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The Small Business Administration is relocating from six major sanctuary cities and cutting off loans to illegal immigrants as part of President Trump’s aggressive new immigration enforcement strategy.
Key Takeaways
- The SBA will close regional offices in six sanctuary cities: Atlanta, Boston, Chicago, Denver, New York City, and Seattle, relocating to areas that comply with federal immigration laws.
- New policy requires SBA loan applicants to verify citizenship, making businesses with non-U.S. citizen owners ineligible for SBA loans.
- SBA Administrator Kelly Loeffler stated the move aims to “put American citizens first by ending taxpayer benefits for illegal aliens.”
- The relocations follow congressional scrutiny of sanctuary city mayors who have spent billions of taxpayer dollars supporting illegal immigrants.
- The decision aligns with President Trump’s inauguration day executive order to expedite removal of illegal aliens and crack down on sanctuary jurisdictions.
Federal Agency Cuts Ties with Sanctuary Cities
The Small Business Administration has announced a significant policy shift that will see the federal agency severing ties with six major sanctuary cities across the United States. Regional offices in Atlanta, Boston, Chicago, Denver, New York City, and Seattle will be relocating to “less costly, more accessible locations” that explicitly comply with federal immigration laws. This move represents one of the first concrete steps by the Trump administration to use federal agency relocation as a tool against municipalities that limit cooperation with federal immigration authorities.
The decision comes amid mounting pressure from Republican lawmakers who have been investigating the financial impact of sanctuary policies. During recent congressional hearings, Democrat mayors from New York City, Chicago, Boston, and Denver faced intense questioning about the billions spent supporting illegal immigrants. New York City alone has reportedly spent $6.9 billion on services for illegal immigrants, while Chicago has spent $574.5 million and Denver $79 million.
American Citizens First: New Loan Restrictions
Beyond office relocations, the SBA is implementing strict new verification requirements for loan applicants. Under the new guidelines, all applicants must prove their citizenship status before accessing SBA programs. Businesses with non-U.S. citizen owners will become entirely ineligible for SBA loans, a significant change that directly affects immigrant entrepreneurs regardless of their legal status. The move aligns with Trump’s executive order signed on inauguration day aimed at expediting the removal of illegal aliens from the United States.
“Over the last four years, the record invasion of illegal aliens has jeopardized both the lives of American citizens and the livelihoods of American small business owners, who have each become victims of Joe Biden’s migrant crime spree. Under President Trump, the SBA is committed to putting American citizens first again – starting by ensuring that zero taxpayer dollars go to fund illegal aliens,” said Administrator Kelly Loeffler.
The SBA has framed these changes as efforts to prioritize American citizens and businesses while ensuring taxpayer resources aren’t directed toward illegal immigrants. This represents a significant policy shift from the previous administration and delivers on campaign promises made by President Trump to crack down on illegal immigration and sanctuary cities.
Pushback from Sanctuary City Leaders
The announcement has generated immediate backlash from leaders in the affected cities. Boston Mayor Michelle Wu recently testified before a congressional committee defending her city’s sanctuary policies and advocating for national immigration reforms. Wu emphasized the vital role immigrants play in Massachusetts’ economy but faced pointed questions about the financial burden placed on taxpayers by illegal immigration.
“After four years of a lackadaisical approach to border security and immigration, every lever of executive power is now being marshaled to enforce our laws, mass deport criminal illegal immigrants, safeguard our borders, and put American citizens first,” stated White House spokesperson Kush Desai.
The administration’s hardline stance has found support among immigration enforcement advocates who argue that sanctuary policies create public safety risks and financial burdens for communities. Rep. Anna Paulina Luna (R-FL) took the extraordinary step of criminally referring the sanctuary city mayors to the Department of Justice for investigation under federal laws prohibiting the harboring of illegal immigrants. Her actions underscore the increasingly aggressive approach Republicans are taking to combat sanctuary policies.
Legal Battles on the Horizon
The SBA’s announcement comes as the Department of Justice has already filed a lawsuit against Chicago and Illinois over their sanctuary laws, which the federal government claims hinder federal immigration officers from performing their duties. Legal challenges are likely to follow as the administration continues implementing its immigration enforcement agenda across multiple federal agencies. With over 200 U.S. cities and counties identifying as sanctuaries, this represents just the opening salvo in what is likely to be a prolonged battle.
“Today, I am pleased to announce that this agency will cut off access to loans for illegal aliens and relocate our regional offices out of sanctuary cities that reward criminal behavior. We will return our focus to empowering legal, eligible business owners across the United States – in partnership with the municipalities who share this Administration’s commitment to secure borders and safe communities,” declared Loeffler.
The SBA’s move represents a significant shift in how federal agencies interact with sanctuary jurisdictions and signals that the Trump administration intends to use every available tool to pressure these cities into compliance with federal immigration laws. As these policies take effect, small business owners in sanctuary cities may face new challenges accessing federal support, while the ongoing legal battles between federal and local authorities over immigration enforcement continue to intensify.