India, March 10 -- According to an SBA announcement, a new rule by President Donald Trump's administration will restrict SBA loan eligibility to American-owned businesses. The new rule prohibits non-citizens, including those with green cards, from applying for US Small Business Administration loans.

All SBA loan programs, including major lending programs and smaller assistance programs, will be affected by the move, SBA Administrator Kelly Loeffler announced on Monday. This includes key loan programs such as 7(a), 504, Microloan, and Surety Bond programs.

Under the updated guidance issued by the SBA, all direct and indirect owners of a company applying for an SBA-backed loan must be US citizens or US nationals whose principal residence ...