In a decisive move on Friday, the U.S. House of Representatives passed a bill that prevents non-citizens from accessing Small Business Administration (SBA) loans, sparking debate over immigration and taxpayer fund protection.

The legislation, known as the American Entrepreneurs First Act of 2025, was approved with a 217-190 vote, aiming to ensure that only American citizens can receive SBA financial support by mandating citizenship verification for loan applicants, as National Review reports.

The push for this bill began earlier in 2024 when SBA Administrator Kelly Loeffler introduced a new rule in March requiring citizenship checks on loan applications to curb potential misuse of funds.

Significant step in immigration enforcement

Under Loeffler’s leadership, the SBA identified a problematic case in June 2024, halting a $783,000 loan to a business with significant ownership by an undocumented individual.

This incident underscored the need for stricter guidelines, aligning with broader efforts to support President Trump’s immigration policies and prevent taxpayer money from funding unauthorized activities.

The citizenship verification rule is one of several reforms initiated by Loeffler to reinforce government accountability and focus on American entrepreneurs.

Congressional support for safeguards emerges

On Friday, the House vote saw bipartisan support, with eight Democrats joining Republicans to pass the American Entrepreneurs First Act of 2025 by a margin of 217-190.

These Democrats, representing competitive districts where immigration is a pressing concern, include Representatives Marie Gluesenkamp Perez of Washington, Marcy Kaptur of Ohio, Tom Suozzi and Laura Gillen of New York, and Don Davis of North Carolina.

Their support highlights the intersection of local political pressures and national policy debates surrounding immigration and economic resources.

Loeffler lauds outcome

SBA Administrator Kelly Loeffler expressed appreciation for the House’s decision, emphasizing the importance of the new safeguards.

“I’m grateful to the House lawmakers who voted today in support of the SBA’s efforts to implement citizenship and birth date verification,” Loeffler said.

“Illegal aliens and fraudsters have no right to taxpayer-backed loans at the SBA. With these common-sense guardrails, the American Entrepreneurs First Act will help put our deserving job creators first,” she added.

Republicans tout broader agenda

Rep. Beth Van Duyne, a Republican from Texas, celebrated the passage of the bill she sponsored, framing it as a victory for fiscal responsibility.

“By passing my American Entrepreneurs First Act, House Republicans have, once again, come together to support common sense reforms protecting America’s hard-earned tax dollars from being lost to waste, fraud, abuse, and theft by hostile foreign actors,” Van Duyne stated.

House Speaker Mike Johnson of Louisiana also underscored the alignment with broader Republican goals, stating, “From ending taxpayer-subsidized open borders to restoring oversight capabilities at SBA, House Republicans continue to bring common sense back to government and refocus agencies on their core missions. We will keep passing the president’s executive orders and working in lockstep with this Administration to fulfill our commitment to the American people.”