Overview
- Administrator Kelly Loeffler announced the agency-wide ban on foreign nationals and non-citizens accessing SBA-backed small business financing.
- The move extends February restrictions on the 7(a) and 504 programs to include the Surety Bond and Microloan programs, covering all SBA-guaranteed loans.
- Under updated guidance, every direct and indirect owner of an applying business must be a U.S. citizen or U.S. national with a principal residence in the United States, excluding lawful permanent residents.
- The policy takes effect 30 days after the March 9 announcement.
- SBA-cited data show about 3,300 FY2025 loans involved firms partially owned by lawful permanent residents—roughly 4% of 85,000 approvals—as the agency points to limited lending capacity and pandemic-era fraud concerns.