Feds announce foreigners now ineligible for popular SBA loan program
Officials in America’s federal government have been “too loosey-goosey for too long,” and there’s a “tremendous amount of money missing at the SBA back from the Biden administration.”
So one part of the solution is going to be to bar foreigners from owning any part of a business that gets a Small Business Administration loan.
The comment comes from Rep. Roger Williams, R-Texas, the head of the House Small Business Committee.
They came as the SBA announced it has a new policy, effect in just weeks, that will require 100% of all owners of a small business applying for the agency’s primary 7(a) loan program to be a U.S. citizens or U.S. nationals with principal residences in the U.S.
Williams said, “Some options aren’t the best. Maybe we need to have one [option] and grow from there.”
It will end a policy from December that let a borrower own up to 5% of a business even if they are a foreign national, a green car holder or a U.S. national living outside the U.S.
BREAKING: The SBA has officially rescinded the procedural notice issued in December 2025 that allowed up to 5% foreign ownership in SBA loan applications. This will be effective March 1, 2026
Someone at the SBA is clearly working during the government shutdown. Hmmmmmm.… pic.twitter.com/b1hWVQdLZs
— Jerry Freedman, CEO – Freedom Business Financing (@SBAdealCloser) February 2, 2026
Huge W on the SBA loan front. https://t.co/YHv329MGUQ
— Paul (@WomanDefiner) February 3, 2026
A report at Politico said there’s been opposition to the idea.
That came from Sen. Ed Markey, D-Mass., and Rep. Nydia Velázquez, D-N.Y., ranking members of the Senate and House Small Business Committees.
In a statement, they complained about depriving foreigners of the benefits provided by U.S. taxpayers.
Their screed, of course was focused on being “anti-Trump.”
“The Trump administration is stoking the flames of hatred, spreading fear and confusion among immigrants and small business owners. Rather than support hard-working legal immigrants to start or expand a business, the Trump SBA is choosing hatred by barring green card holders from receiving an SBA loan,” they said.
But it’s more basic, really, said SBA spokesperson Maggie Clemmons.
The Trump administration is seeking to “driving economic growth and job creation for American citizens – which is why, effective March 1, the agency will no longer guarantee loans for small businesses owned by foreign nationals.”
The Politico report commented, “The policy change is consistent with President Donald Trump’s January 2025 executive order on ‘protecting the American people against invasion’ which requires federal agencies to ’employ all lawful means to ensure the faithful execution of the immigration laws of the United States.'”
Nearly $34 billion went out of the SBA for those loans during 2025.