Photo: Alamy
The Small Business Administration under President Donald Trump announced Monday that it is expanding a policy barring foreign nationals from receiving federal dollars through additional small-business loan programs.
SBA Administrator Kelly Loeffler said the move is intended to ensure that federally backed financing supports American citizens starting and growing businesses in the United States.
“The Trump SBA is committed to driving economic growth and job creation for American citizens,” said SBA Administrator Kelly Loeffler.
“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. 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,” Loeffler added.
Under the expanded policy, foreign nationals will not be eligible for the SBA’s Surety Bond or Microloan programs. The microloan program provides loans of up to $50,000 to small businesses and nonprofit childcare centers.
Loeffler said the change reflects the agency’s responsibility to prioritize American applicants because Congress limits the amount of SBA lending authority each year.
Last month, Loeffler also announced that applicants seeking the SBA’s primary small-business loan programs would be required to be U.S. citizens and to have permanent residence in the United States.
“SBA is requiring that 100% of all direct and/or indirect owners of a small business applicant be U.S. Citizens or U.S. Nationals who have their Principal Residence in the United States, its territories, or possessions,” she wrote.
According to SBA data, during fiscal year 2025, the agency approved nearly 3,400 loans for small businesses partially owned by foreign nationals. Those loans accounted for about four percent of the roughly 85,000 loans approved that year.
