The U.S. Small Business Administration (SBA) announced on Monday, March 9th, that foreign nationals and non-citizens will no longer be eligible for any SBA-guaranteed loan programs. The policy applies to all lending programs, including the Surety Bond and Microloan Programs, and follows a previous restriction earlier this month that barred businesses with any foreign ownership from the agency’s 504 and 7(a) loan programs.
Under the updated rules, applicants must be U.S. citizens with their primary residence in the United States. SBA Administrator Kelly Loeffler emphasized that the agency is extending its restrictions to all SBA-guaranteed loans to address limited funding. She remarked that “the limited resource of SBA financing must prioritize American citizens who are building businesses and creating jobs here at home,” highlighting the agency’s focus on supporting U.S.-based entrepreneurs amid record demand for capital.
The policy change represents a shift from previous years, when lawful permanent residents were eligible for SBA-backed loans. In Fiscal Year 2025, the SBA approved 3,358 loans to businesses partially owned by permanent residents, representing roughly 4 percent of the agency’s 85,000 total approvals.
The announcement also builds on broader reforms by the agency over the past year, including citizenship verification measures aimed at preventing undocumented immigrants from accessing funding. Additionally, the SBA has begun relocating field offices from sanctuary cities that do not cooperate with U.S. Immigration and Customs Enforcement (ICE). The new lending restrictions are scheduled to take effect 30 days after the policy’s publication.
