The U.S. Small Business Administration (SBA) has implemented a significant policy shift by barring foreign nationals and non-citizens from accessing its loan services. This move emphasizes the administration’s focus on prioritizing American citizens when it comes to federal resources. According to SBA Administrator Kelly Loeffler, this initiative aims to promote economic growth and job creation within the United States. Loeffler stated, “The Trump SBA is committed to driving economic growth and job creation for American citizens.”
This policy will apply specifically to the SBA’s Surety Bond and Microloan programs, marking an expansion of earlier changes made in February to the 504 and 7(a) programs. Those prior reforms barred loans from being awarded to businesses either partially or entirely owned by foreign nationals. Such measures indicate a clear intent to reallocate funding to ventures that directly benefit American citizens and to strengthen the overall economic fabric of the nation.
The Surety Bond program is designed to help new and inexperienced contractors secure government jobs that require bonding, while the Microloan program allows small businesses to obtain loans of up to $50,000 through approved intermediaries. Loeffler noted, “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.” This clear message underlines the administration’s determination to overhaul the loan service framework to better serve U.S. interests.
The announcement comes amid broader changes made by the SBA to ensure its investments align with the interests of U.S. citizens. In 2025, the agency began enforcing requirements for citizenship verification across all its loan programs and declared its intent to vacate offices in sanctuary cities—areas where local governments limit cooperation with federal immigration enforcement. These steps reflect a concerted effort to reshape the agency’s operational strategies.
Data from the SBA revealed that approximately 3,300 loans are currently extended to businesses that are partially owned by lawful permanent residents, constituting about 4% of the SBA’s total loan portfolio, which stands at around 85,000 loans. By framing its policy changes in the context of resource allocation, the SBA underscores its commitment to ensuring that American citizens are the primary beneficiaries of federal loan programs. Loeffler explained, “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.”
The expanded ban on foreign nationals accessing SBA loans will take effect 30 days following the announcement. This transformation in policy reflects a strategic move towards reinforcing the agency’s core mission of supporting American entrepreneurs in a challenging economic landscape.
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