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Congress·Passed House·9 months ago

House Passes Bill to Block SBA Loans for Refugees, Asylees, and DACA Recipients

Also known as: American Entrepreneurs First Act of 2025

Legislative Progress

✓ Filed
✓ Review
✓ House

217–190

Senate
President

Impact Analysis

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Key Points

  • This bill requires anyone applying for a Small Business Administration (SBA) loan to provide proof of their citizenship or legal permanent residency. This includes the popular 7(a) loans and real estate loans used by thousands of small businesses across the country.
  • Under these new rules, business owners must be 100 percent owned by U.S. citizens, nationals, or green card holders. If a business has even one owner who does not meet these criteria, the entire company would be ineligible for federal small business loans.
  • The policy specifically bans several groups from getting these loans, including refugees, people seeking asylum, and those with DACA status. Even people with valid work visas would no longer be able to use these federal programs to start or grow their businesses.
  • Supporters of the bill want to ensure that federal tax dollars and financial support are reserved strictly for American citizens and permanent residents. They argue this helps prioritize local entrepreneurs over foreign nationals.
  • Critics may argue that this could hurt the economy by cutting off funding for hardworking entrepreneurs who are legally in the U.S. but haven't yet become permanent residents. This could lead to fewer new businesses and jobs in communities that rely on immigrant-owned shops and services.
Economy FinanceImmigration

Milestones

4 milestones15 actions
Jun 9, 2025Senate

Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.

Jun 6, 2025House

Motion to reconsider laid on the table Agreed to without objection.

Jun 6, 2025House

On passage Passed by the Yeas and Nays: 217 - 190 (Roll no. 156). (text: CR H2510-2511)

Jun 6, 2025

Passed/agreed to in House: On passage Passed by the Yeas and Nays: 217 - 190 (Roll no. 156).

Jun 6, 2025House

The previous question was ordered pursuant to the rule.

What Happens Next

Projected impacts based on AI analysis

2025

Senate committee reviews the bill

The bill has been referred to the Senate Committee on Small Business and Entrepreneurship. It must pass the Senate and be signed into law before any changes take effect. The outcome is uncertain.

Vote Results

1 vote
HousePassedPassageJun 6, 2025

On Passage

217
190
Democrat
8 – 190 · 14
Republican
209 – 0 · 11
View full roll call

Related News

2 articles
National Review·9 months ago

House Passes Bill Barring Non-Citizens from Receiving Small-Business Loans

House Republicans voted to codify Trump administration guidelines preventing noncitizens from accessing SBA loans. SBA Administrator Kelly Loeffler praised the 'common-sense guardrails' intended to ensure taxpayer-backed funds are reserved for American citizens and legal residents.

R+
Bloomberg Law·9 months ago

BGOV Bill Analysis: H.R. 2966, Immigration Status for SBA Loans

Detailed analysis of H.R. 2966 reveals that individuals without U.S. citizenship or lawful permanent residency would be ineligible for SBA 7(a) and 504 loans. The bill mandates 100% ownership by citizens or green card holders and specifically excludes asylees, refugees, and DACA recipients.

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Source Information

Document Type

Congressional Bill

Official Title

American Entrepreneurs First Act of 2025

Bill NumberHR 2966
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReceived in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.

Sponsor

Cosponsors

(1)
R: 1

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.