President Donald Trump’s Small Business Administration is closing yet another loophole that never should have existed in the first place. The SBA will stop issuing small business loans to foreign nationals and will now require that any business receiving these loans be 100 percent owned by a U.S. citizen or U.S. national. Shocking concept, right—American taxpayer money for American-owned businesses.
According to a newly published memo, starting March 1, 2026, applicants for the SBA’s primary small business loan programs must be American citizens or American nationals. The guidance officially revises the agency’s rules on businesses owned by non-U.S. citizens, putting an end to a system that was clearly being abused.
This move comes after the SBA suspended nearly 7,000 pandemic-era loans in Minnesota due to “suspected fraud activity.” Administrator Kelly Loeffler revealed that these borrowers were approved for about 7,900 PPP and EIDL loans totaling roughly $400 million. Yes, million—with an “M.” Those individuals will now be banned from all SBA loan programs, including disaster loans, and their cases will be referred to federal law enforcement for prosecution and repayment. Apparently, stealing from taxpayers is no longer a career path the government wants to subsidize.
Loeffler made it clear this is just the beginning, saying Americans will finally see criminals who took advantage of the system held accountable. And she wasn’t kidding. Just last week, the SBA also suspended more than 1,000 businesses from its 8(a) Business Development Program after owners failed to submit required financial documents. Turns out paperwork matters when you’re handling public money—who knew?
This policy change sends a simple message: SBA loans are for American-owned businesses, not for fraudsters or foreign nationals gaming the system. Under President Trump, common sense is making a comeback, and small businesses that actually belong to Americans can finally compete on a fair playing field. That’s good for workers, good for taxpayers, and great for the future of the country.
