Policy Change Eliminates Green‑Card Eligibility The Small Business Administration issued a notice on February 2 stating that, beginning March 1 2026, lawful permanent residents may not own any percentage interest in an SBA loan applicant or borrower, overturning the December 2025 rule that allowed up to 5 % non‑citizen ownership and reinstating a 100 % U.S. citizen or national ownership requirement [1][2].

Rationale Emphasizes Protection of Taxpayer Funds SBA spokesperson Maggie Clemmons told the Associated Press the restriction safeguards federal money for American job creators, asserting that limiting guarantees to U.S. citizens and nationals ensures taxpayer dollars support domestic entrepreneurs; the agency’s loan‑guarantee model with private lenders remains unchanged [2].

Impact on Immigrant Entrepreneurship Highlighted Small Business Majority warned that immigrants are twice as likely to start businesses as native‑born citizens, and the new rule could curb small‑business formation and job growth for years, echoing concerns that the policy will diminish immigrant contributions to the economy [1][2].

Context of Broader Lending and Enforcement Trends The rule aligns with tighter SBA lending guidelines adopted last year and coincides with the Trump administration’s intensified immigration enforcement; despite guaranteeing $44.8 billion in FY 2025 loans, the agency cut its workforce by 43 % in March 2025, reflecting a shift toward stricter eligibility standards [1].