Green card holders lose SBA access
Green card holders have lost eligibility for certain SBA loan programs, cutting off a key financing source for immigrant entrepreneurs and small‑business clients (x.com).
The SBA published Policy Notice 5000‑876441 amending SOP 50‑10‑8, with the changes marked effective March 1, 2026. (sba.gov) The notice requires that 100% of all direct and indirect owners of a loan applicant be U.S. citizens or U.S. nationals who principally reside in the United States, and it rescinds Procedural Notice 5000‑872050. (Compliance Alliance) (sba.gov) The revisions explicitly govern the agency’s two primary programs for small‑business capital—7(a) loans and CDC/504 loans—by incorporating the citizenship and residency requirements into SOP 50‑10‑8. (sba.gov) (Politico) SBA guidance says any application that received an SBA loan number before March 1, 2026 may still close under the prior rules, while new or unnumbered applications on or after that date must meet the updated citizenship tests. (VisaVerge) (MilestonePointInc) The policy applies to borrowers, operating companies and eligible passive companies and extends through ownership layers by requiring lenders to trace both direct and indirect equity holders. (The Business Journal) (NAGGL) SBA Administrator Kelly Loeffler’s office and spokesperson Maggie Clemmons framed the change as prioritizing U.S. job creators, while House and Senate Democrats including Rep. Nydia Velázquez and Sen. Ed Markey publicly condemned the move. (Politico) Trade groups and lenders reported immediate transactional disruption, citing collapsed deals (including reported sales worth $2.5 million and $5 million) and asking SBA field office Lender Relations Specialists for implementation guidance. (sbc.senate.gov) (NAGGL)
