Source: United States House of Representatives – Representative Judy Chu (CA2-27)
WASHINGTON, D.C. – Rep. Judy Chu (CA-28) released the following statement after the Small Business Administration (SBA) announced that, effective March 1, green card holders would no longer be eligible to apply for its primary small business loan programs.
“This decision unfairly targets immigrant communities and will harm not only immigrant small business owners, but the American economy as a whole.
“In the San Gabriel Valley and across the country, immigrant entrepreneurs fuel our local economies. They work hard, pay taxes, and employ millions of people across the nation – including countless American citizens. But under the Trump administration’s new rule, even if 1% of a business is owned by a non-citizen, it would be ineligible for an SBA 7(a) or 504 loan.
“For so many, access to capital is what makes it possible to start a business, keep the doors open, and keep workers employed. And programs like 504, 7(a), and the Community Advantage program, which I’ve long championed because it specifically supports loans and technical assistance to the most underserved small businesses, ensure that underinvested communities are not left behind by traditional banks. And crucially, these loans are not a handout because the programs operate with zero subsidy, meaning they do not cost the taxpayer a dime.
“This is not just bad policy. It reflects a broader pattern of singling out immigrant communities for punishment at the expense of citizens and noncitizens alike. It is xenophobic, economically reckless, and a betrayal of the very promise of opportunity that defines the American Dream. And, it will cause businesses to close their doors and more people to lose their jobs.”
This change further tightens SBA’s December 19th guidance, which made businesses with more than 5% ownership by a foreign national, green card holder, or U.S. citizen living abroad ineligible for these loan programs. That guidance also eliminated all eligibility for businesses with any ownership by Chinese nationals, which include many Chinese American immigrants who have lived in the United States for decades.
The Facts:
- Immigrants start new enterprises at twice the rate of U.S.-born residents. Immigrant-owned businesses are also more likely than others to create jobs and hire employees.
- Nationwide, more than 3 million Asian American, Native Hawaiian, and Pacific Islander owned businesses employ 5.2 million people and generate nearly $1 trillion in annual sales. Additionally, over 5 million Hispanic-owned businesses contribute $800 billion to the U.S. economy each year.
- California is home to the most immigrant-owned businesses, with 829,369 immigrant entrepreneurs.
- In the San Gabriel Valley, Asian Americans own nearly 82,000 businesses, playing a critical role in the region’s economy. Together, Asian American–owned businesses in the region, issue over $2.7 billion in annual payroll.
- In FY 2024, the SBA supported 8,900 loans to Asian-owned businesses totaling $7.2 billion, representing a 70 percent increase in the number of Asian-owned firms funded since fiscal year 2020