The new head of the U.S. Small Business Administration (SBA) announced Thursday that the agency is beginning a series of reforms that were aimed at putting American citizens first and ending taxpayer benefits to “illegal aliens.”
Kelly Loeffler, who was appointed SBA administrator in February by President Donald Trump, announced that in the coming days, the agency will create a new policy requiring SBA loan applications to include a citizenship verification provision to ensure only legal, eligible applicants can access SBA programs. Lenders will be required to confirm that applicant businesses are not owned in whole or in part by an undocumented immigrant.
Loeffler, a longtime supporter of Trump, has also ordered the relocation of regional offices located in Atlanta, Boston, Chicago, Denver, New York City and Seattle, which are described as sanctuary cities. She said the cities do not comply with U.S. Immigration and Customs Enforcement. The offices will be moved to “less costly, more accessible locations that better serve the small business community and comply with federal immigration laws.”
According to Loeffler’s press release, the Biden administration allowed undocumented immigrants to both apply for and receive approval for an SBA loan. She highlighted a loan application approved by the agency in June of last year for $783,000. She maintained that the business was 49% owned by an undocumented immigrant, and that an internal SBA audit under the Trump administration identified the loan and halted any disbursements. However, she gave no other information about the incident. In fiscal year 2024, the SBA provided $37.8 billion in 7(a) and 504 funding.