New US Legislation That Could Limit Australian Expat Loan Access
What Australian Expats Should Know About the U.S. SBA Loan Changes: H.R. 2966 and Its Impact on Small Business Loan Eligibility
Why This Matters for Australian Expats
For Australian expatriates living and working in the United States, accessing business finance can be a vital step toward building long-term wealth and achieving professional independence abroad. Whether you’re launching a small venture or investing in U.S.-based property and infrastructure, programs like the SBA 7(a) and 504 loan schemes have offered a pathway to affordable business funding — including for lawful non-citizen residents.
However, the recent passage of the American Entrepreneurs First Act of 2025 (H.R. 2966) through the U.S. House of Representatives signals a significant shift in how these programs may operate going forward. If you’re an Australian expat with U.S.-based business interests or considering investing through a U.S. entity, these changes could affect your eligibility for SBA-backed finance.
A Quick Overview: SBA 7(a) and 504 Loan Programs
The SBA 7(a) Loan Program is the most flexible and widely used SBA loan, covering everything from working capital and business expansion to commercial property purchases. In contrast, the 504 Loan Program is more targeted, offering long-term, fixed-rate funding for capital-intensive investments like real estate and equipment.
Prior to H.R. 2966, these loans were available not only to U.S. citizens and permanent residents but also to:
- Refugees and asylees
- DACA recipients
- Individuals with Temporary Protected Status (TPS)
- Foreign nationals with valid work visas (e.g., E-2, L-1, H-1B)
- Foreign-owned businesses with U.S.-based operations and legal presence
For Australian expats, especially those on E-2 Investor or L-1 Business Transfer visas, this inclusivity created valuable funding opportunities.
What H.R. 2966 Proposes to Change
The American Entrepreneurs First Act of 2025 aims to restrict SBA loan eligibility to U.S. citizens, nationals, and lawful permanent residents (Green Card holders). Under the bill:
- All applicants and beneficial owners of businesses seeking SBA-backed loans must certify they fall into one of these approved residency categories.
- Excluded groups include:
- Asylees
- Refugees
- DACA recipients
- Temporary visa holders
- Individuals without lawful U.S. immigration status
- Business entities will also be subject to scrutiny, and all beneficial owners must meet the new criteria.
- Lenders will be required to implement compliance measures within 1–2 years, depending on their loan volume.
What This Means for Australian Expats
Regarding Australians on non-immigrant visas, such as the E-2, L-1, or H-1B:
- You may no longer be eligible for SBA loans under this legislation, even if you meet all other business and financial criteria.
- If your business relies on or anticipates needing SBA funding, you may need to consider alternative financing options or adjust your ownership structure (e.g., including a U.S. citizen or permanent resident as a majority owner, though this introduces other legal and tax considerations).
Those who already hold U.S. permanent residency (Green Card holders), eligibility should remain unaffected.
For expats investing via U.S. companies:
- You will need to carefully review ownership and beneficiary arrangements to ensure compliance.
- Holding business interests through an Australian family trust or foreign entity may further complicate matters, particularly if ownership transparency becomes an audit focus for SBA lenders.
What You Can Do Next
If you are an Australian expat living in the U.S. – or considering business or property investment there – it’s essential to:
- Review your visa status and ownership structure
- Seek specialist advice on U.S. and Australian tax implications for business ownership and distributions
- Explore non-SBA lending options, such as private funding or local bank financing tailored to foreign nationals
- Monitor the bill’s progress through the U.S. Senate, where it is currently under review
Final Thoughts
Legislative changes like H.R. 2966 highlight the importance of staying informed and maintaining flexible, well-advised financial structures as an Australian expat. While the SBA loan programs have historically been inclusive, the proposed shift may limit access for those without U.S. citizenship or permanent residency.
At the time of writing, H.R. 2966 has passed the House of Representatives but has not yet been considered by the Senate. It is not yet law, and its final form – or whether it progresses at all – remains to be seen. We’ll be keeping a close eye on how this develops and will continue to provide updates relevant to Australian expats with U.S.-based interests.
If you’re unsure how this may affect your business plans or financing eligibility, speak with a qualified expat financial adviser to understand your options and protect your long-term strategy.
Contact Us
Contact us to arrange a consultation for personalised guidance tailored to your circumstances. At Atlas Wealth Group, we specialise in supporting Australian expats with cross-border tax planning, superannuation, and wealth management.
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Disclaimer: This article is intended for informational purposes only and does not constitute legal or financial advice. Individuals should consult licensed professionals when seeking guidance regarding their financial circumstances.