New SBA Loan Rule Bars Green Card Holders

The Trump administration's new policy limits SBA loan eligibility to citizen-owned businesses only.

Published on Feb. 12, 2026

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The U.S. Small Business Administration (SBA) has issued a new rule that will bar green card holders from applying for SBA loans and limit SBA loan eligibility to businesses that are completely owned by U.S. citizens or U.S. nationals whose principal residence is in the United States. The policy change rescinds a previous exception that allowed up to 5% ownership by foreign nationals or U.S. citizens/residents whose principal residence was outside the U.S.

Why it matters

The new SBA loan policy is part of the Trump administration's broader crackdown on immigration, which has faced criticism from human rights groups who say it creates a fearful environment for minorities. The change will make it harder for legal permanent residents, or green card holders, to access the capital they need to start or grow a business.

The details

The SBA notice states that starting March 1, businesses seeking SBA-backed loans must be completely owned by U.S. citizens or U.S. nationals whose principal residence is in the United States. This rescinds a previous exception that allowed up to 5% ownership by foreign nationals or U.S. citizens/residents whose principal residence was outside the U.S. The new rule does not prohibit non-citizens in the U.S. from owning businesses or from accessing conventional bank loans, but it does lock them out of SBA loan programs.

  • The new SBA loan policy will take effect on March 1, 2026.

The players

Donald Trump

The President of the United States who implemented the new SBA loan policy as part of his administration's broader crackdown on immigration.

Grace Meng

A Democratic U.S. Representative who criticized the SBA's decision, saying it amounted to denying "hard-working legal immigrants the capital they need to start or grow a business" and will lock them "out of the American Dream."

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What they’re saying

“The SBA's decision amounted to denying 'hard-working legal immigrants the capital they need to start or grow a business' and will lock them 'out of the American Dream.'”

— Grace Meng, U.S. Representative (taylorvilledailynews.com)

What’s next

The new SBA loan policy will take effect on March 1, 2026, and the administration's broader immigration crackdown is likely to face continued legal challenges.

The takeaway

The Trump administration's new SBA loan policy is the latest in a series of actions targeting immigrants, further restricting their access to economic opportunities and the 'American Dream.' This move is likely to exacerbate concerns about the administration's anti-immigrant agenda and its impact on minority communities.