SBA Should Not Block Green Card Holders From Accessing Microloans, Surety Bonds

“The U.S. Small Business Administration’s (SBA) guidance that seeks to prohibit non-citizens, including green card holders, from accessing SBA-backed loans through the Surety Bond and Microloan Programs is yet another blow to lawful permanent residents seeking to pursue their entrepreneurial dreams in the United States. Given that immigrants are twice as likely to start a business as U.S.-born citizens, SBA’s lending restrictions will have a negative impact on small business creation throughout this country for years to come. What’s more, the timing of SBA’s tighter lending eligibility criteria could not be worse as small businesses have struggled for many years to access critical capital. In fact, Small Business Majority’s research found that among entrepreneurs who pursued funding for their business, just 36% secured a loan of any size with most receiving $50,000 or less. Nearly one-quarter (24%) reported that the funding they received was insufficient to meet their needs.

Just like its previous actions to prohibit green card holders from accessing SBA-backed financing through the 7(a) and 504 programs, there is no evidence that this latest guidance will catalyze small business growth in the United States. Instead of making it harder for lawful permanent residents to start businesses and create jobs, policymakers should be looking for ways to encourage growth on Main Street.”