New SBA Policy Bars Non-Citizens from Loans, Impacting California Small Businesses

A new federal policy from the Small Business Administration (SBA) has restricted loan guarantees exclusively to U.S. citizens and nationals, barring green card holders, asylum seekers, and DACA recipients from access to capital. Advocates in California, where immigrants own 40% of small businesses and contribute $20 billion to the state economy, warned that the shift will force entrepreneurs toward predatory lenders and significantly hinder regional job creation.