The Small Business Administration announced a policy that will prevent foreign nationals and noncitizens from accessing SBA-backed loan programs as the agency says it will prioritize financing for American citizens.
By yourNEWS Media Newsroom
The U.S. Small Business Administration announced a policy change that will prohibit foreign nationals and noncitizens from participating in all SBA-backed loan programs, expanding earlier restrictions introduced this year as part of the agency’s effort to focus federal lending resources on American citizens.
According to a report by Fox News, the updated requirement will apply to the SBA’s Surety Bond and Microloan programs, adding to reforms implemented in February that limited eligibility in the agency’s 504 and 7(a) lending programs.
Those earlier changes barred businesses partially or fully owned by foreign nationals from receiving SBA financing under the two widely used loan programs, which support small businesses seeking capital for operational expenses, equipment purchases and business acquisitions.
The new policy broadens those restrictions to cover all SBA-guaranteed loans.
“The Trump SBA is committed to driving economic growth and job creation for American citizens,” SBA Administrator Kelly Loeffler said in a statement announcing the change.
Loeffler said the agency had already signaled its direction on the issue in previous actions earlier this year.
“Last month, we made it clear that SBA would not allow foreign nationals to access our core small business loan programs – and today, we are expanding that policy to include all SBA-guaranteed loans,” she said.
The Surety Bond program allows contractors—particularly those new to federal contracting—to compete for government projects that require bonding guarantees. The SBA-backed bonds help smaller contractors meet requirements needed to bid on federal and public works projects.
The Microloan program operates through approved nonprofit intermediaries that distribute loans of up to $50,000 to small businesses and startups. The funds are typically used for working capital, equipment purchases or other early-stage operational needs.
SBA officials said the policy change is intended to direct limited loan funding toward businesses owned by American citizens.
“With our lending authority capped annually by Congress and amid record demand for access to capital, our responsibility is clear: the limited resource of SBA financing must prioritize American citizens who are building businesses and creating jobs here at home,” Loeffler said.
The agency’s announcement follows a series of broader changes implemented during the Trump administration that officials say are designed to ensure SBA programs serve domestic entrepreneurs.
In 2025, the agency introduced citizenship verification requirements for borrowers participating in its lending programs. The SBA also announced plans to relocate agency offices from so-called sanctuary cities, jurisdictions where local officials have directed law enforcement not to cooperate with federal immigration enforcement actions.
According to SBA data cited in the report, the agency currently has approximately 3,300 loans issued to businesses that are partially owned by lawful permanent residents. Those loans were largely approved during the Biden administration and account for roughly 4 percent of the agency’s total loan portfolio, which currently includes about 85,000 loans.
SBA officials said the expanded eligibility rule will take effect 30 days after the announcement.
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