The Small Business Administration (SBA) recently announced that non-citizen permanent residents (green-card holders) will no longer be eligible to receive SBA-backed loans. This change, effective March 1, 2026, could have significant impacts on small businesses and the broader economy. The CLBA has reviewed the update and provides a concise breakdown of what it means in practice.
The Changes, Simplified
- SBA-backed loans will now only be available to businesses fully owned by U.S. citizens or nationals.
- Legal permanent residents can no longer hold any ownership stake in an SBA borrower.
- Non-citizens can still operate businesses and access conventional loans, but SBA-guaranteed financing is no longer an option.
- Applications that receive an SBA loan number before March 1, 2026 may proceed under prior eligibility rules.
Read more here: Commercial Loan Broker Association Website