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- The agency says lenders will be required to confirm that applicant businesses are not owned in whole or in part by an illegal alien.
Newly confirmed U.S. Small Business Administration Administrator Kelly Loeffler announced Thursday that the agency would be ending taxpayer benefits for illegal aliens and moving SBA offices out of sanctuary cities. The moves, the agency said in a statement, were to support President Donald Trump’s agenda to secure the nation’s borders.
Loeffler, a former businesswoman and Georgia U.S. Senator, said over the last four years, the record invasion of illegal aliens “has jeopardized both the lives of American citizens and the livelihoods of American small business owners.”
“Under President Trump, the SBA is committed to putting American citizens first again – starting by ensuring that zero taxpayer dollars go to fund illegal aliens,” she said, adding, “We will return our focus to empowering legal, eligible business owners across the United States – in partnership with the municipalities who share this Administration’s commitment to secure borders and safe communities.”
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.”
