The Los Angeles County Department of Economic Opportunity (DEO) provides the Los Angeles small business community with information and resources that support resilience during economic disruption and drive start-up, growth, and mobility.
New Small Business Administration Loan Requirements
Effective March 1, 2026, the U.S. Small Business Administration (SBA) revised eligibility requirements for SBA-backed loan programs, including the SBA 7(a) and 504 Loan Programs.
Under the new rules, all business owners must be:
- A U.S. citizen or U.S. national, and
- Living primarily in the United States or its territories.
If a business has an owner who does not meet these requirements, the business may no longer qualify for certain SBA-backed loans
Potential Impacts on Local Businesses
Businesses may be affected if:
- The eligibility changes apply to new SBA loan applications with
- One or more owners are not U.S. citizens or U.S. nationals.
- One or more owners live outside of the United States.
- You were planning to apply for an SBA 7(a) or SBA 504 loan.
These changes do not automatically affect every business loan. Many banks, credit unions, nonprofit lenders, and community lenders offer financing options that do not use SBA loan programs.
Learn More About the SBA Loan Changes
The SBA provides official information about current eligibility requirements for SBA-backed loan programs. Businesses are encouraged to review the SBA’s guidance and speak directly with their lender regarding how these changes may affect their financing options.
Additional Financing Options
Even if longer eligible for an SBA-backed loan, businesses may still be able to access:
- Business loans from community lenders
- Microloans
- Nonprofit lending programs
- Community Development Financial Institutions (CDFIs)
- State and local small business programs
- Business grants, when available
Resources available:
Los Angeles Regional Small Business Development Center (SBDC)
Free business advising, financial analysis, loan packaging assistance, and business planning services.
California Office of the Small Business Advocate (CalOSBA)
Statewide business resources, technical assistance programs, and funding opportunities.
Community Development Financial Institutions (CDFIs)
Mission-driven lenders that may offer alternative financing options for small businesses.
DEO Support for Impacted Businesses
Small Business Services
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- Offered by DEO’s Office of Small Business
- Services
- Small Business Concierge
- Referrals for legal aid, capital, and workforce services
- Certification and contracting
- Government navigation, including with local, state, and federal agencies
Hiring and Training Services
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- Offered by DEO’s America’s Job Centers of California
- Services
- Layoff aversion and rapid response
- Recruitment services
- Financial incentives like tax credits and wage subsidies
- Customized training
Connect with DEO today!
America's Job Centers of California
Find your nearest center for hiring, training, and workforce support.
Not Sure If Your Business Is Affected?
If planning to apply for an SBA loan, contact:
- Business lender
- The SBA
- A qualified attorney or financial advisor
They can help you understand whether your business qualifies under the new rules.
