The Small Business Administration has eliminated access to its loan programs for legal permanent residents, marking the first time in the agency's history that green card holders have been barred from this funding source. The change was announced in February as part of an "America First" agenda under SBA administrator Kelly Loeffler.
The decision has stirred concern among immigrant entrepreneurs and small-business advocates. Aneesa Waheed, a restaurateur who was named the SBA's New York state small business person of the year in 2024, expressed her shock at the policy shift. "You think of the SBA as a source of support and strength for small businesses," said Waheed, a naturalized citizen who operates five Moroccan restaurants across New York and New Jersey.
The SBA, established in 1953, does not directly lend to business owners but rather underwrites portions of loans issued by banks, credit unions, and other institutions. In fiscal year 2025, the agency facilitated over $44 billion in loans to small businesses classified as having 500 or fewer employees, with loan amounts typically ranging from $50,000 to $5 million.
Last June, Loeffler changed the ownership requirements for SBA loans. Previously, businesses needed to be at least 51 percent owned by citizens or legal residents to qualify. The new rule now requires 100 percent ownership by citizens or green card holders. This means married couples seeking to launch a business together cannot obtain an SBA loan unless both partners are U.S. citizens.
Green card holders are lawful permanent residents who must typically wait at least five years, or three years if married to a citizen, before becoming eligible for naturalization. Some immigrants maintain permanent resident status because their home countries prohibit dual citizenship, potentially facing permanent exclusion from SBA loans under the new policy.
Keegan McBride, co-founder of SBA Source, a company specializing in securing SBA loans for franchisees, said the change creates significant barriers. "SBA loans are really only meant to be issued in situations where folks wouldn't be able to get access to credit on similar terms without the government guarantee," he explained. Alternative funding sources typically require higher interest rates and stricter qualifications, such as home equity or investment portfolios as collateral.
Aissatou Barry-Fall, CEO of the Lower East Side People's Federal Credit Union, a nonprofit SBA lender in New York City, called the policy discriminatory. "That's all it is," she said.
An SBA spokesperson stated the agency is committed to driving economic growth for American citizens and ensuring taxpayer dollars support "U.S. job creators and innovators."
The policy carries broader implications for immigrant-owned businesses, which represent a significant portion of the small-business sector and have historically served as employers in their communities.