Green Card Holders Excluded From US Government-Backed Business Loans From March 1

The US Small Business Administration (SBA) has announced that, from 1 March, businesses with any legal permanent resident (LPR) ownership will no longer be eligible for SBA-backed loans.

Under the revised rules, all direct and indirect owners of a loan applicant must be US citizens or nationals living in the country or its territories. Green card holders, who have historically qualified for SBA programmes, will now be excluded.

The restriction applies to new applicants, existing businesses linked to loans, and indirect ownership structures. Any loan involving an LPR must be approved before the March deadline to remain valid under the previous framework.

SBA lending programmes are a central source of financing for small businesses across the United States. The 7(a) loans provide working capital and support for inventory and equipment, while 504 loans are widely used for property purchases and heavy machinery.

In California’s Central Valley alone, lenders guaranteed more than $115 million in SBA loans during the period cited by lawmakers, highlighting the scale of reliance on these funds. Critics warn the change will disproportionately affect immigrant-founded businesses, particularly in states with high levels of migrant entrepreneurship.

Democratic lawmakers have strongly opposed the decision. Senator Edward Markey of Massachusetts and Representative Nydia Velázquez of New York, senior members of the Senate and House Small Business Committees, described the move as “an attack on legal immigrants who run small businesses.” They noted that this marks the second reversal of SBA citizenship rules in less than two months.

In December, the agency had allowed up to 5% foreign national ownership while excluding Chinese citizens; that concession has now been withdrawn entirely. Lawmakers accused the Trump administration of using the SBA to advance its “America First” agenda, warning that the policy undermines the agency’s mission to support small business growth.