SBA Bans Foreign Nationals from Accessing SBA-backed Loans

On Mar 10, 2026

The U.S. Small Business Administration (SBA) has issued a new policy notice to ban foreign nationals and non-citizens from accessing SBA-guaranteed small business loans. The latest notice, which applies to the agency’s Surety Bond and Microloan programs, builds on the policy change implemented earlier this month – which made any small business owned in whole or in part by a foreign national ineligible for the agency’s flagship 504 and 7(a) loan programs. Small business owners applying for any SBA loan program must be U.S. citizens or U.S. nationals with their principal residence in the United States.

SBA Administrator Kelly Loeffler commented, “Last month, we made it clear that SBA would not allow foreign nationals to access our core small business loan programs – we are expanding that policy to include all SBA-guaranteed loans. 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.”

In Fiscal Year 2025, SBA approved 3,358 loans for small businesses owned in part by a lawful permanent resident (LPR), largely during the Biden administration – representing 4% of the agency’s total 85,000 loans approvals. With a finite lending authority and record demand for capital, SBA is prioritizing the agency’s guaranteed loan programs for American citizens. The new policy will take effect 30 days after publication.

The latest policy builds on reforms by Administrator Loeffler to assist American small business owners. Last year, the agency implemented citizenship verification across its loan programs to cut off access to loans for illegal aliens. The agency also announced efforts to relocate SBA field offices out of sanctuary cities that  do not comply with U.S. Immigration and Customs Enforcement (ICE), jeopardizing both the safety of SBA employees and small business owners.

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