New SBA Policy Banning Green Card Holders Threatens the Latino Economic Engine
Washington, D.C. — This week, the U.S. Small Business Administration (SBA) doubled down on its anti-immigrant agenda by issuing a new policy notice that officially bans foreign nationals and non-citizens—including Lawful Permanent Residents (Green Card holders)—from accessing all SBA-guaranteed loans. This latest move expands a previous ban to include the agency’s Microloan and Surety Bond Programs, effectively ensuring that any business with even partial immigrant ownership is ineligible for federal support.
In response, Voto Latino issued the following statement:
“By barring Green Card holders from even the smallest microloans, the Trump administration is intentionally widening the racial wealth gap. At a time when small businesses are already being crushed by inflation, oil prices, and new trade pressures and tariffs, the SBA should be reducing barriers, not weaponizing federal programs to fulfill a hateful political agenda.
This latest move by the SBA is a senseless attack on the very people who power our country’s economy. By their own admission, the SBA is cutting off thousands of Lawful Permanent Residents—people who live, work, and pay taxes in our communities—from the capital they need to grow. While most Latinos in the U.S. are citizens, 59% of Latino immigrants in the U.S. are lawful immigrants, which includes legal permanent residents. The fastest-growing business segment in America is Latino-owned—generating $4.1 trillion in goods and services. Latino entrepreneurs and businesses are helping to drive the American economy’s growth and job creation at record levels, yet this administration is choosing to build financial walls instead of providing a lifeline.”
Here are the facts:
- Nearly half of all Fortune 500 companies in 2025 were founded by immigrants or their children.
- Latino-owned businesses are a vital force in the U.S., contributing $800 billion annually, employing 3 million people, and fueling a payroll of over $124 billion.
- Latinos are starting businesses at three times the rate of the general population and creating 1 in 4 new businesses in the United States. Furthermore, these are the innovators who build America, yet the SBA is now slamming the door on the next generation of job creators.
The reality is that the Latino community already faces an uphill battle. A staggering 70% of Latino-owned businesses are forced to rely on personal savings for initial funding because the traditional banking system has failed them. The odds of loan approval from national banks are 60% lower for Latino-owned businesses compared to white-owned firms.
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Voto Latino is a civic advocacy organization dedicated to educating and empowering the next generation of Latino voters while working to build a more inclusive and representative democracy. Since its founding, Voto Latino has registered over two million voters. In 2024, the organization took legal action to protect voting rights, filing multiple lawsuits in Texas, Arizona, and North Carolina to safeguard access to the ballot ahead of the elections.