Small Business Administration and Federal Lending

The U.S. Small Business Administration has announced a new policy that will bar foreign nationals and non‑U.S. citizens from accessing any SBA‑guaranteed loan programs, extending a February 2026 restriction on its flagship 7(a) and 504 loans to now cover the Surety Bond and Microloan programs as well. Administrator Kelly Loeffler said Friday that, with annual lending authority capped by Congress and record demand for capital, SBA financing "must prioritize American citizens" and will no longer be available to businesses that are partially or wholly owned by foreign nationals. The move formalizes a broader Trump‑era shift at SBA that has already added citizenship verification across programs and ordered offices out of so‑called sanctuary cities that limit cooperation with federal immigration enforcement. According to SBA data cited in the piece, about 3,300 current loans—roughly 4% of the agency’s 85,000‑loan portfolio—are to businesses partially owned by lawful permanent residents, underscoring how the change could shut future green‑card holders out of a key source of startup and expansion financing. The policy takes effect 30 days after the announcement and is already drawing online criticism from immigrant‑entrepreneur advocates who argue it weaponizes federal credit policy to advance an exclusionary immigration agenda while supporters frame it as long‑overdue protection of scarce taxpayer‑backed loan capacity for citizens.