The U.S. Small Business Administration (SBA) announced that, effective March 1, green card holders will no longer be eligible for SBA-backed loans. The move is part of a broader effort to tighten lending restrictions and ensure that funds are directed exclusively to U.S. citizens and nationals.

 

Although the SBA does not provide direct loans—except in disaster-related cases—it works with banks and financial institutions to offer credit to small businesses, often with more favorable rates than traditional loans. Under the new policy, many immigrant entrepreneurs who rely on these loan guarantees could be affected.

 

Small business advocacy groups, such as Small Business Majority, have criticized the decision, warning that it could slow the creation of businesses and jobs across the country.

 

According to the organization, immigrants are twice as likely to start a business as U.S.-born citizens, meaning the SBA’s new restrictions could have a long-term negative impact on the nation’s entrepreneurial economy.