Overview
- An internal memorandum limits eligibility to companies that are 100% U.S.-owned with all owners residing in the United States.
- The policy excludes permanent residents from qualifying, rolling back December’s 5% foreign-ownership allowance and surpassing the older 51% U.S.-ownership standard.
- The restriction targets the flagship 7(a) program, which can provide up to $5 million for working capital, expansion, or recovery.
- Sen. Edward J. Markey and Rep. Nydia Velázquez criticized the move and said a December letter about declining lending has not received a response.
- Markey cited lenders’ September warnings over citizenship verification hurdles, and business groups say thousands of immigrant-led firms will lose access to federal financing.