“Implementation of ‘America First’ Policy: Applicants for SBA Guaranteed Loans Must Have Citizenship”

The Small Business Administration (SBA) announced that as of March 7th, applicants for guaranteed loans must be U.S. citizens instead of green card holders. The agency will also crack down on pandemic-related loan fraud and advise those who provided false information during the application process to repay the funds promptly, or face legal consequences.

SBA Director Kelly Loeffler, confirmed by the Senate on February 24th, wasted no time in issuing 15 memorandums on her first day in office, indicating a full implementation of the new government’s “America First” policy.

One memorandum clearly states the prohibition of illegal immigrants from receiving SBA assistance, emphasizing that programs funded by U.S. citizens should exclusively benefit U.S. citizens. In accordance with the executive order signed by former President Trump, SBA will prevent unauthorized immigrants from accessing any SBA assistance subsidized by taxpayers to ensure the priority rights of American citizens.

In response to this, Guo Manli, SBA’s New York Regional Economic Development Commissioner and International Trade Official, stated that starting from March 7th this year, SBA’s guaranteed loan programs 7(a) and 504 require applicants to be U.S. citizens. Previously eligible for loans, green card holders are now only eligible for such loans if they are citizens. More details can be found on sba.gov/partners/lenders.

Furthermore, since SBA does not directly lend to applicants but through banks or other credit institutions, these loan institutions are required to rigorously verify the citizenship status of applicants in accordance with SBA requirements.

Another significant measure announced in Director Loeffler’s memorandum is the “elimination of wasteful spending and a crackdown on fraudulent activities,” which will involve investigating fraudulent activities in all programs, including those left by the previous government during the pandemic, estimated at up to $200 billion.

“Starting today, SBA will adopt a zero-tolerance policy,” SBA has established an anti-fraud task force and will appoint a “fraud prevention commissioner” to identify, stop, and recover illegally obtained funds to safeguard the interests of American taxpayers and collaborate with other government agencies to prevent fraudulent activities.

Guo Manli mentioned that some individuals who applied for PPP loans during the pandemic have personally contacted SBA offices to repay the loans obtained through dishonest applications, suspecting that an investigation is ongoing.

“Some Chinese individuals have not proactively requested to repay the loans, presumably reluctant to do so,” she said. “If you have engaged in fraudulent activities or if there were inaccuracies in the data submitted during the initial application, it is advised to repay the funds promptly. In case of detection, besides facing civil liabilities, there might be criminal consequences. It’s better to return the funds promptly if possible.” ◇