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Trump Administration Blocks SBA Loans for Undocumented Immigrants, Relocates Offices From Sanctuary Cities

New SBA policies enforce citizenship verification for loans and shift regional offices to comply with federal immigration law.

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A woman crosses a street in front of City Hall in Los Angeles, California on August 22, 2017. The city of Los Angeles has sued the US Justice Department over threats to cut millions of dollars in federal funding for "sanctuary cities." The lawsuit joins similar legal challenges launched earlier this month by the city of San Francisco and the state of California against the department. (Photo credit should read FREDERIC J. BROWN/AFP via Getty Images)
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Overview

  • The Small Business Administration (SBA) announced new regulations requiring citizenship verification for loan applicants to ensure only legal residents can access its programs.
  • The SBA will relocate six regional offices from sanctuary cities, including Boston, New York City, and Seattle, to areas more aligned with federal immigration policies.
  • The policy changes align with President Trump’s executive order aimed at ending taxpayer-funded benefits for undocumented immigrants.
  • An internal SBA audit previously identified a case where a loan application involving an undocumented individual was approved but later blocked before funds were disbursed.
  • SBA Administrator Kelly Loeffler emphasized the agency's commitment to prioritizing legal small business owners and ensuring compliance with immigration laws.