A new rule from President Donald Trump’s administration will prevent green card holders from applying for loans from the U.S. Small Business Administration (SBA) and limit eligibility for these loans to businesses owned by U.S. citizens, according to an SBA notice.
The SBA is the US government agency that provides loans and assistance to millions of small businesses across the country. Lawful permanent residents of the US, known as “green card” holders, are authorized to live and work permanently in the United States.
The Trump administration’s policies toward immigrants have been condemned by human rights groups, who say government actions such as the revocation of visas and green cards, deportation attempts and the deployment of federal agents have created an environment of fear for minorities. Trump has justified his policies, which have faced legal challenges, citing homeland security concerns and fraud prevention goals.
The SBA notice indicates that beginning March 1, businesses applying for agency-backed loans must be wholly owned by U.S. citizens or U.S. nationals whose primary residence is in the United States.
Democratic Rep. Grace Meng said the SBA’s decision amounts to denying “working legal immigrants the capital they need to start or grow a business” and will leave them “out of the American Dream.”
The notice repeals prior guidance, “eliminating the limited exception that allowed up to 5% of a borrower’s property to be held by aliens, U.S. citizens, U.S. nationals, or lawful permanent residents (LPRs) whose principal residence was outside the United States, its territories or possessions.”
“Furthermore, and from the effective date of this notification, legal permanent residents (LPRs) will not be eligible to own any percentage interest in an applicant/borrower,” the notification adds.
The new rule does not prohibit non-citizens in the US from owning businesses or accessing conventional bank loans.
date: 2026-02-12 06:22:00
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