Small Business Administration

Effective March 1 of this year, the Small Business Administration (“SBA”) implemented a significant change to its loan eligibility requirements, barring green card holders and other non-U.S. citizens from applying for or receiving SBA loans. The new rule applies immediately to the SBA 7(a) and 504 loan programs. Beginning April 1, 2026, the policy will be extended to the Surety Bond and Microloan programs. Under recent, prior SBA guidance, a small business could still remain eligible for SBA financing if up to 5% of its ownership was held by a foreign national or lawful permanent resident. That policy has now […]

Overview of the 8(a) Program and Background The SBA’s 8(a) Business Development Program (the “Program”) supports small businesses owned by socially and economically disadvantaged individuals and certain entities (e.g., Alaska Native Corporations, American Indian Tribes, and Native Hawaiian Organizations).  Eligible firms gain access to set-aside federal contracting opportunities, plus tailored counseling, training, and technical support. In recent years, the Program has come under much scrutiny.  Beginning in 2023 in response to a challenge in federal court, the SBA ended its practice of providing a “presumption” of social disadvantage to certain identified ethnic groups and has since required all current and […]