Kochi: US government-backed small business loans will no
longer be available for Green card holders from March 1, 2026, the Economic Times reported.
This is due to the US Small Business Administration (SBA) tightening its citizenship and residency rules.
The change applies to key SBA loan programmes and affects businesses with any ownership by lawful permanent residents, an official SBA policy notice issued on February 2, 2026 said.
The SBA said the revised rules require 100% of all direct and indirect owners of a small business applicant to be US citizens or US nationals with their principal residence in the United States or its territories. As a result, lawful permanent residents will be barred from owning any stake in a business seeking SBA-backed loans from the effective date.
It also rescinds an earlier procedural notice that allowed limited ownership by foreign nationals or certain residents living outside the US.
The decision means businesses partly or fully owned by green card holders will not qualify for SBA-backed loans.
Existing and prospective borrowers will need to review their ownership structures to remain eligible after March 1.
No B – loans for Green card holders
