SBA Prohibits Loans to Noncitizens

For years, Small Business Administration (SBA)-backed small business loans were available to borrowers that were at least 51% owned by US citizens, US nationals, and/or US legal permanent residents (LPRs also known as “green card” holders).  The Trump Administration has now extended the scope of its efforts to tighten immigration-related policies and rules to qualifications for SBA loans.

Effective March 1, 2026, SBA loans will require, among other things, 100% ownership by US citizens or US nationals only, who have their principal residence in the US, its territories, or possessions. LPRs will no longer be eligible to own any share of a business applying for SBA-backed loans—not even 1%.

Dickinson Wright:
Trump Administration Prohibits SBA Loans to Noncitizens