SBA Loan Rule Change Blocks Green Card Holders from Funding

The U.S. Small Business Administration (SBA) has changed its loan rules. Since March, only businesses fully owned by American citizens can receive approval. The move has left many permanent residents, including green card holders, without access to funding. Sayuri Tsuchitani, a green card holder, once used an SBA loan to launch Japanese Headspa. Her business grew rapidly, hitting a million dollars in sales and creating several jobs. Cristina Foanene, a former Romanian investor, also benefited from multiple SBA loans to expand her glass company in Fresno, California. The loans allowed her to hire 30 local workers.

The sudden policy shift disrupted many business owners mid-application. Some were already in the underwriting process when the new rule took effect. Eda Henries, a small business adviser, has raised concerns about the consequences. Without SBA support, entrepreneurs may seek riskier or predatory lending options. The new rules could prevent some business owners from starting or expanding their companies. This may impact the U.S. economy, as foreign-born residents make up about 15% of the population but run 20 to 25% of businesses.