Green Card Holders Will Lose Access to These Loans Starting in March
SBA loan rules are changing in March, and thousands of lawful permanent residents with a Green Card could lose access to this support.
Posted on 11/02/2026 at 16:55
Publicado el 11/02/2026 a las 16:55
- SBA Loans Restrictions Begin in March
- Green Card Excluded
- SBA Loans Limited
According to ViveUSA, lawful permanent residents in the United States will face a key change beginning in March.
Starting March 1, Green Card holders will no longer be eligible for certain federal loans.
The measure directly impacts immigrant small business owners who operate legally in the country.
The change was announced by the Small Business Administration (SBA) through an internal memorandum.
The decision limits access to the 7(a) loan program, one of the most widely used financing options for small businesses.
These loans allow multiple uses and can reach amounts of up to $5 million.
The new restriction focuses on business ownership and the residency status of business owners.
What SBA Loans Restrictions Begin in March
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eginning March 1, only businesses that are 100% U.S.-owned will qualify for 7(a) loans.
Additionally, business owners must reside within U.S. territory.
This explicitly excludes lawful permanent residents, even if they live and work in the country.
The SBA eliminated any margin for foreign ownership participation in applicant businesses.
Until last December, the program allowed up to 5% of a business to be owned by a foreign national.
That 5% could include a Green Card holder or a U.S. citizen residing abroad.
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With the new memorandum, that possibility is completely eliminated.
Before these adjustments, small businesses could qualify if 51% of ownership belonged to a U.S. citizen residing in the United States.
That criterion was modified during the administration of President Donald Trump.
The result is a more restrictive policy that takes effect immediately in March, formalizing the SBA loans Green Card restrictions.
Why It Matters for Immigrants and Small Businesses
The start of the restriction in March marks a turning point for thousands of immigrant entrepreneurs.
Many Green Card holders rely on 7(a) loans to start or expand their businesses.
The exclusion limits access to federal capital, even for individuals with legal immigration status.
The 7(a) program is considered one of the SBA’s most popular financial tools.
It can be used for working capital, debt refinancing, and operational expansion.
The new policy removes that option for permanent residents, regardless of their business track record.
The change also redefines who can benefit from federal small business support programs.
The decision has been interpreted as an additional barrier for the legal immigrant community.
All of this takes effect on a clear date: March 1, marking the beginning of the SBA loans Green Card restrictions.
Political Criticism and Lack of Response
The measure has sparked strong criticism in Congress.
Senator Edward J. Markey and Representative Nydia Velázquez publicly condemned the change.
Both are senior members of the Small Business Committees in the Senate and the House.
In a statement, they said the SBA has chosen to prohibit Green Card holders from accessing loans.
“Instead of supporting legal immigrants who work hard to start or expand a business, Trump’s SBA is choosing hate,” they said.
Senator Markey also revealed prior concerns about citizenship requirements.
He stated that last September he received direct information from SBA lenders.
That information warned of issues in the citizenship verification process.
In December, Democrats on the Senate Small Business Committee sent a letter to the SBA.
In it, they reiterated their concerns and pointed to a decline in the volume of loans granted.
So far, no official response has been issued by the agency.
Meanwhile, March 1 remains the firm start date for the SBA loans Green Card restrictions.
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