The Small Business Administration (SBA) announced Monday it is banning foreign nationals and non-citizens from acquiring any SBA small business loans.
The policy change — which pertains to the SBA’s surety bond and microloan programs — comes after the agency enacted a separate policy on March 1 which made any U.S. small business owned partly or wholly by a foreign national ineligible for its 504 and 7(a) loan programs, according to a news release. Small business owners seeking to obtain any SBA loans are now required to be American citizens or U.S. nationals whose principal place of residence is in the United States.
“The Trump SBA is committed to driving economic growth and job creation for American citizens,” SBA Administrator Kelly Loeffler said in a statement. “Last month, we made it clear that SBA would not allow foreign nationals to access our core small business loan programs – and today, we are expanding that policy to include all SBA-guaranteed loans.”
“With our lending authority capped annually by Congress and amid record demand for access to capital, our responsibility is clear: the limited resource of SBA financing must prioritize American citizens who are building businesses and creating jobs here at home,” Loeffler continued.
The SBA referred the Daily Caller News Foundation to its press release when reached for comment.
The SBA approved 3,358 loans for U.S. small businesses partially owned by lawful permanent residents (LPRs) during Fiscal Year 2025, most of which occurred during former President Joe Biden’s administration, with such loans accounting for about 4% of the agency’s total 85,000 loan approvals, per the press release. The newly announced loan program policy is set to go into effect 30 days after publication.
The SBA’s microloan program provides loans of up to $50,000 in an effort to help American small businesses and certain nonprofit childcare centers grow. Moreover, the agency also guarantees surety bonds for some businesses, which allows these companies to provide surety bonds to small businesses that potentially cannot meet the criteria for other sureties.
Loeffler stated in a July 2025 X post that her agency “will ensure that every taxpayer-funded program at the SBA goes to benefit ELIGIBLE small business owners – not illegal aliens or criminals.”
Additionally, Loeffler announced in February that the SBA had suspended 111,620 “California borrowers” over allegations of fraud involving pandemic-era loan programs.
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