SBA STOPS Giving Loans to Illegal Aliens, Will Relocate Offices Out of Sanctuary Cities

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Newly-confirmed head of the Small Business Administration Kelly Loeffler just announced two big changes for the agency.

Firstly, she has signed a new policy that prevents illegal aliens from receiving taxpayer-funded loans.

The policy mandates that all SBA lenders require loan applicants to provide proof of citizenship.

American business owners first!

Take a look:

In addition, Loeffler announced that the SBA will be moving all of its regional offices out of sanctuary cities.

Here’s what she had to say on Fox News:

The Business Journal has more details:

The U.S. Small Business Administration (SBA) announced Thursday new measures to ensure its lending programs are only available to applicants who pass a citizenship verification.

Kelly Loeffler, sworn in as SBA administrator on Feb. 20, also announced that six SBA regional offices would be relocated from so-called sanctuary cities.

In the coming months, the offices in Atlanta, Boston, Chicago, Denver, New York City and Seattle will relocate to “less costly, more accessible locations that better serve the small business community and comply with federal immigration law,” said Loeffler, a former fintech executive and U.S. Senate appointee.

Loeffler added that the SBA in the coming days will circulate a new policy requiring SBA loan applications to include a citizenship verification provision to ensure only legal, eligible applicants can access programs. Lenders will be required to confirm that applicant businesses are not owned “in whole or in part by an illegal alien,” consistent with President Trump’s executive orders, according to an SBA news release.

Loeffler’s new policy comes after the agency halted a loan totaling nearly $800K to a business half-owned by an illegal alien.

Per The Magnolia Tribune:

SBA says it will promulgate a new policy in the coming days that requires SBA loan applications include a citizenship verification provision. Lenders will be required to confirm that applicant businesses are not owned in whole or in part by an illegal alien.

The agency pointed to a June 2024 approval of a $783,000 loan application for a small business that was 49% owned by an illegal alien as an example.

“Last month, under the leadership of this Administration, an internal SBA audit identified the illegal status of the individual and halted the loan from being disbursed – ensuring that $0 was distributed to the business,” the statement read.

In addition, regional offices in Atlanta, Boston, Chicago, Denver, New York City, and Seattle will be relocated as they are “currently in municipalities that do not comply with U.S. Immigration and Customs Enforcement.”

SBA says the six offices will be moved to less costly, more accessible locations “that better serve the small business community and comply with federal immigration law.”



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