SBA Restricts Loans to Businesses Fully Owned by U.S. Citizens, Ending Eligibility for Permanent Residents

U.S. citizens in March 2026. The agency applied the restriction for the first time in its history. Sayuri Tsuchitani received an SBA loan during the pandemic to open a Japanese head spa business in Los Angeles.

Tsuchitani, a green-card holder who moved from Japan 28 years ago, used the funds to open three locations and hire ten workers. Cristina Foanene's glass company in Fresno, California received three SBA loans over a decade.

U.S. From Romania 20 years ago as investors. The loans helped expand showrooms and manufacturing facilities, and the company has hired approximately 30 people, with one employee retiring after 19 years. Kelly Loeffler stated in March 2026 that SBA small-business loans are for American citizens and the agency is unapologetic about it.

An audit last year identified and stopped one six-figure SBA loan approved for a business 49% owned by an immigrant without legal status. Of all SBA loans issued last year, 4% went to businesses involving permanent residents. Maggie Clemmons stated that the SBA rule change will help ensure more American citizens have access to funding previously granted to noncitizens.

Eda Henries stated that no one expected the policy change to include legal permanent residents. Private lenders issuing SBA loans are now taking longer to verify every owner's citizenship status. Sen.

Ed Markey of Massachusetts and Rep. Nydia Velazquez of New York introduced legislation to restore SBA loan eligibility for legal permanent residents. Eight business owners who are legal permanent residents and had applied for or received SBA loans this year declined to speak to NPR on the record.