By MAE ANDERSON, AP Business Writer
NEW YORK (AP) — The Small Business Administration said in a policy note that green card holders won’t be allowed to apply for SBA loans, effective March 1.
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The move is the latest by the SBA as it works to tighten loan restrictions and restructure the agency.
Last year, it tightened a requirement that businesses applying for loans must be 100% owned by U.S. citizens, U.S. nationals, or lawful permanent residents, up from a 51% standard.
In December, it issued a policy note that said up to 5% of a business could be non-citizen owned. But the current policy rescinds that, as well as making lawful permanent residents ineligible, too.
The SBA did not respond to a request for comment.
The SBA doesn’t give out direct loans, except when they’re related to disasters, but it works with lenders to distribute loans to small businesses. The loans typically have better rates than traditional loans.
Small business advocacy group the Small Business Majority said the move is “a decision that will limit the growth of small businesses and jobs throughout the United States.”
“The latest decision by SBA fails to recognize that immigrants are twice as likely to start a business as native-born U.S. citizens,” said Small Business Majority CEO John Arensmeyer. “Given that reality, SBA’s severe restrictions will have a negative impact on small business creation throughout this country for years to come.”
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