The U.S. House has approved the American Entrepreneurs First Act of 2025, a bill that bans noncitizens—excluding lawful permanent residents—from receiving Small Business Administration (SBA) loans. The measure passed in a 217-190 vote on Friday.
If the Senate passes the bill and it becomes law, the SBA will be permanently barred from issuing taxpayer-funded loans to illegal immigrants, refugees, asylees, visa holders, DACA recipients, and other nonimmigrants. The restriction would also apply to businesses partially or fully owned by such individuals. The bill would codify reforms the SBA recently began implementing, including the requirement to verify every applicant’s citizenship status and age.
Related posts
Rep. Beth Van Duyne, R-Texas, a co-sponsor, called the bill “just common sense.” She emphasized that the legislation does not discriminate by nationality but instead hinges on legal residency or immigration status.
Immigration policy has remained a central theme of President Donald Trump’s second term. In February, he ordered federal agencies to end the distribution of public benefits to individuals living in the U.S. unlawfully.
However, House Minority Whip Katherine Clark, D-Mass., criticized the bill, saying it addresses a non-issue while harming American businesses.
“This is a solution in search of a problem,” Clark said Friday. “Applying onerous, unfunded paperwork requirements at SBA and making it harder for U.S. small businesses to access funding – all while President Trump’s tariffs wreak havoc on them – is hypocrisy at its finest and will result in small businesses across the country closing or never getting off the ground.”
One part of the bill drawing less controversy is the age verification requirement. A Department of Government Efficiency investigation uncovered that from 2020 to 2021, the SBA approved loans worth $333 million for applicants over 115 years old and another $300 million for children under age 11.
SBA Administrator Kelly Loeffler welcomed the bill’s passage, calling it a move toward greater accountability and fiscal responsibility.
“Illegal aliens and fraudsters have no right to taxpayer-backed loans at the SBA,” Loeffler said. “With these common-sense guardrails, the American Entrepreneurs First Act will help put our deserving job creators first.”
