Green Card Alert: New Business Loan Rules Affecting Indian Residents from March 1

The US Small Business Administration (SBA) has announced significant changes that will impact immigrant entrepreneurs, particularly those from India. The new rules are part of a shift in policy aimed at overseeing business ownership for non-US citizens. This update is aligned with the broader immigration reforms under President Trump’s ‘America First’ initiative.

New Business Loan Rules Effective March 1

Starting March 1, 2026, the updated guidance will enforce stricter ownership requirements for small businesses. Under this new policy, all direct and indirect owners of a small business must be US Citizens or US Nationals residing in the US or its territories. This clause replaces the previous regulations that allowed limited foreign ownership.

Impact on Indian Communities

Indian immigrants are expected to be significantly affected by these changes. As the largest source of immigrants to the US, many Indian entrepreneurs may find it challenging to navigate the new ownership rules. According to Kelly Loeffler, the US SBA Administrator, this modification is part of the administration’s ongoing enforcement of strict immigration criteria.

• All owners of small business applicants must be US Citizens or Nationals.
• Legal Permanent Residents (LPRs) are prohibited from owning any percentage of the business.
• The previous allowance for foreign nationals holding up to 5% ownership has been revoked.

Key Statistics

Data reveals that Indian nationals represent a considerable portion of small business owners in the US. In the fiscal year 2024, India was the second-largest country of origin for green card recipients, showing its significant immigrant population. Additionally, approximately 40% of small business owners in the US are foreign-born, highlighting the critical role immigrants play in the economy.

Economic Contributions of Indian-Americans

Businesses owned by Indian Americans contribute substantially to the US economy. Recent reports indicate these enterprises generate over $150 billion in annual revenue and employ more than 800,000 people. Many hotels and restaurants across the nation are owned and operated by Indian entrepreneurs, demonstrating their influence in the hospitality sector.

As the landscape of business ownership changes with these regulations, the challenges for immigrant entrepreneurs are likely to grow. Understanding these rules will be crucial for Indian residents looking to establish or maintain their business operations in the United States.