The U.S. Small Business Administration (SBA) announced a new policy that will bar foreign nationals and non-citizens from accessing its loan programs, expanding a broader effort by the Trump administration to prioritize federal financial support for American citizens.
SBA Administrator Kelly Loeffler said the move is intended to ensure that taxpayer-backed resources are directed toward businesses owned by Americans.
“The Trump SBA is committed to driving economic growth and job creation for American citizens,” Loeffler said in a statement Friday.
Under the new policy, citizenship requirements will now apply to the agency’s Surety Bond and Microloan programs. The decision builds on reforms implemented earlier in February, when the SBA prohibited businesses that are partially or fully owned by foreign nationals from receiving loans under the agency’s 504 and 7(a) programs, two of the SBA’s most widely used lending tools.
Those programs typically provide financing for working capital, equipment purchases, and business acquisitions.
The Surety Bond program helps small or inexperienced contractors secure the bonding needed to bid on government projects, while the Microloan program provides loans of up to $50,000 to small businesses through approved nonprofit intermediaries.
“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,” Loeffler said.
The policy change is part of a wider series of adjustments at the agency aimed at refocusing federal resources on American citizens.
In 2025, the SBA began requiring citizenship verification across its lending programs. The agency also announced plans to relocate offices out of so-called sanctuary cities, areas where local governments limit cooperation with federal immigration enforcement.
According to SBA data, the agency currently has about 3,300 loans issued to small businesses partially owned by lawful permanent residents, most of which were approved during the Biden administration. Those loans represent roughly 4% of the SBA’s total portfolio of about 85,000 loans.
SBA officials said the new restrictions reflect the limited amount of capital available through federally backed loan programs.
“With our lending authority capped annually by Congress and amid record demand for access to capital, our responsibility is clear,” Loeffler said. “The limited resource of SBA financing must prioritize American citizens who are building businesses and creating jobs here at home.”
The expanded policy is scheduled to take effect 30 days after the announcement.
