SBA Loans: Green Card Holders No Longer Eligible – New Rules 2024

The Small Business Administration (SBA) has implemented new restrictions on its loan programme, barring green card holders from qualifying for assistance. The policy, announced in a memorandum, limits access to the agency’s primary loan programme to businesses with 100% U.S. Ownership where the owners reside in the country.

SBA Loan Access Restricted

Previously, small businesses could qualify for SBA loans if more than 51% of the business was owned by a U.S. Citizen residing within the United States. These changes, enacted by the government of President Donald Trump, represent a tightening of requirements.

The SBA had already begun to restrict loan eligibility in December, allowing only businesses with up to 5% ownership held by non-U.S. Citizens, green card holders, or U.S. Citizens residing outside of the United States to qualify. The recent memorandum eliminates access to the agency’s popular general use loan, which can provide up to $5 million in funding.

Did You Know? Prior to March 1, 2025, small businesses could qualify for SBA loans with 51% ownership by a U.S. Citizen living within the United States.

Expert Insight: These policy changes significantly alter the landscape for immigrant entrepreneurs seeking to access capital through the SBA, potentially limiting opportunities for business growth and expansion within the U.S. Economy.

Recent policy changes from the SBA have already led to a 46% reduction in small business lending, according to reports from December 19, 2025.

Frequently Asked Questions

When did these changes to the SBA loan programme take effect?

The most recent change, barring green card holders from the main lending programme, took effect on March 1, 2025. Prior restrictions were implemented in December.

What is the maximum loan amount available through the SBA’s general use loan programme?

The SBA’s general use loan programme offers a maximum loan amount of $5 million.

Were there previous requirements for U.S. Ownership in SBA loans?

Yes, prior to the changes enacted by the government of President Donald Trump, small businesses could qualify for a loan if 51% was owned by a U.S. Citizen residing in the United States.

How might these changes impact the small business landscape in the coming months and years?