SBA Bans Foreign Nationals from Accessing SBA-backed Loans
Summary
SBA news release 26-35, published on March 9, 2026, stating that the SBA issued a new policy notice to ban foreign nationals and non-citizens from accessing SBA-guaranteed small business loans. The notice applies to the Surety Bond and Microloan Programs and builds on an earlier change that made small businesses owned in whole or in part by a foreign national ineligible for the 504 and 7(a) loan programs. It says applicants must be U.S. citizens or U.S. nationals with their principal residence in the United States, and that the policy takes effect 30 days after publication. The release says SBA approved 3,358 loans in Fiscal Year 2025 for businesses owned in part by a lawful permanent resident (LPR), 4% of 85,000 approvals.
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“SBA Bans Foreign Nationals from Accessing SBA-backed Loans.”
Original at legacy.sba.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/sba-news-release-26-35-foreign-nationals-loan-ban-2026-03-09-0d6245ee6b/
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News release 26-35 SBA Bans Foreign Nationals from Accessing SBA-backed Loans Agency reserves federally guaranteed lending for American citizens Published on March 9, 2026 WASHINGTON — Today, in the effort to prioritize American job creators, the U.S. Small Business Administration (SBA) issued a new policy notice to ban foreign nationals and non-citizens from accessing SBA-guaranteed small business loans. The latest notice, which applies to the agency’s Surety Bond and Microloan Programs, builds on the policy change implemented earlier this month – which made any small business owned in whole or in part by a foreign national ineligible for the agency’s flagship 504 and 7(a) loan programs. Small business owners applying for any SBA loan program must be U.S. citizens or U.S. nationals with their principal residence in the United States. “The Trump SBA is committed to driving economic growth and job creation for American citizens,” said SBA Administrator Kelly Loeffler. “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. 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.” In Fiscal Year 2025, SBA approved 3,358 loans for small businesses owned in part by a lawful permanent resident (LPR), largely during the Biden Administration - representing 4% of the agency’s total 85,000 loans approvals. With a finite lending authority and record demand for capital thanks to President Trump’s economic agenda, SBA is prioritizing the agency’s guaranteed loan programs for American citizens. The new policy will take effect 30 days after publication. The latest policy builds on numerous reforms by Administrator Loeffler to put American small business owners first. Last year, the agency implemented citizenship verification across its loan programs to cut off access to loans for illegal aliens. The agency also announced efforts to relocate SBA field offices out of sanctuary cities that do not comply with U.S. Immigration and Customs Enforcement (ICE), jeopardizing both the safety of SBA employees and small business owners. # # # About the U.S. Small Business Administration The U.S. Small Business Administration helps power the American dream of entrepreneurship. As the leading voice for small businesses within the federal government, the SBA empowers job creators with the resources and support they need to start, grow, and expand their businesses or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov . Related programs: Microlending, Surety Bonds Media contacts U.S. Small Business Administration Email Press_Office@sba.gov
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