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SBA says legal permanent residents will be ineligible for its loan program, effective March 1
The Small Business Administration tightens loan rules by excluding lawful permanent residents from eligibility, reversing a December policy that allowed up to 5% non-citizen ownership.
- On March 1, the Small Business Administration said lawful permanent residents won’t be eligible to apply for SBA loans, tightening loan restrictions as part of agency restructuring.
- Last year, the SBA tightened ownership requirement rules by raising thresholds from 51% to 100%, and in December issued a policy note allowing 5% non-citizen ownership.
- The SBA generally works with private lenders to distribute loans, and SBA-backed loans typically offer better rates than traditional loans for small businesses seeking SBA loans.
- Small Business Majority warned that the move will limit small-business growth and jobs, while CEO John Arensmeyer said it ignores that immigrant entrepreneurs start businesses twice as often as native-born citizens.
- The current policy rescinds December's guidance and explicitly makes lawful permanent residents ineligible, while the SBA did not respond to requests for comment about the change.
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Permanent residents of the United States (those with ‘green card’) will no longer qualify for loans granted by the Small Business Administration (SBA) as of March 1, as announced by the agency in a memorandum limiting profit to 100 percent US-owned companies whose owners reside in the country. The SBA had already tightened the requirements for these loans, known as 7(a), last December, by allowing only companies with up to 5 percent of their own…
·Mexico
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Permanent residents in the US (those with 'green card') will no longer qualify for loans granted by the US.
Associated Press News+35 Reposted by 35 other sources
SBA says legal permanent residents will be ineligible for its loan program, effective March 1
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.
·United States
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Total News Sources47
Leaning Left4Leaning Right5Center33Last UpdatedBias Distribution79% Center
Bias Distribution
- 79% of the sources are Center
79% Center
C 79%
12%
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