The U.S. Small Business Administration (SBA) has announced a new policy banning foreign nationals and non-citizens from accessing its loan services, a move the agency says is intended to prioritize federal resources for American citizens.
“The Trump SBA is committed to driving economic growth and job creation for American citizens,” SBA Administrator Kelly Loeffler said in a statement on Friday.
The policy will apply to the agency’s Surety Bond and Microloan programs, expanding restrictions introduced in February to the SBA’s 504 and 7(a) loan programs. Those earlier changes barred businesses that are partially or wholly owned by foreign nationals from receiving SBA-backed financing.
The Surety Bond program helps new or inexperienced contractors secure bonding required to bid on government projects. The Microloan program provides small businesses with loans of up to $50,000 through approved third-party 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 announcement follows broader steps by the SBA aimed at directing agency resources toward U.S. citizens. In 2025, the agency began requiring citizenship verification across its loan programs and said it would relocate offices from so-called sanctuary cities, where local governments limit cooperation with federal immigration enforcement.
According to SBA data, about 3,300 loans are currently held by small businesses partially owned by lawful permanent residents, most of which were issued during the Biden administration. Those loans represent about 4% of the agency’s roughly 85,000 total loans.
SBA officials say the new policy is intended to ensure limited federal lending resources are directed toward American entrepreneurs.
“With our lending authority capped annually by Congress and amid record demand for access to capital, our responsibility is clear: the limited resource of SBA financing must prioritize American citizens who are building businesses and creating jobs here at home,” Loeffler said.
The expanded policy is scheduled to take effect 30 days after the agency’s announcement.
