Kelly Loeffler Restricts SBA Loans to US Citizens Only, Suspends 620 Companies in Major Policy Shift

Kelly Loeffler serves as the Administrator of the Small Business Administration, effective February 19, 2025, according to Paul Hastings Daily Financial Regulation Update from March 30, 2026. Under her leadership, the agency recently restricted loans to United States citizens and nationals only. LAist reports that this policy began in March 2026, expanding to Small Business Administration backed loans in April. Green card holders and businesses partly owned by permanent legal residents no longer qualify. Small Business Administration spokesperson Jean Clemmons stated the change ensures more American citizens access funding previously granted to noncitizens. In fiscal year 2025, the agency approved 3,358 such loans, representing 4 percent of 85,000 total loans. On March 19, 2026, the Small Business Administration published a direct final rule in the Federal Register to align regulations with the Administrative False Claims Act of 2023. JD Supra notes this expands enforcement by raising the jurisdictional threshold for administrative actions to 1 million dollars from 150,000 dollars, extending the statute of limitations to the later of six years from violation or three years from agency knowledge, up to 10 years total, and adding reverse false claims liability. The rule takes effect May 4, 2026, unless significant comments arise by April 20. Additionally, the Small Business Administration suspended over 620 companies from its 8a contracting program due to data errors in financial calculations, as reported by the Washington Business Journal on March 30, 2026. Some firms dispute the suspensions. Note that Linda McMahon, previously involved with the Small Business Administration, now leads the Department of Education as secretary, confirmed March 3, 2025. Listeners, thank you for tuning in. Please subscribe for more updates. This has been a quiet please production, for more check out quiet please dot ai. For more http://www.quietplease.ai Get the best deals https://amzn.to/3ODvOta This content was created in partnership and with the help of Artificial Intelligence AI.