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.

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.