American Entrepreneurs First Act of 2025

Bill Number

H.R. 2966

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Commerce

Status

Passed House

Latest Action

2025-06-09: Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.

Last Updated

2026-07-11T01:58:19Z

AI-Generated Summary

Purpose

The "American Entrepreneurs First Act of 2025" aims to restrict access to certain Small Business Administration (SBA) loan programs by requiring applicants to provide proof of U.S. citizenship, nationality, or lawful permanent residency. It prioritizes loans for U.S. citizens, nationals, and lawful permanent residents while excluding certain immigrants and non-citizens, ensuring federal small business support benefits those with specific legal immigration statuses.

Key Provisions

• Required Application Information: For loans under the SBA's 7(a) program (a common type of SBA-guaranteed loan for small businesses) or title V of the Small Business Investment Act (which supports microenterprise development), applicants must submit:
• Date of birth for each individual applicant or owner of the business applying.
• Certification that the individual applicant is a U.S. citizen, national, or lawful permanent resident (LPR); or that the business or loan guarantor is 100% owned by such individuals.
• Certification that no direct or indirect owner of the business is an "ineligible person" (defined below).
• Documentation of the alien registration number for any LPR who is an applicant or owner.
• Eligibility Prohibitions: After the Act's enactment, applicants are ineligible if:
• The application lacks the required information.
• Any owner of the business is an ineligible person.
• The individual applicant is an ineligible person.
• Definition of "Ineligible Person": This includes:
• Asylees (individuals granted asylum due to persecution fears).
• Refugees (those admitted for similar protection reasons).
• Individuals on visas to stay in the U.S.
• Nonimmigrants (temporary visitors or workers under specific visa categories, per the Immigration and Nationality Act).
• Recipients of Deferred Action for Childhood Arrivals (DACA, a policy protecting certain undocumented immigrants brought to the U.S. as children).
• Undocumented immigrants (those present without legal status).

Significant Changes to Existing Law

• Previously, SBA loan programs like 7(a) and title V did not mandate specific citizenship status documentation or exclude applicants based on immigration categories like asylees, refugees, or DACA recipients.
• This Act introduces mandatory certifications and documentation to verify eligibility, effectively barring loans to businesses with any ownership by ineligible persons and requiring full compliance for post-enactment applications.
• It amends application processes under the Small Business Act (15 U.S.C. 636(a)) and Small Business Investment Act (15 U.S.C. 695 et seq.) without altering loan amounts, terms, or other core mechanics.

Potential Impacts

• On Government Agencies: The SBA must update application forms, verification processes, and training to enforce these rules, potentially increasing administrative workload and costs for compliance checks.
• On Citizens and Residents: U.S. citizens, nationals, and LPRs gain clearer priority access to loans, which could boost small business formation among these groups; however, it may limit overall program participation if eligible applicants decrease.
• On Immigrants and Non-Citizens: Asylees, refugees, DACA recipients, visa holders, and undocumented individuals (or businesses they own) are excluded, potentially hindering their entrepreneurial opportunities and economic integration.
• On International Relations: Minimal direct impact, though it could signal stricter U.S. policies on immigration-linked business support, possibly affecting perceptions of U.S. openness to global entrepreneurs.

Main Stakeholders Affected

• Small Business Owners and Applicants: Particularly immigrants, refugees, asylees, and DACA recipients who may lose access to SBA loans, versus U.S. citizens and LPRs who benefit from reduced competition.
• Small Business Administration (SBA): Responsible for implementation, including enforcement and potential legal challenges to new rules.
• Federal Government and Taxpayers: As SBA loans are government-backed, restrictions could reduce default risks but also limit the program's reach in supporting diverse small businesses.
• Immigration Advocacy Groups: Likely to engage due to exclusions affecting vulnerable populations.

Notable Legal, Constitutional, or Political Implications

• Legal: The Act ties SBA eligibility to immigration status under the Immigration and Nationality Act, potentially inviting lawsuits over whether exclusions (e.g., for refugees or DACA) violate anti-discrimination laws or administrative procedures; it does not require new rulemaking but mandates direct SBA action.
• Constitutional: Could raise equal protection concerns under the 14th Amendment by distinguishing between classes of immigrants without clear justification, though Congress has broad authority over federal benefits and immigration.
• Political: Reinforces debates on immigration policy and economic nationalism, prioritizing "American" entrepreneurs; it may polarize views on federal support for small businesses amid broader immigration reform efforts, with the bill's passage in the House (June 6, 2025) indicating partisan support.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Van Duyne, Beth [R-TX-24]

Cosponsors (1)

Rep. Cloud, Michael [R-TX-27]

Recent Actions

• 2025-06-09: Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
• 2025-06-06: Motion to reconsider laid on the table Agreed to without objection.
• 2025-06-06: On passage Passed by the Yeas and Nays: 217 - 190 (Roll no. 156). (text: CR H2510-2511) (Roll call 156)
• 2025-06-06: Passed/agreed to in House: On passage Passed by the Yeas and Nays: 217 - 190 (Roll no. 156). (Roll call 156)
• 2025-06-06: The previous question was ordered pursuant to the rule.
• 2025-06-06: DEBATE - The House proceeded with one hour of debate on H.R. 2966.
• 2025-06-06: Rule provides for consideration of H.R. 2483, H.R. 2931, H.R. 2966 and H.R. 2987. The resolution provides for consideration of H.R. 2483 under a structured rule and for consideration of H.R. 2931, H.R. 2966, and H.R. 2987 under a closed rule. The resolution provides for one hour of debate and one motion to recommit on each bill.
• 2025-06-06: Considered under the provisions of rule H. Res. 458. (consideration: CR H2510-2515)
• 2025-06-03: Rules Committee Resolution H. Res. 458 Reported to House. Rule provides for consideration of H.R. 2483, H.R. 2931, H.R. 2966 and H.R. 2987. The resolution provides for consideration of H.R. 2483 under a structured rule and for consideration of H.R. 2931, H.R. 2966, and H.R. 2987 under a closed rule. The resolution provides for one hour of debate and one motion to recommit on each bill.
• 2025-05-21: Placed on the Union Calendar, Calendar No. 83.
• 2025-05-21: Reported (Amended) by the Committee on Small Business. H. Rept. 119-112.
• 2025-05-21: Reported (Amended) by the Committee on Small Business. H. Rept. 119-112.
• 2025-04-30: Ordered to be Reported (Amended) by the Yeas and Nays: 15 - 11.
• 2025-04-30: Committee Consideration and Mark-up Session Held
• 2025-04-17: Referred to the House Committee on Small Business.

Bill Versions

• American Entrepreneurs First Act of 2025 — issued 2025-06-06 — PDF (6 pages)
• American Entrepreneurs First Act — issued 2025-04-17 — PDF (4 pages)
• American Entrepreneurs First Act of 2025 — issued 2025-06-09 — PDF (4 pages)
• American Entrepreneurs First Act of 2025 — issued 2025-05-21 — PDF (6 pages)

Related Bills

• H.Res. 458 (119th Congress)