US Small Business Administration bars green card holders from guaranteed small-business loans
Change
US Small Business Administration (SBA) announced in February 2026 that lawful permanent residents (green card holders) are now ineligible for SBA-guaranteed small-business loans, removing eligibility for the first time in the agency's history.
Why it matters
Businesses led or partly owned by lawful permanent residents can no longer access government-backed loan guarantees, removing a standard route to affordable credit. Lenders and applicants must rely on private loans or additional collateral that many small enterprises do not have.
Implications
- • SBA-authorized lenders' underwriting and compliance teams must stop issuing or submitting applications for SBA-guaranteed loans from applicants who are lawful permanent residents because such loans will be ineligible for the agency guarantee.
- • Franchise brokers and SBA loan brokers must verify that every listed owner meets the agency's revised citizenship eligibility before filing loan packages to avoid application rejection.
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