‘End of the American Dream’... U.S. SBA to Limit Loans to Citizens Only

[Financial News] The U.S. Small Business Administration (SBA) has decided to halt support under its key loan program for non-citizens, including green card holders. The Donald Trump administration’s hard-line anti-immigration stance now appears to be fully extending into policies that support the real economy.
CBS Broadcasting Inc. (CBS) reported on the 3rd (local time) that "starting on the 1st of next month, the SBA will limit eligibility for its 7(a) loan program to U.S. citizens and to 'nationals,' such as those from American Samoa." In its policy notice issued the same day, the SBA explicitly stated, "One hundred percent of the owners of any small business applying for an SBA loan must be U.S. citizens or nationals with a residence in U.S. territories."
The 7(a) loan program is the SBA’s flagship financial support scheme. Under this program, the government guarantees loans that financial institutions extend to small businesses. Through it, small businesses can borrow up to $5 million (about 7.25 billion won) for working capital, debt refinancing, equipment purchases, and buying or improving real estate.
SBA spokesperson Maggie Clemons stated, "The Trump administration’s SBA is dedicated to economic growth and job creation for American citizens," adding, "We will ensure that every tax dollar entrusted to our agency is used solely to support American job creators and innovators."
Given this policy shift, Korean green card holders and other non-citizens running small businesses in the United States are expected to find it increasingly difficult to receive support from the SBA.
Immigrant advocacy groups and opposition politicians responded with immediate criticism.
A representative of CAMEO, a small-business support network, noted, "Immigrants start businesses at twice the rate of U.S.-born residents," and argued, "Blocking lawful permanent residents from accessing loans is harmful to the economy."
Democratic members of the U.S. Senate Committee on Small Business, Senator Edward Markey of Massachusetts and Representative Nydia Velázquez of New York, pointed out, "Instead of helping hardworking immigrants start and expand their businesses, you are blocking green card holders from obtaining loans and stripping them of the opportunity to pursue the American Dream."
whywani@fnnews.com Hong Chae-wan Reporter