Trump agency cuts off foreign nationals, SBA loans will only be given to American citizens

A top Trump administration agency is carrying out the America First agenda by moving to cut off loans to small businesses owned by foreign nationals and noncitizens.

The new policy announced by the U.S. Small Business Administration (SBA) affects the agency’s main lending program and went into effect on March 1.

“SBA is requiring that 100% of all direct and/or indirect owners of a small business applicant be U.S. Citizens or U.S. Nationals who have their Principal Residence in the United States, its territories or possessions,” the SBA said in a policy notice last month.

Beginning on March 1, SBA loans will only be given to American citizens.

I VOTED FOR THIS!!

Why in the world were non-citizens ever allowed to receive these loans?

Who is making these ridiculous decisions???

— Kentucky Girl (@Notwokenow) February 13, 2026

“The Trump SBA is committed to driving economic growth and job creation for American citizens,” SBA Administrator Kelly Loeffler said in a statement. “Last month, we made it clear that SBA would not allow foreign nationals to access our core small business loan programs – and today, we are expanding that policy to include all SBA-guaranteed loans.”

Forbes noted that the updated policy “applies specifically to SBA-backed credit programs” and will not “prevent non-citizens from owning businesses in the United States, nor does it prohibit Legal Permanent Residents from accessing conventional bank loans or private capital.”

Speaking with Fox Business host Maria Bartiromo last month, Loeffler called the move a “common-sense measure that the American people want to see.”

.@SBA_Kelly on ensuring that illegals don’t receive SBA loans: “This is just a common sense measure that the American people want to see—that their tax dollars are not supporting the ability of noncitizens to get resources that should be available to hardworking American small… pic.twitter.com/U5tcGcXF2D

— Rapid Response 47 (@RapidResponse47) February 20, 2026

“The requirement will apply to its Surety Bond and Microloan programs and is an expansion of changes made in February to the SBA’s 504 and 7(a) programs — loans for small businesses looking to finance working capital, equipment or acquisitions. Those earlier reforms prohibited SBA loans from going to businesses that are partially or wholly owned by foreign nationals,” Fox News noted.

“The Surety Bond helps new or inexperienced contractors bid for government jobs that require bonding. Similarly, the Microloan program looks to offer small businesses loans of up to $50,000 through approved third-party intermediaries,” the outlet added.

SBA spokesperson Maggie Clemmons was hopeful the agency would be able to offer “even more capital in the near future, pending legislation to increase SBA loan limits for small businesses that are hiring, building, and producing in America.”

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