A recent shift in Small Business Administration (SBA) policies has sparked serious concerns among small business owners, particularly those with immigrant ties. According to a letter from Ranking Member Edward J. Markey (D-Massachusetts) and 18 other Democratic lawmakers, new citizenship verification requirements imposed by the Trump administration could be significantly stifling access to crucial SBA lending programs.
The changes, which rolled out in June, have led to a staggering 46% reduction in small business lending from June to August 2025. This drop comes on the heels of new eligibility criteria that have tightened the accessibility of SBA loans for businesses with even a single non-citizen owner, investor, or key employee. While many small companies depend on these loans to fuel growth and expansion, the recent standards bar those with Deferred Action for Childhood Arrivals (DACA) status, certain types of visa holders, and others from obtaining financing—even if the business is primarily owned by U.S. citizens.
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