HR 2966: Requiring Citizenship Status Documentation for Small Business Loans

Direct Link to Bill

Introduction

HR 2966 is a bill introduced on April 17, 2025, that aims to require the Administrator of the Small Business Administration to request certain citizenship status documentation from applicants for loans under section 7(a) of the Small Business Act or title V of the Small Business Investment Act of 1958.

Section 1: Short Title

This Act may be cited as the ‘American Entrepreneurs First Act of 2025’.

SECTION 2. REQUIREMENTS FOR CITIZENSHIP STATUS DOCU-MENTATION FOR CERTAIN LOAN PROGRAMS

The Administrator of the Small Business Administration shall ensure that any application for a loan submitted under section 7(a) of the Small Business Act or title V of the Small Business Investment Act of 1958 includes the following information:

• The date of birth for each individual applicant for such loan or for each individual owner of an applicant concern.
• Certification that an individual applicant for such loan is a citizen of the United States, a national of the United States, or a lawful permanent resident of the United States; or
• Certification that an applicant concern for such loan or a guarantor for such loan is 100 percent beneficially owned by individuals who are either citizens of the United States, nationals of the United States, or lawful permanent residents of the United States.
• Certification that no direct or indirect owner of an applicant concern for such loan is an ineligible person.
• Documentation of the alien registration number of any lawful permanent resident who is an individual applicant for such loan; or

PROHIBITION

An applicant for a loan under section 7(a) of the Small Business Act or title V of the Small Business Investment Act of 1958 is ineligible for such loan if:

1. The applicant submits the application for such loan after the date of the enactment of this Act and such application does not contain the information required under subsection (a);
2. In the case such applicant is an applicant concern, any direct or indirect owner of such applicant concern is an ineligible person;
3. In the case such applicant is an individual applicant, such applicant is an ineligible person.

INELIGIBLE PERSON DEFINED

In this Act, the term ‘ineligible person’ means:

• An asylee;
• A refugee;
• An individual issued a visa to remain in the United States;
• An alien classified as a nonimmigrant under any subparagraph of section 101(a)(15) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15));
• An alien to whom deferred action has been granted pursuant to the Deferred Action for Childhood Arrivals policy announced by the Secretary of Homeland Security on June 15, 2012; or
• An alien present in the United States without lawful status under the immigration laws (as such term is defined in section 101(a) of the Immigration and Nationality Act (8 U.S.C. 1101(a))).