Bill Introduced Mandating Citizenship Verification for SBA Loans

Texas Reps. Beth Van Duyne (R) and Michael Cloud (R) have introduced the American Entrepreneurs First Act, a bill that ensures only qualified U.S. citizens and lawful permanent residents can access taxpayer-backed Small Business Administration (SBA) loans.

The bill comes on the heels of an Executive Order from President Donald Trump (R) and a directive from SBA Administrator Kelly Loeffler (R) calling for reforms to prioritize American businesses and prevent fraud. The effort is intended to close gaps that lawmakers say have allowed ineligible individuals, including undocumented immigrants and foreign nationals, to access federal funds.

“The American Entrepreneurs First Act is a common-sense measure to protect precious Small Business Administration funds by ensuring they are directed to American citizens,” said Rep. Van Duyne in a statement. “Following years of pandemic-era fraud and theft of public funds due to lax verification procedures, this bill establishes much-needed safeguards to ensure these programs benefit those they were intended to help.”

Rep. Cloud echoed the urgency in his own statement on the bill, expressing that “with over $25 billion in SBA loans approved last year, it’s unacceptable that there’s no legal mandate ensuring those funds go to people who are here legally. American tax dollars should support American businesses—not businesses owned by those here illegally.”

The proposed bill mandates that all SBA loan applicants provide documentation verifying U.S. citizenship, nationality, or lawful permanent residency. Businesses must also be 100% owned by individuals who meet these criteria. Lawful permanent residents must include their alien registration numbers in the application process.

The bill also explicitly defines “ineligible persons” as undocumented individuals, DACA recipients, visa holders, temporary residents, and nonimmigrants under the Immigration and Nationality Act. Applicants must also certify that no direct or indirect owners of the business fall into these categories.

House Small Business Committee Chairman Roger Williams (R) praised the initiative, saying, “It’s time to put American entrepreneurs first again.”