Green Card Holders Will No Longer Be Eligible for Government Business Loans Starting March 1

The U.S. Small Business Administration (SBA) announced that, effective March 1, green card holders will be excluded from federal business loan programs. The change was reported by Associated Press.

The SBA had previously revised its ownership requirements for businesses seeking government-backed loans. Under those rules, eligible companies were required to be 100% owned by U.S. citizens or permanent residents. In December, a limited exception was introduced, allowing up to 5% ownership by non-citizens. That exception has now been eliminated, and green card holders are also excluded from SBA loan programs.

According to the agency, the changes reflect a renewed focus on supporting U.S. jobs and a stricter approach to the use of taxpayer funds.

The decision has drawn criticism from small business advocacy groups. Small Business Majority warned that the policy could slow small business growth, noting that immigrants in the U.S. are more likely to start businesses than individuals born in the country.

It is important to understand that this change affects access to government-backed loan programs, not the general right to do business in the United States.Green card holders can still open and operate companies, but their access to financing through federal programs is now significantly limited. This should be taken into account in advance when planning a business and its sources of funding.