{"id":337685,"date":"2026-06-15T23:49:11","date_gmt":"2026-06-15T23:49:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-tx\/337685\/"},"modified":"2026-06-15T23:49:11","modified_gmt":"2026-06-15T23:49:11","slug":"sbas-new-loan-rules-shut-out-green-card-holders","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-tx\/337685\/","title":{"rendered":"SBA’s new loan rules shut out green card holders"},"content":{"rendered":"

TEXAS \u2014 The Small Business Administration (SBA)<\/a> is only allowing 100% U.S. citizen-owned businesses apply for any of their loan programs.<\/p>\n

The move from the SBA follows one of President Donald Trump\u2019s first executive orders when he was inaugurated last year. One of his Jan. 20 orders, \u201cProtecting the American People Against Invasion<\/a>,\u201d called for the \u201cdenial of public benefits to illegal aliens,\u201d according to the order.<\/p>\n

One business in Austin found out about the policy change when going through a separate hurdle.<\/p>\n

\u201cWe got our notice in March that our building is being taken for eminent domain for the light rail project<\/a>,\u201d said Debra Hallum, the owner of 1972 Pub<\/a>. \u201cWhile there is a relocation plan to move us and help with that, there are going to be some additional costs.\u201d<\/p>\n

Hallum originally looked to the SBA as a potential source of funding last year to help with opening the bar. She decided to wait a year to establish a financial history to show vendors when and if she needed.<\/p>\n

\u201cWe decided we were going to look at SBA again, and we started talking to the same team we had been talking to before,\u201d Hallum said, referring to the 7(a) loan program offered by the SBA. \u201cHe came back to us and said that in March, our current government changed it so that small business ownership had to be 100% citizen, and we are half immigrant owned, and we no longer qualify for SBA funding.\u201d<\/p>\n

Hallum\u2019s business partner and wife, Marcene Du Plessis, is a permanent resident green card holder. Hallum referred to the SBA policy update published in February this year, which states, \u201cSBA is requiring that 100% of all direct and\/or indirect owners of a small business applicant be U.S. Citizens or U.S. Nationals who have their Principal Residence in the United States, its territories, or possessions.\u201d<\/p>\n

The rule came into effect March 1.<\/p>\n

However, this isn\u2019t the only change the SBA has made when it comes to citizenship and eligibility.<\/p>\n

In the first months of President Trump\u2019s second term, green card holders like Hallum\u2019s partner could apply for an SBA loan. An update to the 7(a) loan operating procedures, effective June 1, 2025, states that eligibility was restricted to U.S. citizens and nationals and permanent lawful residents (green card holders).<\/p>\n

After that, however, a Dec. 19, 2025, update stated that ownership by non-citizens or nationals such as green card holders had to be capped at 5% in order to qualify for an SBA loan.<\/p>\n

Hallum made it clear she did not want to change the ownership structure of her business.<\/p>\n

\u201cOne of the questions is change the LLC, and my first reaction to that is I shouldn\u2019t have to,\u201d she said.<\/p>\n

Now, with the newest update this past March of businesses needing to be 100% citizen-owned, they no longer qualify for any government-backed funding.<\/p>\n

\u201cShe\u2019s been here and paid taxes for 20 years. She\u2019s followed the law for 20 years,\u201d Hallum said about her partner.<\/p>\n

Despite Du Plessis\u2019s history living and working in the United States, Trump and SBA administrator Kelly Loeffler are set on keeping funding within the country to advance the administration\u2019s \u201cAmerican First\u201d priorities.<\/p>\n

\u201cMy administration is committed to ensuring that American small businesses have access to the credit and capital they need,\u201d said Trump at a Small Business Summit<\/a> last month. \u201cLast year, Kelly, our small business administration issued $7 billion in loans to 11,000 new startups, as well as $1.3 billion to 3,000 veteran-owned small businesses\u201d<\/p>\n

Kelly Loeffler, when speaking with NewsNation<\/a> last month, also added the point of rooting out fraud.<\/p>\n

\u201cYou now have to have a birthdate. You have to have a citizenship check. That has never existed in the 72 year history of the SBA,\u201d said Loeffler.<\/p>\n

Spectrum News reached out to every SBA district office in Texas for an interview to discuss the changes.<\/p>\n

SBA spokesperson Maggie Clemmons provided a statement that says in part, \u201cThe Trump SBA is committed to driving economic growth and job creation for American citizens\u2026 Across every program, the SBA is ensuring that every taxpayer dollar entrusted to this agency goes to support U.S. job creators and innovators.\u201d<\/p>\n

\u201cTo that end,\u201d she continued, \u201cwe expect to be able to offer them even more capital in the near future pending legislation<\/a> to increase SBA loan limits for small businesses that are hiring, building, and producing in America.\u201d<\/p>\n

Navigating the eligibility changes from the SBA is another hurdle that some small businesses, like Hallum\u2019s, have had to overcome.<\/p>\n

Carlos Soto, from the City of Austin\u2019s Office of Economic Development, says businesses in Austin and across the state are facing a lot.<\/p>\n

\u201cPeople are trying to figure out what to do given the economic landscape, given the policy changes that are coming from federal all the way to local,\u201d Soto said.<\/p>\n

\u201cA lot of lessons learned,\u201d Hallum said.<\/p>\n

With no government loan options available, Hallum and Du Plessis are looking at other options for funding. They were recently awarded a grant from the National LGBTQ+ & Allied Chamber of Commerce, but it\u2019s only a small step toward their $50,000 goal.<\/p>\n

\u201cIt\u2019s not enough,\u201d she said.<\/p>\n

Hallum is also calling on their patrons and community members to donate to their fund for relocation expenses. Hallum, while hopeful, says this is an issue she and her partner should not be dealing with at all.<\/p>\n

\u201cNot allowing immigrants to live a life here, including if they want to open a small business,\u201d she said, \u201cI just think it\u2019s not what America is about.\u201d<\/p>\n