REGULATORY · COMPETITIVE · USA
SBA-backed loan eligibility changed to exclude green card holders
Change
In February 2026, the US Small Business Administration made legal residents (green card holders) ineligible for SBA-backed loans.
Why Now
In February 2026, the SBA announced that legal residents (green card holders) are ineligible for SBA-backed loans. In June, the SBA changed loan program rules to require 100% of a business be owned by citizens or green card holders to receive an SBA-backed loan, replacing a prior 51% ownership threshold. Last year, the SBA announced that its regional offices would move out of sanctuary cities that opposed Trump’s policies.
Impact
- • Green card holders are ineligible for SBA-backed loans.
- • SBA-backed loan eligibility requires 100% citizen-or–green-card ownership (replacing a 51% threshold).
Who Recalculates
- • Green card holder small business owners
- • Small businesses applying for SBA-backed loans
- • Lenders participating in SBA-backed loan programs
Source
Topics
World & Politics Policy & Regulation Law & Public Safety Regulatory Actions Finance & Banking Financial Services