LOS ANGELES — The Los Angeles County Board of Supervisors March 3 approved a motion to authorize the county to file, initiate, join or support legal action challenging the U.S. Small Business Administration’s exclusion of lawful permanent residents from accessing SBA-backed loans.
On Feb. 4, at the request of the Trump administration, the Small Business Administration announced a new rule excluding permanent residents from securing SBA-backed loans, effective March 1. Since its establishment in 1953, the SBA has allowed both U.S. citizens and lawful permanent residents, including green card holders, to apply for loans.
“Limiting SBA loans to only U.S. citizens deeply impacts our working families, small businesses and students, especially those from immigrant communities,” said Chair and First District Supervisor Hilda L. Solis. “This new policy not only endangers our local economy but also undermines the very promise of the American Dream and generational wealth. Today’s motion reflects Los Angeles County’s commitment to stand with Angelenos and uphold the principle that hard work should lead to opportunity and stability for our communities and future generations.”
“What we are seeing at the federal level is not accidental. It is a systematically racist system of determining who gets access to capital and to economic advancement. Keeping entrepreneurs and students from being able to access capital for their business or to gain an education will only lead to more predatory options for the financial support people need – this means higher interest rate loans at traditional banks or more aggressive pay-day lenders. We are standing up to that with this motion because economic opportunity should not depend on immigration status or whether your profession is politically valued,” said Chair Pro Tem and Second District Supervisor Holly J. Mitchell.
In addition, the U.S. Department of Education has taken steps to deprofessionalize certain careers, including nursing and social work, and to alter the Public Service Loan Forgiveness Program. Under the proposed changes, employers currently eligible under the loan forgiveness program could be removed if deemed by the federal government to be engaged in illegal activity, without clear guidelines. County officials say both federal actions could have significant financial consequences for Los Angeles County families.
The motion directs county counsel to pursue legal options regarding both the SBA rule and the Department of Education actions. It also instructs the Departments of Economic Opportunity, Human Resources, and Consumer and Business Affairs to report back within 90 days on the potential workforce development impacts of the deprofessionalization decision across the county.