January 2025 White House executive order on “Protecting the American People Against Invasion.” It’s part of a broader series of moves by the Trump administration to restrict non-citizens’ access to benefits, including public housing and in-state tuition for public universities.

SBA Administrator Kelly Loeffler announced last year that the agency would add citizenship verification requirements to loan applications and would relocate regional offices from so-called “sanctuary cities” that the Trump administration says don’t comply with US Immigration and Customs Enforcement.

“The Trump SBA is committed to driving economic growth and job creation for American citizens – which is why, effective March 1, the agency will no longer guarantee loans for small businesses owned by foreign nationals,” Maggie Clemmons, a spokesperson for the agency, said. “Across every program, the SBA is ensuring that every taxpayer dollar entrusted to this agency goes to support U.S. job creators and innovators.”