A new policy change under President Trump is set to significantly impact green card holders who own or plan to start small businesses in the United States.
According to a policy notice released this week, the Small Business Administration (SBA) will no longer approve or guarantee loans for businesses with any ownership stake held by green card holders beginning March 1.
What the SBA Policy Change Means
The SBA, a federal agency created in 1953, helps small businesses access capital through government-backed loan programs, counseling, and contracting assistance. Under the updated rules, those loan programs will now be limited exclusively to businesses fully owned by U.S. citizens or U.S. nationals.
The policy states that green card holders may not own any percentage of a business applying for an SBA loan. Even a one-percent ownership stake would automatically disqualify a business from eligibility.
New Ownership Requirements Explained
Under the revised guidelines:
- 100% of direct and indirect ownership must be held by U.S. citizens or U.S. nationals
- Owners must maintain their primary residence within the United States or its territories
- Businesses with any foreign ownership, including lawful permanent residents, will be ineligible
The SBA also formally rescinded a prior exception that allowed up to 5 percent ownership by individuals or entities based outside the United States. That exception will no longer apply after March 1.
Part of a Broader “America First” Shift
The move follows tighter lending standards introduced last year and aligns with the Trump administration’s broader effort to prioritize American workers, taxpayers, and domestic job creation.
In a statement provided to the Associated Press, SBA spokesperson Maggie Clemmons said the agency is refocusing its mission on American citizens.
Clemmons said the agency is focused on making sure taxpayer funds are directed toward supporting American job creators and business innovators across all SBA programs.
SBA Performance Under Trump
Despite a significant workforce reduction last year — including a 43 percent cut in staffing — the SBA reported record lending activity in fiscal year 2025.
In a September announcement, the agency said it guaranteed more than 84,000 small business loans totaling $44.8 billion, marking the highest volume of capital delivered in its history. The majority of those loans were approved after President Trump returned to office.
Critics Push Back, Supporters Applaud
Some business advocacy groups criticized the decision, arguing it could discourage entrepreneurship. Small Business Majority CEO John Arensmeyer claimed the policy could limit future business creation.
Supporters counter that the change restores accountability and ensures federally backed loans benefit American citizens at a time of rising costs, high interest rates, and economic uncertainty.
Trump Administration Praises Results
SBA Administrator Kelly Loeffler has credited President Trump’s economic agenda — including tax relief, deregulation, and fair-trade policies — for rising confidence among small business owners nationwide.
“Main Streets across the country are making an unprecedented comeback,” Loeffler said in a prior statement, pointing to increased hiring, investment, and optimism.
When the Policy Takes Effect
The new SBA loan eligibility rules officially go into effect on March 1.