New Delhi, Feb. 3 -- The US Small Business Administration (SBA) has announced a major policy shift that will bar businesses with legal permanent residents (green card holders) from accessing SBA-backed loans, drawing sharp criticism from Democratic lawmakers.

In a policy notice published on February 2, the SBA said the changes will take effect from March 1, 2026.

Under the revised Standard Operating Procedure (SOP) 50 10 8, the SBA will require that 100% of all direct and indirect owners of a small business applicant be US citizens or US nationals who maintain their principal residence in the United States, its territories, or possessions.

The update is aligned with 13 C.F.R. 120.100 and Executive Order 14159, titled "Protecting the Am...