On Friday, Small Business Administration (SBA) Administrator Kelly Loeffler unveiled a new policy aimed at restricting access to SBA loans for foreign nationals and non-citizens. In her statement, she declared, “The Trump SBA is committed to driving economic growth and job creation for American citizens.” This commitment underscores a clear priority for American entrepreneurs in an increasingly competitive lending landscape.
The new guidelines, effective March 1, 2026, will require all owners of a business seeking SBA financing to be U.S. citizens or U.S. nationals. This move eliminates any previous allowance for foreign ownership, even in small amounts, and explicitly bars legal permanent residents from participating in SBA loan programs. Loeffler emphasized the urgency of these changes by stating, “Our responsibility is clear: the limited resource of SBA financing must prioritize American citizens who are building businesses and creating jobs here at home.”
This updated policy extends previous changes made in February, which had already prohibited loans to businesses partially or wholly owned by foreign nationals through the SBA’s flagship programs, 504 and 7(a). The aim is straightforward: to ensure that American job creators have better access to the financial support they need to thrive.
In a detailed press release, the SBA reiterated its commitment to backing U.S. small businesses, specifically targeting the Surety Bond and Microloan Programs. These programs are essential for many small business owners, providing necessary support for those seeking to secure government contracts or obtain smaller loans up to $50,000 through intermediaries.
Loeffler’s administration has also made substantial efforts to root out fraud within SBA programs. Earlier this year, the agency uncovered nearly $400 million in potentially fraudulent loans in Minnesota alone. This discovery, made during a comprehensive review of Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) approvals, led to the suspension of 6,900 Minnesota borrowers suspected of wrongdoing. Similarly, in California, 111,620 borrowers were suspended after fraud was linked to $8.6 billion in loans. This history of oversight indicates a strong focus on ensuring that aid goes only to those who truly need it: American citizens and businesses.
Overall, Loeffler’s new policy marks a decisive step in controlling how SBA funding is allocated. It reinforces the agency’s mission to support American job creators while maintaining vigilance against misuse of government financial resources.
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