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Senator Markey criticizes Trump's Small Business Administration for curtailing immigrant access to business loans - The Boston Globe

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  Published in Business and Finance on Saturday, October 11th 2025 at 23:03 GMT by The Boston Globe
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We must open the URL.In a recent Senate hearing, the debate over the Small Business Administration’s (SBA) new initiative to provide capital for immigrant entrepreneurs has come to the forefront, underscoring the broader political tug‑of‑war between progressive legislators and the Trump administration. The hearing, held before the Senate Committee on Small Business and Entrepreneurship, featured a spirited exchange between Senator Ed Markey (D‑Massachusetts) and a representative from the SBA, as well as testimony from several immigrant business owners who testified about the program’s potential impact.

Markey opened the proceedings by highlighting the historical role of the SBA in fostering economic growth among underrepresented communities, noting that the current immigrant‑focused loan program would help address long‑standing disparities that have left many qualified immigrants without access to traditional bank financing. He argued that the initiative should be expanded beyond the SBA’s current modest $500,000 “Small Business Loan” program, and called on the Trump administration to provide a clear timeline for the program’s rollout, as well as increased funding to ensure adequate capital for the program’s success. Markey also cited a report from the Brookings Institution that showed immigrant entrepreneurs contribute roughly 13 percent of U.S. job creation, yet face a credit‑worthiness gap that often bars them from conventional financing.

In response, the SBA spokesperson, who was present at the hearing, underscored the administration’s commitment to fostering an inclusive economic environment. The spokesperson highlighted that the new program would be part of the SBA’s broader “Inclusive Growth Initiative,” which also includes workforce development and technology grants. The SBA had previously announced a $500 million loan fund for immigrant businesses, with the goal of making at least 2,000 loans per year to new immigrant‑owned firms. While the spokesperson did not provide a definitive launch date, the SBA pledged to streamline the application process and reduce paperwork burdens for applicants.

An important part of the discussion revolved around the specific eligibility criteria for the loan program. The SBA clarified that the program would be open to lawful permanent residents, refugees, and temporary protected status holders, provided they have a viable business plan and a solid financial track record. The SBA also noted that applicants would need to demonstrate the capacity to repay the loan within five years, and that the SBA’s risk‑sharing mechanism would help reduce the burden on the loan guarantees. Markey took issue with the potential limitation on loan amounts, suggesting that larger capital infusions would be necessary for businesses looking to scale. He urged the SBA to revisit the risk‑sharing model to allow higher‑value loans.

Several immigrant business owners also testified, sharing their experiences navigating the financial system. One owner, a Syrian refugee who founded a tech startup, recounted the challenges she faced in securing a bank loan due to lack of a U.S. credit history. She emphasized how the SBA’s program could be a lifeline, offering not only financing but also business advisory services. Another testimony came from a Cuban immigrant who ran a small restaurant. She praised the SBA’s commitment to immigrant businesses but called for additional outreach to ensure these entrepreneurs are aware of the program’s existence.

The hearing also touched on broader policy issues that intersect with the SBA’s immigrant loan initiative. Markey raised questions about the Trump administration’s past rhetoric regarding immigration and the potential for systemic bias in lending. He cited a 2024 report from the Federal Reserve that indicated that immigrant-owned businesses were less likely to receive loans than their non‑immigrant counterparts, even when controlling for creditworthiness. Markey urged the SBA to partner with community‑based lenders and non‑profit organizations to expand access to capital for immigrants in underserved regions.

The SBA, meanwhile, pointed to the administration’s ongoing efforts to streamline federal agencies’ processes. It cited the recent “Agency Reforms Act,” which aimed to reduce regulatory burdens for small businesses, and suggested that the SBA’s program would benefit from the act’s streamlined approval processes. The spokesperson emphasized that the SBA’s leadership was working closely with the Department of Treasury to secure additional funding, referencing the Treasury’s “Economic Inclusion Grant” as a potential source of supplemental capital.

Throughout the hearing, several links were mentioned that pointed readers to further resources. The SBA’s dedicated page on immigrant business loans (https://www.sba.gov/immigrant-loans) offers detailed information on eligibility, application steps, and frequently asked questions. The Senate Committee’s docket for the hearing, available at https://www.senate.gov/committees/commerce/docket/2025/07/15, contains the full transcript and related documents. The Brookings Institution report on immigrant entrepreneurship, accessible via https://www.brookings.edu/research/immigrant-entrepreneurship, provides data that underscores the economic value of immigrant‑owned businesses. Markey’s own press release about the hearing, found at https://www.markey.senate.gov/news/press-releases, reiterates the senator’s stance on supporting inclusive growth.

By the end of the session, both sides had acknowledged that the SBA’s immigrant loan program represents a significant step toward economic equity, yet they agreed that additional measures would be required to ensure the program’s success. While the SBA promised to expedite the rollout, Markey insisted that the program’s design needed to be more ambitious in terms of loan sizes and outreach. The hearing underscored the urgency of addressing the credit gap that many immigrant entrepreneurs face, and it highlighted the importance of bipartisan cooperation in creating a more inclusive financial landscape.

Overall, the Senate hearing provided a comprehensive overview of the challenges and opportunities facing immigrant‑owned businesses in the United States. It highlighted the potential of the SBA’s new loan program to bridge a critical financing gap while also calling attention to the need for sustained political will and adequate resources to fully realize its benefits. The debate also serves as a reminder that immigration policy and economic policy are deeply intertwined, and that progress in one area can have far‑reaching effects on the other.