CRACKDOWN: Trump admin announces new rules to prevent awarding illegals with taxpayer benefits

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The Small Business Administration is doubling down to prevent illegal aliens from receiving taxpayer benefits, and will now be requiring proof of citizenship in order to qualify for any of its programs or loans.

The SBA will also be moving its offices out of six sanctuary cities.

A press release posted on the SBA website Thursday announced a number of steps the agency is taking:[emphasis added]

Today, U.S. Small Business Administration Administrator Kelly Loeffler announced a series of reforms to put American citizens first by ending taxpayer benefits for illegal aliens and moving SBA offices out of sanctuary cities. These actions support President Trump’s agenda to secure our borders – which has already resulted in the lowest rates(Link is external) of illegal border crossings in history.

In the coming days, the SBA will promulgate a new policy requiring SBA loan applications to include a citizenship verification provision to ensure only legal, eligible applicants can access SBA programs. Lenders will be required to confirm that applicant businesses are not owned in whole or in part by an illegal alien, consistent with President Trump’s executive order(Link is external) ending the taxpayer subsidization of open borders.

Additionally, the SBA will relocate six of its regional offices currently in municipalities that do not comply with U.S. Immigration and Customs Enforcement. Over the coming months, the Atlanta, Boston, Chicago, Denver, New York City, and Seattle regional offices will be moved to less costly, more accessible locations that better serve the small business community and comply with federal immigration law.

“Over the last four years, the record invasion of illegal aliens has jeopardized both the lives of American citizens and the livelihoods of American small business owners, who have each become victims of Joe Biden’s migrant crime spree. Under President Trump, the SBA is committed to putting American citizens first again – starting by ensuring that zero taxpayer dollars go to fund illegal aliens,” Administrator Loeffler said.

“Today, I am pleased to announce that this agency will cut off access to loans for illegal aliens and relocate our regional offices out of sanctuary cities that reward criminal behavior. We will return our focus to empowering legal, eligible business owners across the United States – in partnership with the municipalities who share this Administration’s commitment to secure borders and safe communities.”

Under the last Administration, lax guardrails allowed illegal aliens to both apply for and get approved for SBA assistance. In June 2024, the agency approved a $783,000 loan application for a small business that was 49% owned by an illegal alien. Last month, under the leadership of this Administration, an internal SBA audit identified the illegal status of the individual and halted the loan from being disbursed – ensuring that $0 was distributed to the business.


“Today, I’m announcing that SBA will relocate our regional offices OUT of sanctuary cities – and implement new citizenship verification for loans, to ensure ZERO taxpayer dollars go to support illegal aliens. The SBA is putting American citizens – and small businesses – first!” Loeffler announced, sharing a video of a Fox News interview.

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