I struggled to get clear answers about Lineage disaster loans. Imagine what small business owners are facing

I got something wrong in a story last week. Correcting that mistake led me down a rabbit hole and raised a bigger issue: The process for immigrants who are lawful permanent residents to connect with resources meant to serve them is so confusing, even experts struggled to explain it. 

While reporting on federal disaster loans available for businesses affected by the Lineage warehouse, I incorrectly stated that recent changes by the Trump administration made immigrants, including lawful permanent residents with green cards, ineligible to apply for the U.S. Small Business Administration’s Economic Injury Disaster Loan program. In fact, green-card holders are eligible for disaster loans, even though they’ve been barred from other SBA-backed loans 

But to confirm that and get the correct information out there, I had to review multiple SBA documents, and speak with an SBA public affairs specialist — who had to dig to find out the answer. People who work on providing resources to small business owners on the Eastside didn’t know the answers, and a lawyer with experience in small business development told me she had trouble figuring it all out as well.  

If it took me hours of calls, emails and a visit to a business resource center, what does that mean for a small business owner trying to get crucial information while recovering from a disaster, especially in working-class immigrant communities like Boyle Heights and East LA? 

What happened? 

When I was conducting my research on the recent policy changes regarding SBA loans, I found a March memo from the agency that states, “Small business owners applying for any SBA loan program must be U.S. citizens or U.S. nationals with their principal residence in the United States,” emphasis on the “any.”

The policy changes, according to staff memos, are in compliance with President Donald Trump’s Executive Order 14159, “Protecting the American People Against Invasion,” signed in January 2025 and require that “100% of all direct and/or indirect owners of a small business applicant be U.S. Citizens or U.S. Nationals.”

Two days after the story was published, I got word that it might not be true for disaster loans. That’s when I got in touch with Juan Lezama, a public affairs specialist for the SBA Office of Disaster Recovery and Resilience, who clarified the fact. 

“In general for SBA loans, an applicant must be a U.S. citizen. 
However, for a disaster loan, and in the case of the Boyle Heights incident … a person must be a U.S. citizen or a legal permanent resident to apply,” Lezama said. 

In my quest for answers, I walked down to the East LA/Boyle Heights Business Source Center to ask SBA representatives in person about the eligibility requirements. One person told me they weren’t able to speak on behalf of the SBA but said that directives were changing all the time under the Trump administration. 

About an hour later, Lezama called me back to ask if we had already published the information that he’d given me. We had. He said he was reviewing conflicting internal memos from the agency and needed to conduct further research to confirm that the information he gave me was correct. 

Within a few hours, Lezama said he was confident in his initial response, but I was curious to know whether any information on the exception could be found online.

Lezama sent a policy notice about the revision and a flyer that outlines what is needed to apply for an EIDL — a government ID and business employment identification number, a recent federal income tax return, financial and insurance information — but nothing explicitly outlining the exemption. 

So how are people supposed to know the rules, I wondered?

Legal experts weigh in

An attorney specializing in small business development at Bet Tzedek, a nonprofit law firm in Los Angeles, told me that they hadn’t seen changes like this to the SBA in their 15 years of experience. They added that clear information on who qualifies for federal disaster loans was also difficult for them to find. 

The changes by the SBA administration can also create fear among immigrant communities, even for people who are lawful permanent residents, they said.

“I’m an attorney … I cannot imagine for someone that just went through all of this, where it’s not clear whether or not they can apply and then plus everything that we’ve been living in the community in LA with the [Immigration and Customs Enforcement] raids,” they said. The attorney asked not to be named because of immigration concerns.

“It’s a very scary time because things will change quickly … I can see how for our community, it can be scary even trying to ask those questions on your own.” 

The attorney noted that stricter citizenship verification is being applied to disaster loans as well. A July 20, 2026, Federal Register notice indicates that SBA is revising disaster business loan applications to “reflect recent regulatory updates and to ensure alignment with Executive Order 14168,” and has added a Social Security consent requirement “to ensure loans are only issued to eligible, real individuals or authorized business owners and to prevent fraudulent applications from being processed.”

Where can people get information?

The SBA did not provide information on where residents impacted by a disaster can find clear information online about the citizenship requirements for EIDLs. 

Lezama said that residents can verify their eligibility after starting the online application by calling the SBA Disaster Assistance Customer Service center at (800) 659-2955, emailing disastercustomerservice@sba.gov or going to a local business center to inquire in person. 

The agency has spoken to multiple businesses affected by the Lineage fire in person to provide information about the application, including citizenship requirements, Lezama said. 

According to Lezama, SBA representatives will be sharing information at upcoming community events and have scheduled two virtual workshops in partnership with the economic justice organization New Economics for Women.

The first meeting will be held in English on Sept. 17 and then in Spanish on Sept. 24. Those interested in attending can register for the Sept. 17 meeting here and for the Sept. 24 meeting here.