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SBA says legal permanent residents will be ineligible for its loan program, effective March 1
The Small Business Administration tightens loan rules by excluding lawful permanent residents from eligibility, reversing a December policy that allowed up to 5% non-citizen ownership.
- On March 1, the Small Business Administration said lawful permanent residents won’t be eligible to apply for SBA loans, tightening loan restrictions as part of agency restructuring.
- Last year, the SBA tightened ownership requirement rules by raising thresholds from 51% to 100%, and in December issued a policy note allowing 5% non-citizen ownership.
- The SBA generally works with private lenders to distribute loans, and SBA-backed loans typically offer better rates than traditional loans for small businesses seeking SBA loans.
- Small Business Majority warned that the move will limit small-business growth and jobs, while CEO John Arensmeyer said it ignores that immigrant entrepreneurs start businesses twice as often as native-born citizens.
- The current policy rescinds December's guidance and explicitly makes lawful permanent residents ineligible, while the SBA did not respond to requests for comment about the change.
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Permanent residents in the US (those with 'green card') will no longer qualify for loans granted by the US.
Associated Press News+35 Reposted by 35 other sources
SBA says legal permanent residents will be ineligible for its loan program, effective March 1
The Small Business Administration said in a policy note that green card holders won’t be allowed to apply for SBA loans, effective March 1.
·United States
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Coverage Details
Total News Sources46
Leaning Left4Leaning Right4Center33Last UpdatedBias Distribution80% Center
Bias Distribution
- 80% of the sources are Center
80% Center
C 80%
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