Beginning on March 1, 2026, a new federal rule will go into effect, altering the requirements for accessing loans guaranteed by the Small Business Administration (SBA). This new regulation mandates that 100% of the direct or indirect owners of a small business must be citizens or nationals of the United States. This significant modification in the SBA's eligibility requirements is set to impact many small businesses, particularly those that have been owned or operated by permanent residents.

The core of the new rule revolves around the citizenship criteria for small business ownership. By stipulating that all owners must be U.S. citizens or nationals, the regulation effectively excludes permanent residents from being able to participate in SBA-backed loan programs, which can provide much-needed financial resources for business development. The regulation has sparked concerns among stakeholders who argue that it may disproportionately affect small businesses owned by immigrants who contribute to the economy but do not possess full citizenship.

This change in federal policy comes amid broader discussions about immigration and economic support for small businesses in the U.S. Critics are worried that this approach could hinder the entrepreneurial spirit among permanent residents and could impact job creation, as many immigrant-owned businesses are known for their innovative contributions to the marketplace. As the new rule approaches its implementation date, various organizations are likely to advocate for revisions to accommodate a more inclusive approach for permanent residents within SBA loan programs.