Any business that’s even partly owned by a permanent legal resident with a green card is no longer eligible for loans from the Small Business Administration, eliminating a longtime source of financing for immigrants that advocates say will discourage job creation and harm the economy. 

It could not immediately be determined how many, if any, bev/al suppliers, wholesalers or retailers will be affected by this change in policy.

The SBA limited access to its loans to U.S. citizens and nationals only starting in March, and expanded that policy to SBA-backed loans beginning in April. On top of that,

SBA loans have been important to immigrant entrepreneurs because they typically are low-interest and available to those without an established credit history. The agency has also backed loans by private funders, providing a government guarantee for people banks may deem riskier. Now, all those loans are off the table for owners and would-be owners of restaurants and more who hold green cards. 

The SBA has a limited lending capacity, said Maggie Clemmons, a spokesperson for the agency. “The agency’s rule change will help ensure more American citizens have access to funding previously granted to noncitizens,” she said in an email. 

The SBA approved 3,358 loans for small businesses owned partly by a lawful permanent resident in fiscal year 2025, largely during the Biden administration, Clemmons said. That represented 4% of the 85,000 loans approved by the agency. – Cal Matters contributed to this story.