The House of Representatives has adopted new legislation that would prevent non -American citizens from receiving loans in small businesses (SBA).
The bill, which was adopted with eight Democrats membership Republicans To vote in favor on Friday, is now heading for the Senate.
“By adopting my first act of American entrepreneurs, the Republicans of the Chamber once again gathered to support the common sense reforms protecting the hard -won taxes of America, the loss of waste, fraud, abuse and theft by hostile foreign actors”, ” Republican Texas representative Beth van Duyne, one of those behind the bill, said in a press release.
Why it matters
The adoption of the bill intervenes in the middle of a burst of legislation presented by the Republican representatives that this session was aimed at restrict the advantages and rights of immigrantsmainly those who have no legal status. While a legislation remains blocked in the House, the majority of the GOP in both chambers increases the probability of passage.
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What to know
The American Entrepreneurs First Act, also known as HR 2966, aims to prevent funds from small businesses (SBA) from reaching people who are not American citizens or legal permanent residents.
Those who ask for SBA funds or loans should now prove that they are citizens, American nationals or holders of green cards before the release of cash, if the bill becomes a law.
Immigrants without legal status are generally prohibited from access to federal advantages, but the GOP has shown an increasing concern that the systems are abused, thus having a negative impact on the Americans.
Although the Van Duyne’s wording seems to suggest that SBA funds are only available for American citizens, rather than for companies under foreign or undocumented property, the bill itself said that green cards holders would be eligible for applying.
Those who have other visas to stay in the United States, as well as refugees and asyères, would not be eligible to receive loans.
The Democrats of the Small Business Committee of the Chamber urged the Trump administration to strengthen support for small businesses and ensure that federal programs are adequately funded, while seeking to abolish obstacles to financing.
What people say
Chamber Committee on Small Democratic Businesses of the Nydia Mr. Velázquez ranking classification said Nowsweek In a declaration: “There is no evidence that SBA loans go to undocumented immigrants – the current rules already require the major part of the American property of a business to obtain a loan. This bill will block entrepreneurs, including the beneficiaries of the DACA and other legitimate immigrants, of obtaining the capital they need and the buried lenders in the Redaye.
Reed Westcott, Vice-President of the National Small Business Association of Government Affairs and Federal Policy, in a press release: “The bill of representative Van Duyne, the first act of American entrepreneurs, shows that Congress focuses on supporting American companies on the main street and ensuring that American entrepreneurs can access the resources they need and deserve. “”
Representative Beth Van Duyne, a Texas Republican, in a press release: “The American Entrepreneurs First Act ensures that small businesses’ administration funds are directed to American companies and not accessible by individuals or companies with foreign or undocumented property and check the age of all beneficiaries.”
What happens next
The bill is now going to the Senate for debate and voting on a later date.
Update 6/6/25, 12:53 pm HE: This article has been updated with additional information.