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SBA Bars Legal Residents From Loans, Lawmakers Push Restoration

6/12/2026

Summary

Story summary

The SBA barred legal permanent residents from its loans, its first such restriction.
In March, the SBA announced loan programs will fund only U.S. citizens, activating the rule.
Agency head Kelly Loeffler said the loans are for American citizens and gave no apology.
Senators Ed Markey and Representative Nydia Velázquez introduced legislation to restore eligibility because adviser Eda Henries said lenders are pausing underwriting, leaving some businesses unfunded.

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Story summary

The SBA barred legal permanent residents from its loans, its first such restriction.
In March, the SBA announced loan programs will fund only U.S. citizens, activating the rule.
Agency head Kelly Loeffler said the loans are for American citizens and gave no apology.
Senators Ed Markey and Representative Nydia Velázquez introduced legislation to restore eligibility because adviser Eda Henries said lenders are pausing underwriting, leaving some businesses unfunded.