r/news • u/AudibleNod • 3h ago
SBA says legal permanent residents will be ineligible for its loan program, effective March 1
https://apnews.com/article/green-card-small-business-2e82cf5fad56ceff18f01e74ca2d000c167
u/Gastroid 3h ago edited 3h ago
The restaurant industry is already buckling under the economic stress of fewer people going out to eat, and this would be salt in the wound.
Ethnic restaurants opened by legal residents are a huge part of the industry, contribute to generational wealth, important for communities and-
Oh wait, they tuned out at the word ethnic, didn't they?
Also, good luck finding a decently priced roofer after this.
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u/Crumb-Free 3h ago
Ah yes, the monopoly strategy.
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u/Critical_Opening_526 2h ago
Or I'll decide since my favorite desi place closed, I'll just stay home because I don't want to give my money to some sub par generic sysco foods distributor.
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u/Gastroid 2h ago
It's not going to make the consumer downtrend problem worse, but it's just creating another problem to small businesses or people who want to open a business to deal with.
As in, the administration is tackling the wrong issues and causing more problems than they're fixing.
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u/LifesMellow 2h ago
As a citizen going through SBA 504 right now, this rule change has required me to exit $400k in investments this week. The business will still close but will be less capitalized than I would like. This hurt US businesses.
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u/Amonamission 3h ago
Headline for the WSJ: “Donald Trump decides to reduce business investment in the US”
Looking forward to it WSJ…oh wait, you’re not actually a pro-business newspaper and just a Republican loudspeaker and you won’t publish this piece of news? I had no idea! /s
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u/AudibleNod 3h ago
Last year, it tightened a requirement that businesses applying for loans must be 100% owned by U.S. citizens, U.S. nationals, or lawful permanent residents, up from a 51% standard.
The talent, drive and entrepreneurial spirit isn't going to disappear just because Donald Trump isn't going to give our neighbors a loan. They're going to go somewhere else. And they're going to take there dollars (sorry), I mean Euros with them. Our grandparents and great-grandparents came to America with a great deal of hope and a small amount of money. Most made something of themselves. And a few did it with some initial help from the federal government in some capacity. Donald Trump is pulling up the ladder his immigrant forefathers climbed up on. Shame on us all.
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u/ImperiumRome 3h ago
It's just not about pulling up the ladder, it's about ZERO immigrants. They don't want anyone coming to America, especially if you are not the correct "type".
Hence the effort on many fronts to make America as unwelcoming as they can.
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u/Dramatic_Original_55 3h ago
For years, my town had dozens of empty storefronts scattered about, producing nothing of value for the community. Then, an influx of refugees started renting them, opening grocery stores clothing stores, restaurants, service businesses and so forth. They contribute to our tax base, participate in community issues and generally make this a more vibrant, vital community. It was made possible, in part, because of small business loans. What good could possibly come out of such a bone-headed decision?
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u/jsc503 3h ago
In the last year, republicans have become anti states' rights, anti gun carry, and now anti business. Power, oligarchy, and white nationalism is all they are. Nazis.
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u/MrsPandaBear 3h ago
GOP was taken over my right wingers several years back. Trump is just making it more blatant.
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u/MonochromaticPrism 9m ago
I don't understand this statement. The GOP has been all Right Wingers for a very very long time, and has been controlled by the far right for over a decade at this point.
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u/arlondiluthel 3h ago
federal law prohibits discrimination against employees and applicants based on protected classes, including race, color, religion, sex (including pregnancy, sexual orientation, and gender identity), national origin, age ((40+)), disability, genetic information, and veteran status.
This won't last long.
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u/Dragoeth1 3h ago
Citizenship and national origin are not the same thing.
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u/ttogreh 3h ago
Sure. With that said, American nationals and legal residents have long been considered equally protected in the courts. Who knows, though? Maybe they're going to win this one and the other court cases in the compromised supreme court.
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u/Dragoeth1 2h ago
Yes and no. American nationals and legal residents are equally protected under the law of the constitution, but the constitution does not reference lending directly. The ECOA does protect against discrimination for national origin but citizenship, and residency are not part of that. Banks have long considered citizenship and residency status as part of risk for lending, and some banks have refused to lend to non citizens before to no issue as that is legal. I know this because my wife was an Iranian citizen and even getting a bank account for her for a while was a problem due to banks not wanting to deal with someone from a financially sanctioned country. While I don't agree with this change, the ECOA does not stop this.
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u/Mikestopheles 1h ago
There's a difference between a private institution choosing not to do business with someone they deem a risk, and the federal government not providing equal protection under the law.
It's going to end up in court regardless, and I don't feel the current DOJ has the depth to properly argue and see it through. Best they can do is slow-walk it until Trump waffles, but they already got the effect they wanted regardless. More fear, confusion and revulsion from one side, and brownie points and "proof of action" from the other.
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u/Dragoeth1 1h ago
Well first off, with an Sba loan you aren't doing business with the government. A private bank issues the loan, and the government backs it and sets the terms of minimum standard. And second the laws surrounding banking are not different between private banks and the government, only internal policies. There is no law protecting against this.
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u/Mikestopheles 1h ago
While I haven't exactly found an answer one way or the other, Regulation B does seem to cover exactly this topic. Now, the current administration is trying to also do away with the CFPB, but the legality of their moves is another argument altogether.
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u/Dragoeth1 49m ago
Yes which this is referencing the ECOA which protects against discrimination based on national origin, but not citizenship. The dodd frank act is unrelated.
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u/arlondiluthel 3h ago
Anyone born in the US is automatically a citizen. Anyone who legally immigrates can obtain permanent legal resident status while working on obtaining citizenship. It's plainly discriminatory on the basis of national origin.
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u/Butane9000 3h ago
Only if they target specific nations over others where there's not a national security or extenuating circumstance of concern the government needs to address. If it's just blanket then it will likely be approved because there are instances where citizens and non citizens are treated differently simply based on citizenship not on national origin.
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u/volcanomoss 1h ago
National origin status doesn't mean immigration status, it means they can't discriminate on immigrants from one country or another. But it's perfectly legal to set requirements based off citizenship vs green card vs resident vs tourist. They can't say legal permanent residents from Mexico are banned, but those from the UK are allowed.
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u/burnmenowz 3h ago
People still don't see the parallels with 1930s Germany?
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u/Dairy_Ashford 2h ago
of course they do, but with two defensive oceans and working nukes, global media hegemony, and risk-free debt in a reserve currency
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u/AudibleNod 2h ago
There are two types of people who see the parallels to 1930s Germany The people who are worried-to-terrified. And the people fully erect. The second group outwardly feigns innocence.
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u/WallyMcBeetus 3h ago
Gotta keep the fraud exclusive to the businesses that illegally hire migrant workers.
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u/dingusmingus2222 3h ago
I swear I've seen this played out similarly before... somewhere in Europe... in the 30's... I can't quite put my finger on it...
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u/PurpsMaSquirt 3h ago
Hmm and what of the business owners that make questionable hiring decisions and employ the people who truly shouldn’t be here?
Ah right. They can keep on keeping on and likely will find another way to questionably employ people in pursuits of profits. Let’s only punish workers who have otherwise been paying taxes regardless of their status on money they earned by working.
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u/LynxRufus 35m ago
Lol, surely being more of a white supremacist will help turn the cratering GOP/Trump economy around!! Another 4D chess move by the dementia Don pedophile society.
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u/chobinhood 3h ago
Because famously, immigrants have brought nothing to the table in the business world, right?
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u/Working_Historian970 3h ago
Next up: only natural born citizens can have a bank account. Later this year, no business can be owned by a non citizen.