By James Morley III | Wednesday, March 11, 2026 at 9:51 p.m. EDT
Small Business Administration Administrator Kelly Loeffler announced Wednesday that taxpayer-backed small business loans will be reserved exclusively for U.S. citizens, implementing a policy that bans foreign nationals from receiving federally guaranteed SBA loans.
“We have taken the step to ban foreign nationals from receiving small business loans guaranteed by the federal government,” Loeffler said in a statement. “Our taxpayers, our hardworking Americans, are not going to be putting guarantees on their business loans.”
The change follows the Small Business Administration’s review of lending practices after adding a citizenship requirement last year.
“This is the first administration that has ever asked the question about citizenship on Small Business Administration lending,” Loeffler said. “We started collecting data, and we saw that, sure enough, SBA loans were going out to foreign nationals.”
According to Loeffler, approximately 3.9% of SBA loans issued last year — roughly 3,500 out of 85,000 — went to foreign nationals.
“But it’s stopping. It’s over,” she said. “We’re banning not just the 7(a) flagship loan program, but things like surety bonds and microloans. These are for American citizens, and we’re unapologetic about it.”
Loeffler compared the policy to voting rights: “Just like you should be a U.S. citizen to vote in our elections, you should be a U.S. citizen to get our government benefits.”
She cited an example uncovered after the Trump administration took office: “We caught an illegal alien that had been approved for a loan under the Biden administration — a $750,000 loan that was about to close.”
“Thankfully, we came into office and were able to stop that loan,” Loeffler said.
Loeffler criticized the previous administration for promoting lending programs “on the backs of hardworking Americans,” adding that the SBA has since “restructured the loan program” and “put the guardrails back in place.”
In response to criticism from a left-leaning think tank that the policy would harm immigrant communities and small businesses, Loeffler stated opponents were putting “America last.”
“The radical left is all about America last, and it’s disgusting,” she said. “This is about Americans first, unapologetically, and making sure that our programs finally, for the first time ever, work for the American people.”
