Pakistani-American businessman Dilawar Syed, who previously served in the Small Business Administration, reacted to the new rule that bars Green Card holders from availing small business loans, and said it is nothing but bad policy. "As a former SBA leader, I’ve seen immigrant entrepreneurs power job creation. Blocking millions of legal permanent residents from SBA loans isn’t pro-growth— it’s bad policy that hurts Main Street," Syed said.
The SBA issued a new policy guideline withdrawing a narrow exception that allowed small businesses seeking a loan from the agency to have partial ownership by non-citizens or nationals. About 5% of ownership was allowed before but now Green Card holders won't be eligible to own any percentage of a business seeking an SBA loan. The new rule will be applicable from March 1. Green Card holders will either have to get their loan number before March 1 or forget about SBA loans if they are partners in any business in the US.
