Ranking Member Edward J. Markey and House Small Business Committee Ranking Member Nydia M. Velázquez have raised concerns over recent policy changes by the U.S. Small Business Administration (SBA). In a letter addressed to SBA Administrator Kelly Loeffler, the lawmakers questioned the Trump administration's efforts that could limit economic opportunities for American entrepreneurs, particularly immigrants.
The SBA has announced plans to close seven field offices in cities labeled as "sanctuary cities" and restrict loan access for small businesses with certain noncitizen owners and employees. This move is seen as a significant shift from 25 years of SBA guidance and is perceived as unwelcoming to immigrants pursuing entrepreneurial opportunities in the United States.
The letter points out a specific policy change affecting 7(a) and 504 loans, as well as Microloans, which now cannot be extended to any small business owned or operated by certain noncitizens. These groups include foreign nationals and immigrants with specific legal statuses such as asylees, refugees, visa holders, and DACA recipients.
Ranking Members Markey and Velázquez expressed their disapproval: “SBA’s policy changes are a solution in search of a problem... Our committees have never seen any evidence... that meaningful numbers of individuals in the United States without legal authorization are receiving access to SBA financing.”
Additionally, the lawmakers criticized the political targeting of regional office relocations and legislation that could remove all field resources from sanctuary jurisdictions. They stated: “We firmly believe that our cities should be safe... However, this Administration is playing political games with people’s livelihoods...”
They requested answers by July 29, 2025, on several issues including deviations from past policies regarding noncitizen-owned businesses' loan eligibility and concerns about discrimination based on national origin or citizenship status due to these policies.
