Big change for California small businesses: No more SBA loans for non-citizens
The US Small Business Administration has introduced a new rule requiring 100% ownership by US citizens or nationals for businesses to be eligible for SBA loans, effective March 1, 2026. This change will reduce access to affordable financing for small businesses with immigrant or mixed-status ownership, potentially impacting local economies and business growth.
The US Small Business Administration has changed its loan eligibility rules. Starting March 1, 2026, only businesses 100% owned by US citizens or nationals can apply for SBA 7(a) or 504 loans. Lawful permanent residents, or green card holders, are no longer eligible. The new rule applies to all owners, including indirect owners. Existing borrowers are not affected, but future ownership changes must comply with the new requirements. The change may limit access to affordable financing for small businesses owned by lawful permanent residents, potentially harming local economies and business growth.
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