US passes bill that restricts non-citizens from getting small biz loans

In a big blow to immigrants, the US House of Representatives has passed new legislation that would prevent non-US citizens from receiving Small Business Administration (SBA) loans.

The bill was passed with eight Democrats joining Republicans to vote in favour. It is now reportedly headed to the Senate.

“Today, US Representative Beth Van Duyne (TX-24), a member of the House Committee on Small Business, celebrated the House passage of her legislation, H.R. 2966 - American Entrepreneurs First Act of 2025. This bill ensures that Small Business Administration (SBA) funds are only accessible to American citizens, not to individuals or businesses with foreign or undocumented ownership,” read a press release of Republican Texas representative Beth Van Duyne.

“By passing my American Entrepreneurs First Act, House Republicans have, once again, come together to support common sense reforms protecting America’s hard-earned tax dollars from being lost to waste, fraud, abuse, and theft by hostile foreign actors,” said Rep Van Duyne. 

“The American Entrepreneurs First Act ensures Small Business Administration funds are directed to American businesses and not accessible by individuals or businesses with foreign or undocumented ownership and verifies the age of all recipients. I urge our Senate colleagues to quickly pass this important measure, which is supported by President Trump and SBA Administrator Loeffler, as a vital verification step to confirm American tax dollars are being spent to strengthen American small businesses,” she added.

This comes amid a wave of legislation introduced this session by Republican lawmakers seeking to limit the rights and benefits of immigrants, particularly those without legal status. Although some of these measures are still stalled in the House, the GOP’s majority in both chambers makes their eventual passage more likely.