Investing in the American Dream Act
- Bill Number
- H.R. 8563
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2026-04-28: Referred to the House Committee on Small Business.
- Last Updated
- 2026-06-16T14:55:24Z
AI-Generated Summary
Purpose of the Legislation This bill clarifies eligibility rules for certain Small Business Administration (SBA) loans and guarantees, ensuring that qualifying small businesses located in the United States can access these programs when at least 51 percent owned and controlled by U.S. citizens, nationals, or specific eligible non-citizens who are lawfully present and authorized to work in the country.
Key Provisions Outlined
- Defines "covered loan" to include SBA 7(a) loans, microloans, loans under title V of the Small Business Investment Act of 1958, and surety bond guarantees under part B of title IV of that Act.
- Defines "eligible individual" to cover certain non-citizens (including those granted asylum, admitted as refugees, valid nonimmigrants, lawful permanent residents on a conditional or unconditional basis, and recipients of deferred action under the 2012 DACA memorandum) as well as individuals whose principal residence is outside the United States and its territories.
- Requires a small business concern to be located in the United States and at least 51 percent owned and controlled by U.S. citizens or nationals, or by eligible individuals who are lawfully present and authorized to work in the United States at the time of application.
- Prohibits denial of loan eligibility solely because the business is owned by eligible individuals, provided the location and ownership thresholds are met.
- Includes a rule of construction stating that the SBA may not increase the 51 percent ownership requirement.
Significant Changes to Existing Law Introduced The Act builds on section 2(i) of the Small Business Act by explicitly listing additional immigration categories (such as DACA recipients) as eligible owners and by adding a provision covering individuals residing outside the United States, while maintaining the existing 51 percent ownership threshold and location requirement for covered loans.
Potential Impacts
- On government agencies: Provides clearer criteria for the SBA when reviewing loan applications under the listed programs.
- On citizens and residents: May expand access to SBA financing for small businesses with qualifying ownership structures involving lawfully present non-citizens.
- On international relations: Addresses ownership by individuals outside the United States while still requiring U.S. location and work authorization for eligibility.
Main Stakeholders Affected
- Small business concerns seeking SBA-backed financing.
- Individuals meeting the definition of "eligible individual," including certain non-citizens and those residing abroad.
- The Small Business Administration, which administers the covered loan programs.
Notable Legal, Constitutional, or Political Implications The legislation ties loan eligibility directly to immigration status and work authorization requirements, while explicitly preventing the SBA from raising the 51 percent ownership threshold through a rule of construction.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Velázquez, Nydia M. [D-NY-7]
Cosponsors (25)
Rep. Olszewski, Johnny [D-MD-2], Rep. Espaillat, Adriano [D-NY-13], Rep. Meng, Grace [D-NY-6], Rep. Min, Dave [D-CA-47], Rep. Chu, Judy [D-CA-28], Rep. Simon, Lateefah [D-CA-12], Rep. Clarke, Yvette D. [D-NY-9], Rep. Krishnamoorthi, Raja [D-IL-8], Rep. Cisneros, Gilbert Ray [D-CA-31], Rep. Latimer, George [D-NY-16], Rep. Thanedar, Shri [D-MI-13], Rep. McIver, LaMonica [D-NJ-10], Rep. McGarvey, Morgan [D-KY-3], Rep. Scholten, Hillary J. [D-MI-3], Rep. Tran, Derek [D-CA-45], Rep. Morrison, Kelly [D-MN-3], Rep. Pou, Nellie [D-NJ-9], Rep. Goldman, Daniel S. [D-NY-10], Rescom. Hernández, Pablo Jose [D-PR-At Large], Rep. Pallone, Frank [D-NJ-6], Rep. DeSaulnier, Mark [D-CA-10], Rep. Salinas, Andrea [D-OR-6], Rep. Craig, Angie [D-MN-2], Rep. Mannion, John W. [D-NY-22], Rep. McBride, Sarah [D-DE-At Large]
Recent Actions
- 2026-04-28: Referred to the House Committee on Small Business.
- 2026-04-28: Introduced in House
- 2026-04-28: Introduced in House
Bill Versions
- Investing in the American Dream Act — issued 2026-04-28 — PDF (4 pages)