US Green Card Holder Changes 2026: SBA Loans Banned, Biometrics Mandatory, and More Background Checks

Published: 2026-02-26T21:00+05:30 (IST)Xavio

Green card holders face major 2026 changes: biometrics, SBA loan bans, and stricter vetting.

2026 is shaping up to be a pivotal year for U.S. green card holders (Lawful Permanent Residents – LPRs), with several significant policy shifts from the Department of Homeland Security (DHS), U.S. Citizenship and Immigration Services (USCIS), and related agencies. These changes — driven by a renewed focus on national security, fraud prevention, and resource allocation — could impact everything from business financing and international travel to renewals and benefit applications.

From SBA loan restrictions to mandatory biometrics and expanded vetting for high-risk countries, here are the five major changes for green card holders in 2026. This guide breaks down each development, its implications, and practical advice for navigating the new landscape.

1. SBA Loan Restrictions for Green Card Holders (Effective March 1, 2026)

One of the most direct financial impacts on green card holders in 2026 is the ban on Small Business Administration (SBA) loans for ventures where LPRs are part-owners. Announced in late 2025 and effective March 1, 2026, this rule stems from tighter eligibility criteria under the SBA’s 7(a) and 504 loan programs.

• Key Details: Green card holders are no longer considered "eligible non-citizens" for SBA-backed loans if they hold equity in the business. Previously, LPRs could access these low-interest loans (up to $5 million) for starting or expanding small businesses. Now, only U.S. citizens or certain qualified non-citizens (e.g., refugees) can qualify as owners.

• Why the Change? The SBA cited national security concerns and a push to prioritize U.S. citizen entrepreneurs amid rising immigration scrutiny. This aligns with broader Trump-era policies revived in 2025 to limit federal benefits for non-citizens.

• Impact on Green Card Holders: Thousands of LPR entrepreneurs — especially in tech startups, retail, and hospitality — may face funding gaps. Alternatives like private bank loans or venture capital exist, but often at higher rates. Those with existing SBA loans are grandfathered but cannot refinance or expand under the program.

• Practical Advice: If you're a green card holder with business plans, accelerate applications before March 1, 2026. Consult an SBA-certified lender or attorney to explore state-level grants or non-SBA options like microlending programs.

2. Mandatory Biometric Entry-Exit System for All Non-Citizens, Including Green Card Holders

Effective December 2025 but fully enforced in 2026, the biometric entry-exit system requires all non-U.S. citizens — including green card holders — to submit fingerprints, facial scans, or iris data when entering or exiting the country. This expands on the 2016 pilot programs and is now mandatory at all major airports, seaports, and land borders.

• Key Details: Green card holders must comply with biometrics during re-entry, even after short trips. The system tracks overstays, abandons residency claims, and flags security risks in real-time. Failure to comply can lead to entry denial or residency revocation.

• Why the Change? Mandated by Congress in 1996 but delayed for decades, the 2026 rollout aims to close loopholes in tracking non-citizen movements and reduce fraud. DHS estimates it will affect 10 million+ green card holders annually.

• Impact on Green Card Holders: Frequent travelers may experience longer wait times at borders (5–10 extra minutes per scan). Those with extended absences (180+ days) risk abandonment proceedings if biometrics show patterns of non-residency. It also strengthens USCIS's ability to deny naturalization for insufficient U.S. ties.

• Practical Advice: Always carry your green card and proof of U.S. residency (utility bills, tax returns) when traveling. Enroll in Global Entry or SENTRI for faster lanes (biometrics integrated).

  

  Mandatory biometric scans now required for green card holders entering and exiting the US in 2026.

3. Expanded Background Checks & Country-Specific Vetting for Benefit Renewals

USCIS's new policy alert from November 2025, effective immediately in 2026, introduces country-specific factors as "significant negative elements" in adjudicating immigration benefits — including green card renewals (I-90), removal of conditions (I-751), and naturalization (N-400).

• Key Details: Factors from 19 "high-risk" countries (e.g., Afghanistan, Iran, Syria, Venezuela) — such as insufficient vetting information or national security concerns — will weigh heavily against approvals. This applies to green card holders from these countries seeking renewals or extensions.

• Why the Change? Part of Presidential Proclamation 10949 (2025), this enhances screening to "protect national security." It expands on 2016 Obama-era rules but with stricter application.

• Impact on Green Card Holders: LPRs from listed countries may face more RFEs (Requests for Evidence), longer processing (6–12+ months for I-90), higher denial rates, or mandatory interviews. This could affect ~500,000 green card holders, per USCIS estimates.

• Practical Advice: Prepare strong evidence of U.S. ties (employment, property, family). Work with an immigration attorney early, especially if your country is flagged.

4. Agency olds and Full Reviews of Approved Benefits

A December 2025 USCIS policy memorandum places holds on all pending benefit requests and triggers reviews of approved benefits for citizens of the 19 high-risk countries who entered on or after January 20, 2021. This directly impacts green card holders in renewal or adjustment processes.

• Key Details: Holds apply to I-485 (adjustment to green card), I-765 (EAD), I-131 (Advance Parole), and more. Reviews could revoke previously approved green cards if new security concerns arise.

• Why the Change? To re-vet entries during the Biden administration, citing "insufficient screening." This is part of a broader "pause and review" initiative.

• Impact on Green Card Holders: Thousands may see indefinite delays on renewals or naturalization. Revocations could lead to deportation proceedings for affected LPRs.

• Practical Advice: Monitor your case status on USCIS.gov. If held, file a mandamus lawsuit if delays exceed reasonable times (e.g., 1 year+). Build a strong file with proof of continuous U.S. residency.

5. Public Charge Rule Updates & Stricter Benefit Use Scrutiny

The public charge inadmissibility rule, revived and strengthened in 2025, sees full implementation in 2026 with expanded definitions of "public benefits" that can jeopardize green card renewals or naturalization.

• Key Details: Receipt of means-tested benefits (Medicaid, SNAP, TANF, housing vouchers) for 12+ months in a 36-month period triggers public charge findings. This now includes more state/local programs and applies retroactively.

• Why the Change? To discourage benefit use among LPRs, aligning with 2016–2020 Trump policies. USCIS estimates it will affect 100,000+ green card holders annually.

• Impact on Green Card Holders: Those relying on public assistance risk denials on I-90 renewals or N-400 naturalization. This disproportionately affects low-income families, elderly LPRs, and disabled residents.

• Practical Advice: Avoid non-emergency benefits if possible. Document private insurance and self-sufficiency. Seek legal aid from organizations like NILC or ACLU if affected.

Broader Implications & Outlook for Green Card Holders in 2026

These five changes reflect a broader trend toward stricter enforcement and reduced flexibility for green card holders — part of the Trump administration's "Making America Safe Again" agenda. While not as dramatic as deportation waves, they introduce new uncertainties, costs, and barriers to full integration.

For many LPRs, the path to citizenship (N-400) becomes more urgent but also more challenging due to backlogs and vetting. Overall, 2026 could see a 15–20% increase in denial rates for renewals and naturalization, per USCIS projections.

If you're a green card holder, proactive planning is key: renew early, maintain strong U.S. ties, and consult certified immigration attorneys.

For the official USCIS policy memos, fee schedules, and application forms, visit the U.S. Citizenship and Immigration Services Policy Manual page.

For more on U.S. immigration trends, including visa bulletin updates and work permit changes, explore our dedicated U.S. immigration section.