WASHINGTON (Diya TV) — The U.S. Small Business Administration announced a new policy Wednesday that will bar foreign nationals and all noncitizens from receiving SBA-backed small business loans. The move aims to prioritize American job creators amid growing demand for capital.
The policy update affects the SBA’s Surety Bond and Microloan Programs. It follows a recent change that restricted foreign nationals from the agency’s main 504 and 7(a) loan programs. Under the new rules, any small business applying for an SBA loan must be owned by U.S. citizens or U.S. nationals living in the United States.
SBA Administrator Kelly Loeffler emphasized the agency’s focus on supporting American entrepreneurs. “The Trump SBA is committed to driving economic growth and job creation for American citizens,” she said. “Last month, we made it clear that SBA would not allow foreign nationals to access our core small business loan programs. Today, we are expanding that policy to include all SBA-guaranteed loans.”
Loeffler added that with SBA’s lending authority capped by Congress and record demand for loans, the agency must prioritize American citizens. “The limited resource of SBA financing must support those who are building businesses and creating jobs here at home,” she said.
In fiscal year 2025, the SBA approved 3,358 loans for businesses partially owned by lawful permanent residents. These loans made up about 4% of the agency’s 85,000 total approvals. Many of these approvals occurred during the Biden administration. The new policy will take effect 30 days after its official publication. This means foreign nationals and noncitizens will no longer qualify for SBA-backed loans under any of the agency’s programs.
The latest policy builds on a series of reforms by Administrator Loeffler. Last year, the SBA introduced citizenship verification across all loan programs. The move aimed to prevent illegal aliens from accessing SBA funding. The agency also announced plans to relocate field offices from sanctuary cities that do not cooperate with U.S. Immigration and Customs Enforcement. According to the SBA, the relocation will protect both staff and small business owners while ensuring compliance with federal law.
SBA loans are critical for many small businesses. They provide the funds needed to start, grow, and expand operations. By restricting access to U.S. citizens, the SBA says it can focus on supporting American entrepreneurs during a period of high demand.
The SBA offers multiple programs, including 7(a) loans, 504 loans, Microloans, and Surety Bonds. Each program helps businesses access financing for different needs, from purchasing equipment to meeting payroll. By limiting eligibility, the agency aims to make these resources more available to U.S. businesses.
The Small Business Administration plays a central role in American entrepreneurship. It delivers resources, guidance, and financial support to job creators. Its nationwide network of field offices partners with public and private organizations to provide services.
