Major Policy Shift Hits Immigrant Entrepreneurs in the U.S: Beginning March 1, 2026, U.S. Green Card holders (Lawful Permanent Residents – LPRs) will no longer be eligible for any Small Business Administration (SBA) government-backed loans, following a sweeping policy change by the U.S. government.
The new rule requires 100% ownership of a business to be held by U.S. citizens or nationals residing in the United States in order to qualify for SBA-backed financing. This means any business with even a small ownership stake by a Green Card holder is now disqualified from SBA programs.
This change affects all SBA loan categories, including:
- SBA 7(a) Loans – the most common SBA small business loan
- SBA 504 Loans – used for commercial real estate and equipment
- SBA Microloans
What Changed?
Previously, Green Card holders were eligible for SBA loans as long as:
- The business was at least 51% owned and controlled by individuals lawfully residing in the U.S.
- Ownership included U.S. citizens, nationals, or lawful permanent residents
However, the revised policy now completely removes lawful permanent residents from eligibility, reversing decades of inclusive lending rules.
Under the new requirements:
❌ Any business with direct or indirect LPR ownership — even 1% — will not qualify for SBA-backed financing.
Who Is Affected?
This rule impacts:
- Immigrant-owned small businesses
- Startups founded by Green Card holders
- Mixed-ownership companies with both citizens and permanent residents
- Family-owned businesses where one partner holds LPR status
Thousands of diaspora entrepreneurs who relied on SBA-backed loans for startup capital, working capital, equipment, or real estate will now be forced to seek alternatives.
What Are the Alternatives for Green Card Holders?
Although SBA loans are no longer an option, private financing remains available.
Green Card holders can still apply for:
- Conventional bank loans
- Credit union business loans
- Online business lenders
- Fintech financing platforms
- Private investor funding
These lenders may still approve non-citizens, though most will require:
- Proof of U.S. residency
- Strong credit history
- Business cash flow or collateral
Action Steps for Green Card Holders (2026 and Beyond)
- Stop SBA applications after February 2026 – they will be automatically rejected
- Target private lenders that accept lawful permanent residents
- Build strong credit & financial records
- Consult immigrant-friendly financial institutions
- Explore diaspora investment networks
Why This Matters to the Diaspora
For years, SBA loans were a vital pathway for immigrants to build businesses, create jobs, and contribute to the U.S. economy. This policy change now places new barriers in front of lawful residents who are already deeply integrated into American society.
For many diaspora communities, this marks a major shift in economic access and business mobility.
DiasporaMessenger.com will continue tracking this story and sharing financing alternatives for immigrant entrepreneurs.
