US Small Business Loans Now Only for American Citizens

 

 

 

PP Cherian

Washington, DC: The US administration has announced a new policy prohibiting the provision of federal government small business loans to non-US citizens and foreigners. This strict measure is part of giving priority to the country's entrepreneurs.

From now on, those applying for loans must be US citizens or US nationals permanently residing in the United States.

Those with legal permanent residency will no longer be eligible for loans. They will not be allowed to have a stake in the business ownership. This restriction has been extended to the SBA's main loan programs such as 7(a) and 504, as well as microloan and surety bond programs.

100 percent ownership of the business entity must be held by American citizens. The old law that allowed foreigners to own up to 5 percent of the shares has been repealed.

More stringent measures will be taken in verifying the documents of applicants to ensure citizenship.

Reason:
SBA Administrator Kelly Loeffler said the goal is to ensure that limited government funds are available to citizens in their own countries, amid a record number of people applying for loans.