There is nothing like getting off at your Metro stop and being greeted by the urban and international metropolis that is Washington, D.C. Everywhere you turn you see the influence of immigrants from countries all across the world– from the aroma of a warm Ethiopian coffee to the mellow taste of a bowl of Vietnamese pho. These businesses have become staples in our cities and are vital contributors to the American economy.
Immigrant-owned businesses create jobs, increase cultural diversity within cities and serve as a force of economic prosperity throughout the United States. According to a 2024 report from the American Immigration Council, roughly 46% of all Fortune 500 companies were founded by immigrants or children of immigrant entrepreneurs. These communities make up a large portion of America’s small businesses and are integral to the health of our nation’s economy.
Despite their importance within American society, it has become increasingly difficult for these immigrant-run small businesses to thrive due to current anti-immigrant policy changes at the federal level. Immigrant entrepreneurs are finding it difficult to overcome administrative obstacles, such as the stringent enforcement of visa requirements and having to navigate through new national and state business licensing changes.
These challenges may soon become even harder to overcome after the House of Representatives passed H.R. 2966 (also known as the American Entrepreneurs First Act of 2025) this past Friday. The bill requires those seeking Small Business Administration (SBA) and 504 loans to present proof of their American citizenship or permanent legal status. These capital programs are currently available only to companies with at least 51% American ownership. The bill now available for Senate consideration would bar any business with even a minority ownership share held by someone without permanent legal status or American citizenship.
The passage of this problematic bill will effectively prohibit immigrants with temporary protected status, student visas, DACA recipients and other non-citizens from receiving the necessary funding to realize their entrepreneurial dreams.
“Many immigrant entrepreneurs who contribute to their community and local economy through their small business are now fearing deportation,” said Lauren Wolters, a Policy Associate at NCRC. “This new bill would increase fear in our nation’s immigrant communities and likely result in the closure of many of their businesses.”
Immigrant-owned small businesses employ millions of Americans, which are a vital source of economic growth and contribute billions to the American economy. Bills that aim to restrict immigrant small business creation and growth, such as H.R. 2966, would cause irreparable harm to an integral group of this country’s workforce that has been beneficial both economically and culturally for many years. Immigrant-owned small businesses have left an indelible mark on American society and it is imperative that their right to contribute to the economic health and cultural fabric of this nation remain intact.
“Immigrants are not just workers filling gaps in our economy. They are innovators, caregivers, community leaders, and family members,” said Ai-jen Poo, director of the National Domestic Workers Alliance. “Our economy and our society are deeply rooted in the labor, love, and sacrifices of immigrant communities. To value immigrants is to value the future of our nation.”
Peter Chamoun is an Intern with NCRC’s Marketing and Development team.
Photo credit: Anton Ivanov via Pexels.
