Should small business loans be restricted to U.S. citizens and lawful permanent residents?
H.R. 2966 amends application requirements for Small Business Administration (SBA) loans, requiring proof of citizenship or permanent residence in the United States. It excludes non-citizens, such as U.S. visa holders, asylees, and refugees, from applying for the Small Business Administration’s 7(a) and 504 loan programs. Sponsor: Rep. Beth Van Duyne (Republican, Texas, District 24)
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Opponents say
At the time of research and publication, no official opposing statements have been identified. This does not mean that nobody opposes the bill, nor does it mean that opposing statements will not be made in the future.
Proponents say
• "With over $25 billion in SBA loans approved last year, it’s unacceptable that there’s no legal mandate ensuring those funds go to people who are here legally. American tax dollars should support American businesses—not businesses owned by those here illegally." Source: Rep. Michael Cloud (Republican, Texas, District 27)
• "The American Entrepreneurs First Act is a common-sense measure to protect precious Small Business Administration funds by ensuring they are directed to American citizens and not accessible by individuals or businesses with foreign or undocumented ownership…I share President Trump and SBA Administrator Loeffler’s commitment to establish this much needed verification process so only qualified individuals can benefit from SBA programs, loans, and services. Following years of pandemic era fraud and theft of public funds because of lax verification procedures, this measure serves as an ongoing effort to reform security and access to federally funded programs." Source: Rep. Beth Van Duyne (Republican, Texas, District 24)
• "The American Entrepreneurs First Act puts America’s small business owners first by ensuring only U.S. Citizens can receive SBA loans, SBA loan programs are backed by U.S. tax dollars and should be available to U.S. citizens. Unfortunately, the Trump Administration has found various instances where these loans have been blatantly abused by foreign nationals. I thank my colleagues, Representatives Van Duyne and Cloud, for highlighting this issue and permanently fortifying the SBA against this kind of abuse. It’s time to put American entrepreneurs first again." Source: Roger Williams, Chairman of the House Committee on Small Business (Republican, Texas, District 25)