On December 19, the Small Business Administration (SBA) announced a policy allowing up to 5% of a business to be owned by foreign nationals but excluded Chinese citizens from eligibility without providing much explanation. The SBA has since issued a new policy notice that rescinds the previous announcement and will bar any small businesses with green card holders as owners from receiving SBA loans, effective March 1.
Ranking Members Markey and Velázquez responded with criticism of the administration’s actions. “The Trump administration is stoking the flames of hatred, spreading fear and confusion among immigrants and small business owners. Rather than support hard-working legal immigrants to start or expand a business, the Trump SBA is choosing hatred by barring green card holders from receiving an SBA loan. The Administration’s message to immigrants is clear: you are not welcome to pursue the American Dream,” said Ranking Members Markey and Velázquez.
Both lawmakers have advocated for small business owners and immigrants who rely on SBA loans to launch or operate their businesses, generate employment, and contribute to local economies.
In July, Markey and Velázquez sent a letter to the SBA expressing concerns about new citizenship verification requirements that mandate small businesses seeking SBA loans be entirely owned by U.S. citizens, nationals, or legal permanent residents. In September, Markey heard directly from lenders about challenges related to these requirements. In December, Markey joined all Democratic members of the Senate Small Business Committee in sending another letter highlighting ongoing concerns and noting a decrease in lending volume attributed to these rules. According to their statements, despite documented feedback from lenders and borrowers regarding these requirements, the SBA has not replied to either letter.
The Senate Small Business and Entrepreneurship Committee operates in Washington, D.C., where it examines federal budget matters and provides Congress with policy options on budget components. The committee supports informed decision-making on national fiscal priorities through oversight and planning processes (official website). It also contributes nonpartisan analysis through its oversight role over the Congressional Budget Office (official website).
The committee was established under the Congressional Budget and Impoundment Control Act of 1974 (official website) and participates in congressional budget activities such as resolutions and reconciliation instructions (official website). Lindsey Graham serves as chairman while Jeff Merkley is ranking member (official website).
