House Small Business Committee Ranking Member Nydia Velázquez (D-N.Y.-7) and Ranking Member Edward J. Markey (D-Mass.) today condemned the actions of the Small Business Administration (SBA) after it announced that small businesses with legal permanent residents will be barred from receiving SBA loans.
On December 19, SBA announced that it would allow 5% of a business to be owned by foreign nationals but singled out Chinese citizens as ineligible individuals with little explanation. SBA's new policy notice rescinds SBA's December notice and bars any small businesses with owners that are green card holders from receiving an SBA loan, effective March 1.
"The Trump administration is stoking the flames of hatred, spreading fear and confusion among immigrants and small business owners. Rather than support hard-working legal immigrants to start or expand a business, the Trump SBA is choosing hatred by barring green card holders from receiving an SBA loan. The message to immigrants is clear: you are not welcome to the American Dream," said Ranking Members Velázquez and Markey.
In July 2025, Ranking Members Velázquez and Markey sent a letter to the SBA expressing serious concerns with the agency's new, draconian citizenship verification requirements that require small businesses seeking SBA loans to be 100% owned by U.S. citizens, nationals, and legal permanent residents.
Ranking Member Velázquez has been a vocal opponent of efforts to limit SBA loans to legal permanent residents, speaking out against H.R. 2966 - American Entrepreneurs First Act of 2025 in the House. She has consistently heard from small business owners and lenders in her district and across the country about the potential devastating impact these citizenship verification requirements would have on immigrant entrepreneurs.
Despite documented concerns from SBA lenders and borrowers about the citizenship requirements, SBA has provided no justification for these policies and has not responded to calls from Ranking Member Velázquez and her colleagues to reverse them.
