The U.S. Small Business Administration (SBA) will relocate its regional offices from Denver and five other major “sanctuary cities” due to their noncompliance with federal immigration laws. Regions affected include Atlanta, Boston, Chicago, Denver, New York City, and Seattle. The decision follows a congressional testimony from multiple mayors regarding their immigration policies. Rep. Jeff Crank suggested moving the Denver office to Colorado Springs. The SBA also announced new citizenship verification requirements, ensuring businesses applying for loans are primarily owned by U.S. citizens or legal residents, tightening eligibility criteria in light of a previous loan audit revealing illegal ownership.
The U.S. Small Business Administration announced on Thursday that it will relocate its regional offices from Denver and five other major “sanctuary cities” due to their lack of cooperation with U.S. Immigration and Customs Enforcement.
“In the coming months, the regional offices in Atlanta, Boston, Chicago, Denver, New York City, and Seattle will be moved to more affordable and accessible locations that better attend to the needs of the small business community while adhering to federal immigration law,” the SBA stated in a press release.
This announcement followed testimony before Congress from Denver Mayor Mike Johnston, Boston Mayor Michelle Wu, Chicago Mayor Brandon Johnson, and New York City Mayor Eric Adams, who collectively spoke for six hours about their respective views on federal deportation efforts.
“To accurately depict the impact immigrants have in America, we need to share the complete story,” Johnston stated in his opening remarks to the committee. “The reality is that newcomers to this country contribute positively and negatively, just like everyone else.”
Denver hosts the SBA’s Region VIII, which encompasses Colorado, Wyoming, Montana, Utah, North Dakota, and South Dakota. The Colorado District Office, which was established in 1953, is located in the federally-owned U.S. Customs House at 721 19th St.
No details have been disclosed regarding the new location for the regional office, but Rep. Jeff Crank, a Republican representing southern Colorado, reached out to SBA Administrator Kelly Loeffler on February 25, suggesting that the regional headquarters be moved to Colorado Springs.
“It is crucial for SBA offices to be situated not in major cities — dominated by large companies and unaccountable government — but in areas where safety is prioritized and local economies are driven by innovation,” Crank wrote to Loeffler.
Furthermore, the SBA announced on Thursday it would introduce a citizenship verification measure to restrict access to its programs. The previous requirement mandated that a business must be at least 51% owned by a U.S. citizen or a lawful permanent resident to be eligible for an SBA loan.
“Our focus will return to empowering legal, eligible business owners throughout the United States – in collaboration with municipalities that share this administration’s commitment to secure borders and safe communities,” Loeffler stated in the release.
Lenders will now need to verify that businesses are not wholly or partially owned by individuals classified as “illegal aliens,” as defined by U.S. law, which includes those who enter the U.S. in unauthorized manners or who provide false information to gain entry.
The SBA highlighted that it reversed a $783,000 loan approved last summer for a business that was 49% owned by an individual residing in the country illegally following an audit. However, it did not provide data on the percentage of previous SBA loans to businesses that would not meet the new eligibility criteria.
Former SBA administrator Isabel Casillas Guzman mentioned in her End of Term report from January that the SBA had distributed $1.2 trillion in loans and grants to over 13 million recipients during the pandemic and recovery phase, with approximately $450 billion of that amount disbursed during the Biden administration.
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