HR 2966: American Entrepreneurs First Act of 2025

HR 2966 in plain English: This bill changes eligibility rules for two Small Business Administration loan programs — the 7(a) and 504 loan programs — by requiring applicants to prove U.S. citizenship or lawful permanent residency. It would bar several categories of immigrants, including asylees, refugees, visa holders, nonimmigrants, DACA recipients, and undocumented individuals, from receiving these loans.

Stated purpose

This bill aims to ensure that SBA 7(a) and 504 small business loans are available only to U.S. citizens, nationals, and lawful permanent residents by adding citizenship documentation requirements to loan applications.

Key points

• Requires SBA 7(a) and 504 loan applicants to provide their date of birth and a citizenship or legal residency certification.
• Bars asylees and refugees from eligibility for these SBA loan programs.
• Bars visa holders, nonimmigrants, and DACA recipients from these SBA loans.
• Bars individuals without lawful immigration status from receiving SBA 7(a) or 504 loans.

Arguments supporters make

• Federally backed small business loans are funded by American taxpayers, so it is reasonable to direct those benefits to citizens and those with permanent legal ties to the country.
• Adding clear citizenship documentation requirements creates a consistent, verifiable standard that reduces the risk of fraud or misuse of public loan programs.
• Prioritizing citizens and lawful permanent residents for government-backed loans gives those individuals a competitive advantage in starting and growing businesses, which supporters say is a fair use of public resources.

Arguments opponents make

• The bill bars asylees and refugees who have been legally admitted to the United States from accessing loans, cutting off people who are in the country with government authorization and may be building stable businesses.
• DACA recipients, who were brought to the U.S. as children and have lived here for years, would lose access to SBA loans despite having legal work authorization and deep community roots.
• Restricting loan eligibility based on immigration status could reduce small business formation and economic activity in communities that rely on immigrant entrepreneurs, potentially harming local economies and job creation.

Tradeoffs

The bill directs a public lending benefit toward a narrower group of residents with permanent legal status, which may focus resources on that group but removes access for legally present immigrants and visa holders who also contribute to the economy and pay taxes.

Current status in Congress: Passed House.

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