A Note on the Government Shutdown: The brief government shutdown has officially ended, with federal funding now extended through September 30, 2026. The SmartBiz team does not expect any disruption to the SBA loan process due to the brief shutdown. If you have questions about timing, our team is here to help.
The SBA has rescinded its recent rule change that allowed up to 5% foreign ownership for businesses seeking SBA loans. Effective March 1, 2026, SBA eligibility requirements have updated to a stricter standard.
What this means for borrowers:
100% of all direct and indirect owners must be U.S. Citizens or U.S. Nationals
All owners must have their principal residence in the United States, its territories, or possessions
Business owners planning to apply for SBA financing in 2026 should review their ownership structure and residency status to ensure compliance under the updated rules.
For borrowers currently in process, timing matters. Any loan with a PLP number issued on or after March 1, 2026, must meet the updated ownership and residency rules.
The SBA just released its 2025 Annual Report, and it’s full of milestones that directly impact small business owners across the country.
Here are just a few takeaways:
✅ In FY25, the SBA guaranteed 85,000 small business loans totaling $45 billion through its 7(a) and 504 programs.
✅ The Made in America Manufacturing Initiative aims to revitalize U.S. industry by empowering small manufacturers, bringing supply chains back home, and creating jobs.
✅ With expanded outreach and partnerships, the SBA is prioritizing veteran-owned and rural small businesses, clearing certification backlogs and improving access to capital, counseling, and federal contracts.
Whether you're planning to apply for funding, expand your operations, or just stay informed, these updates reflect an SBA that’s aiming to serve small businesses more directly, efficiently, and effectively.
New Legislation Brings AI Support to Small Businesses
The House of Representatives recently passed two bipartisan bills, the AI for Main Street Act and the AI-WISE Act, aimed at helping small businesses adopt and understand artificial intelligence. These bills would direct the SBA to expand training, resources, and AI literacy tools through its Small Business Development Centers and online platforms.
1. For discussion and general informational purposes only. All financing is subject to credit approval and determination of SBA eligibility by SmartBiz Bank and lenders in the SmartBiz network. Additional collateral may be required.
2. We conduct a soft credit pull that will not affect your credit score. However, in processing your loan application, SmartBiz Bank and the lenders with whom we work will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may impact your credit score.
The SmartBiz® Small Business Blog and other related communications from SmartBiz BankSM are intended to provide general information on relevant topics for managing small businesses. Be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed. Please consult legal and financial professionals for further information.
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