The US Small Business Administration (SBA) has introduced a new rule restricting SBA loan eligibility to American-owned businesses. The move prohibits non-citizens, including those with green cards, from applying for US Small Business Administration loans.
All SBA loan programs, including major lending programs and smaller assistance programs, will be affected by the move, SBA Administrator Kelly Loeffler announced on Monday.
The new rule requires that all direct and indirect owners of a company applying for an SBA-backed loan must be US citizens or US nationals whose principal residence is in the United States.
This change eliminates previous exemptions for enterprises with modest foreign ownership and represents a significant tightening of previous eligibility requirements.
The updated policy has become effective on March 1, 2026, and is aimed at ensuring that 'American job creators must come first.'
