Contrasting Visions: Trump’s SBA vs. Harris’s Blueprint for Empowering Black Entrepreneurs

Industry analysts are questioning whether recent changes to the SBA's lending policies prioritize safety or seek to erase the legacy of Joe Biden. Reports from Forbes highlight that Black-owned businesses are losing SBA-backed deals as new regulations, introduced on June 1, toughen the requirements initiated during Trump's presidency. A significant adjustment mandates that businesses must now be 100% owned by U.S. citizens, who must be permanent residents for a minimum of six months. The SBA asserts the changes rectify "disastrous Biden-era underwriting standards," citing tighter credit checks and more stringent down payment regulations. The 7(a) and 504 loan programs, critical for small businesses, now face enhanced restrictions. Eric Pacifici of SMB Law Group warns that these shifts may hinder beneficial opportunities for entrepreneurs rather than support economic growth.