RELEASE: Cloud, Van Duyne Introduce the American Entrepreneurs First Act to Codify Trump Administration’s SBA Loan Citizenship Verification

WASHINGTON — Congressman Michael Cloud (TX-27) and Congresswoman Beth Van Duyne (TX-24) introduced the American Entrepreneurs First Act, legislation aimed at protecting taxpayers by ensuring that only lawful, eligible applicants can access programs administered by the Small Business Administration (SBA).

The bill follows recent reforms announced by President Trump and SBA Administrator Loeffler, requiring applicants to verify their age and citizenship status before receiving federally backed loans. The American Entrepreneurs First Act closes loopholes that previously allowed individuals in the country illegally to access SBA funds by requiring:

• Submission of the date of birth for each individual applicant or business owner;
• Certification that each applicant is a U.S. citizen, U.S. national, or lawful permanent resident—or, in the case of businesses, that 100% of ownership meets these criteria;
• Disclosure of alien registration numbers for lawful permanent residents;
• Certification that no direct or indirect business owner is an “ineligible person,” including asylees, refugees, visa holders, DACA recipients, or undocumented individuals.

“In early March, the Trump Administration announced a long overdue reform requiring citizenship verification for all SBA loans,” said Cloud. “Now, it’s up to Congress to codify this requirement into law by passing the American Entrepreneurs First Act. With over $25 billion in SBA loans approved last year, it’s unacceptable that there’s no legal mandate ensuring those funds go to people who are here legally. American tax dollars should support American businesses—not businesses owned by those here illegally.”

“The American Entrepreneurs First Act is a common-sense measure to protect precious Small Business Administration funds by ensuring they are directed to American citizens and not accessible by individuals or businesses with foreign or undocumented ownership,” said Van Duyne. “I share President Trump and SBA Administrator Loeffler’s commitment to establish this much needed verification process so only qualified individuals can benefit from SBA programs, loans, and services. Following years of pandemic era fraud and theft of public funds because of lax verification procedures, this measure serves as an ongoing effort to reform security and access to federally funded programs.”

“The American Entrepreneurs First Act puts America’s small business owners first by ensuring only U.S. Citizens can receive SBA loans,” said Chairman Roger Williams. “SBA loan programs are backed by U.S. tax dollars and should be available to U.S. citizens. Unfortunately, the Trump Administration has found various instances where these loans have been blatantly abused by foreign nationals. I thank my colleagues, Representatives Van Duyne and Cloud, for highlighting this issue and permanently fortifying the SBA against this kind of abuse. It’s time to put American entrepreneurs first again.”

Click here to read the bill.

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