Core Insights - The Small Business Administration (SBA) is implementing a policy that prohibits lending to any business with non-citizen ownership starting March 1, 2025, which will exclude over 5 million business owners from federal loans [2][3][9] Policy Changes - The new policy reduces the previous allowance of 5% foreign ownership to zero, affecting lawful permanent residents who were previously eligible if they owned at least 51% of the business [3][9] - This change aligns with an executive order from President Trump aimed at restricting government funding and services to legal immigrants [6] Economic Impact - The SBA's decision could hinder funding access for many small businesses, potentially damaging the economy according to critics [5][9] - In 2023, non-citizens represented 15.9% of all non-employer businesses in the U.S., indicating a significant impact on the small business landscape [4] Criticism and Response - Critics argue that the policy unfairly targets law-abiding immigrants and businesses with partial immigrant ownership, suggesting it is detrimental to economic growth [7][9] - A group of Democratic lawmakers has expressed concerns that the administration's approach is based on discrimination rather than the financial viability of small businesses [8]