"The SBA limited access to its loans to U.S. citizens and nationals only starting in March, and expanded that policy to SBA-backed loans beginning in April. Any business that's even partly owned by a permanent legal resident with a green card is no longer eligible for the loans."
"SBA loans have been important to immigrant entrepreneurs because they typically are low-interest and available to those without an established credit history. The agency has also backed loans by private funders, providing a government guarantee for people banks may deem riskier."
"Small business owners are responsible for 99% of net new jobs in the state, according to the California Office of the Small Business Advocate. Immigrant entrepreneurs make up 40% of the state's business community and generated $28.4 billion in income in 2023."
"Small Business Majority, a national business advocacy group, wrote to the SBA in mid-March, urging the federal agency to reconsider the changes. The letter called the new policies 'a misguided approach that ignores critical economic data underscoring the job creating power of the immigrant community.'"
The Small Business Administration has restricted loan eligibility to U.S. citizens and nationals, excluding green-card holders. This change affects immigrant entrepreneurs, particularly in California, where they represent a significant portion of small businesses. SBA loans have been crucial for these individuals due to their low-interest rates and accessibility for those without established credit. The new policy may hinder job creation, as small business owners are responsible for 99% of net new jobs in the state, and immigrant entrepreneurs contribute significantly to the economy.
Read at ABC7 San Francisco
Unable to calculate read time
Collection
[
|
...
]