Effective March 1, 2026, the Small Business Administration (SBA) will no longer guarantee loans for businesses owned by lawful permanent residents (green card holders) or any non-citizen ownership.
Key points to know:
- SBA-backed loans are not direct loans, but lender-issued financing with more favorable rates and terms
- This change rescinds prior flexibility, including the allowance for limited non-citizen ownership
- Eligibility now requires 100% U.S. citizen or U.S. national ownership
- Small business advocacy groups warn of reduced business formation and job growth
Why this matters to building owners & business owners:
- Tenant expansion plans may stall or shift
- Capital availability for buildouts, acquisitions, and relocations may tighten
- Leasing velocity, credit profiles, and deal timing could be affected
- Market demand may change—especially in immigrant-founded business corridors
Bottom line: Financing rules are changing. Real estate strategy needs to adjust accordingly.
Worth sharing with owners, operators, lenders, and advisors navigating 2026 planning.
https://apnews.com/article/green-card-small-business-2e82cf5fad56ceff18f01e74ca2d000c
