Frank Rondel
The U.S. Small Business Administration (SBA) announced that effective March 1, Green Card holders will no longer be eligible for SBA loans, a policy affecting businesses owned by legal permanent residents, reports customreceipt.com via Times of India. According to the new rules, all direct and indirect owners of a business applying for SBA funding must be U.S. citizens or nationals residing in the United States or its territories. The policy removes the previous exception allowing up to 5% ownership by foreign nationals or U.S. citizens and Green Card holders living abroad.
This update directly impacts Indian Green Card holders who seek SBA loans. The SBA operates two main loan programs: standard business loans for working capital and equipment, and 504 loans for commercial real estate and heavy equipment purchases. Green Card holders must become naturalized citizens to qualify, or secure any required loan before March 1. Frank Gallegos, executive director of Fresno-based non-profit Cen Cal Business Finance Group, expressed surprise at the change, noting that roughly 10% of their 504 loan projects involved Green Card holders, which previously contributed significantly to local employment and revitalization of idle properties.
The move has drawn criticism from Congressional Democrats. Senate Small Business Committee Ranking Member Edward Markey (D-Mass.) and House Small Business Committee Ranking Member Nydia Velázquez (D-N.Y.) described it as a blow to immigrant entrepreneurs. They highlighted that this decision comes shortly after the SBA had briefly allowed 5% foreign ownership, excluding Chinese nationals. Markey and Velázquez argued that the policy contradicts the SBA’s mission to support small business growth and harms legal immigrants seeking to expand their businesses.
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