The Small Business Administration (SBA) announced that green card holders will no longer be eligible to apply for its loan program beginning March 1. This decision aligns with the SBA’s efforts to tighten loan restrictions and restructure the agency under the Trump administration.
Last year, the SBA required that businesses must be 100% owned by U.S. citizens, U.S. nationals or lawful permanent residents, up from a standard of 51%. Now, the new rules require businesses to be 100% owned by only U.S. citizens to apply for an SBA loan, cutting out lawful permanent residents entirely.
The SBA does not issue direct loans, except in disaster-related situations. Instead, it collaborates with lenders to provide loans to small businesses.
