California Small Businesses Lose Access to SBA Loans for Non-Citizens

The change could have a huge impact on the state, which has the most small businesses and largest immigrant population in the nation.

Mar. 30, 2026 at 2:37pm

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A minimalist studio still life photograph featuring a stack of SBA loan application forms, a pen, and a green card, arranged elegantly on a clean, white background to represent the abstract challenges faced by immigrant small business owners in California.The SBA's decision to limit access to its loans to U.S. citizens and nationals only could create significant challenges for California's immigrant small business owners.Fresno Today

The Small Business Administration (SBA) has limited access to its loans to U.S. citizens and nationals only, eliminating a longtime source of financing for immigrants that advocates say will discourage job creation and harm the economy. This change could significantly impact California, which has the most small businesses and the largest immigrant population in the country.

Why it matters

SBA loans have been an important source of financing for immigrant entrepreneurs in California, who make up 40% of the state's business community and generated $28.4 billion in income in 2023. The new policy change could make it much harder for these business owners to access the capital they need to start or expand their companies, potentially discouraging job creation and hurting the state's economy.

The details

The SBA limited access to its loans to U.S. citizens and nationals only starting in March 2026, and expanded that policy to SBA-backed loans beginning in April. On top of that, any business that's even partly owned by a permanent legal resident with a green card is no longer eligible for the loans. This change could affect about 220,000 small business owners who hold green cards in California.

  • The SBA limited access to its loans to U.S. citizens and nationals only starting in March 2026.
  • The SBA expanded the policy to SBA-backed loans beginning in April 2026.

The players

Small Business Majority

A national business advocacy group that wrote to the SBA in mid-March 2026, urging the federal agency to reconsider the changes.

Maggie Clemmons

A spokesperson for the SBA who said the agency's rule change will help ensure more American citizens have access to funding previously granted to noncitizens.

Carolina Martinez

The chief executive of CAMEO Network, a national association of organizations that support small businesses, who said the SBA decision is really bad for the American economy.

Cristina Foanene

A Romanian immigrant who arrived in the United States 20 years ago and obtained an SBA loan in 2018 that allowed her and her husband to buy a building and expand their glass company, MCS Glass, in Fresno.

Dung Nguyen

The program and organizing director for California Healthy Nail Salon Collaborative, an organization that advocates for Vietnamese immigrants, many of whom work in the nail-salon industry.

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What they’re saying

“The loan gave us an opportunity to create more jobs, to have an even greater impact in our community.”

— Cristina Foanene, Co-owner, MCS Glass

“It literally breaks my heart. There are so many good people with good intentions. I feel it's unfair.”

— Cristina Foanene, Co-owner, MCS Glass

“During the pandemic, these loans were crucial to people's survival.”

— Dung Nguyen, Program and Organizing Director, California Healthy Nail Salon Collaborative

What’s next

Many small business owners may increasingly rely on community development financial institutions and other lenders whose mission is to help people with limited options, credit histories and savings. They could also turn to the state for help, such as the small business loan guarantee program through its IBank or programs through the treasurer's office that reduce risks to lenders.

The takeaway

The SBA's policy change to limit access to its loans to U.S. citizens and nationals only could have a significant impact on California's small business community, which is heavily composed of immigrant entrepreneurs. This decision could discourage job creation, harm the state's economy, and push more business owners into informal or predatory lending arrangements.