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Requires the Small Business Administration to ensure certain SBA loan program applications collect specified citizenship and identity information for applicants and owners. If the required information is missing after the law takes effect, or if an applicant or an owner meets the law’s definition of an “ineligible person,” the application is not eligible for the loan.
The Administrator of the Small Business Administration must ensure that any application for a loan under section 7(a) of the Small Business Act or title V of the Small Business Investment Act of 1958 includes the specific information listed in subsection (a).
Applications must include the date of birth for each individual applicant or for each individual owner of an applicant concern.
Applications must include certification that an individual applicant is either a U.S. citizen, a U.S. national, or a lawful permanent resident, OR that an applicant concern or a guarantor is 100 percent beneficially owned by individuals who are U.S. citizens, U.S. nationals, or lawful permanent residents.
Applications must include certification that no direct or indirect owner of an applicant concern is an ineligible person.
Applications must include documentation of the alien registration number for any lawful permanent resident who is an individual applicant or an owner of an applicant concern.
2 meetings related to this legislation
Who is affected and how:
Small businesses seeking SBA-backed loans: Most directly affected. Loan applicants must provide additional citizenship and identity details for owners; missing information will block access to the loan.
Business owners who are noncitizens or have nonstandard documentation: May face increased documentation hurdles or disqualification if they fall within the statute's "ineligible person" definition or cannot provide the required information.
SBA and participating lenders: Must revise application forms, verification processes, and training; they bear the administrative work of validating the new data fields and enforcing ineligibility rules.
Third-party preparers and agents: Will need to collect additional data and may face more stringent vetting responsibilities.
Broader effects: The rule can reduce fraud and ensure loans go to statutorily eligible recipients, but it may also restrict access for some small businesses that lack required documents and create privacy and data-protection needs for collected identity information.
Overall, the bill mainly changes documentation and eligibility checks for SBA lending programs rather than changing loan amounts or program structure.
Last progress June 9, 2025 (8 months ago)
Introduced on April 17, 2025 by Beth Van Duyne
Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
Updated 6 days ago
Last progress June 4, 2025 (8 months ago)