Bill Mandates Citizenship Proof for SBA Loans, Excludes Asylees, Refugees, DACA Recipients

This proposed legislation, the "American Entrepreneurs First Act," introduces new requirements for certain Small Business Administration (SBA) loans. Specifically, it targets loans under section 7(a) of the Small Business Act and Title V of the Small Business Investment Act. Applicants would need to provide their date of birth, certify their U.S. citizenship, U.S. national status, or lawful permanent residency, and confirm no owners are 'ineligible.' Lawful permanent residents would also need to supply their alien registration number. The core purpose is to restrict these specific SBA loan programs primarily to U.S. citizens, nationals, and green card holders.

The New Application Checklist

Getting one of these SBA loans would involve more paperwork under this bill. Every individual applicant, business owner, or loan guarantor needs to verify their status. Section 2 explicitly requires the date of birth for individuals and certifications confirming they are a U.S. citizen, national, or lawful permanent resident (LPR). For LPRs, their alien registration number becomes a required piece of the application puzzle. Furthermore, applicants must certify that no owner, direct or indirect, falls into the newly defined 'ineligible person' category.

Defining Who's Excluded

The bill clearly defines who cannot receive these loans by labeling them "ineligible persons." This list, outlined in Section 2, includes asylees, refugees, individuals legally present on various visas (like nonimmigrant work or student visas), DACA recipients (those under the Deferred Action for Childhood Arrivals policy), and any person present without lawful immigration status. Critically, if any owner of a business applying for these loans falls into one of these categories, the entire application is barred. This means a small business co-owned by a U.S. citizen and a DACA recipient, for example, would be ineligible for these specific SBA loans.

Real-World Impact on Entrepreneurs

Practically speaking, this bill closes a potential funding door for many entrepreneurs legally living and working in the U.S. An asylee who fled persecution and wants to start a local bakery, or a refugee building a tech consultancy, would be blocked from accessing these specific SBA loan programs. Similarly, entrepreneurs here on valid work visas or those protected under DACA, who may have built businesses and employed others, would find this avenue for capital cut off. The requirement targets not just the individual applicant but the entire ownership structure, potentially impacting partnerships and established small businesses with diverse ownership teams.