By Megan Cerullo
Updated Feb. 3, 2026 / CBS News
The Small Business Administration will exclude green card holders and other non-U.S. citizens from eligibility for its primary lending program, the 7(a) loan guarantee, beginning March 1.
Under the new policy notice, only U.S. citizens or U.S. nationals who have their principal residence in the United States, its territories or possessions will qualify. The SBA said it expects “100% of all direct and/or indirect owners of a small business applicant be U.S. Citizens or U.S. Nationals who have their Principal Residence in the United States, its territories or possessions.” That reverses a December SBA notice that had allowed up to 5% ownership by foreign nationals or lawful permanent residents while still qualifying for a 7(a) loan.
The agency said the change implements President Trump’s January 2025 executive order titled “Protecting the American People Against Invasion,” which the White House described as aimed at enforcing immigration laws and ensuring public safety.
Maggie Clemmons, an SBA spokesperson, said the guidance is intended to prioritize job opportunities for U.S. citizens. “The Trump SBA is committed to driving economic growth and job creation for American citizens — which is why, effective March 1, the agency will no longer guarantee loans for small businesses owned by foreign nationals,” she said. Clemmons added the agency expects to make more capital available if Congress raises SBA loan limits for businesses “that are hiring, building and producing in America.”
The 7(a) program, the SBA’s main lending vehicle, provides guarantees to lenders and lets business owners borrow up to $5 million for working capital, refinancing debt, buying equipment, and purchasing or upgrading real estate.
Immigrant and small-business advocates reacted strongly, warning the policy could stifle entrepreneurship and harm economic growth. Carolina Martinez, CEO of the CAMEO Network, pointed to research showing immigrants start new businesses at roughly twice the rate of U.S.-born residents and said excluding lawful permanent residents jeopardizes business creation and the broader economy. CAMEO said it will work with lawmakers to challenge the guidance and called the move discriminatory.
Democratic members of the Senate Committee on Small Business and Entrepreneurship also condemned the change. Senators Edward J. Markey and Nydia Velázquez said it is “a devastating attack on immigrant entrepreneurs,” arguing the decision sends a message that immigrants are not welcome to pursue the American Dream.
Edited by Alain Sherter