Changes to the SBA Loan Program Could Boost Retail Leasing

The Small Business Administration was established in 1953 to promote small business growth through financing, advocacy, training, and emergency relief. Its primary tool is the 7(a) loan program, which guarantees a portion of qualifying loans, allowing lenders to offer more favorable terms. The agency also provides tools to streamline loan origination and servicing for lenders. This week, the Trump administration introduced changes to the SBA loan application requirements. Since small businesses are the primary tenants in many retail real estate locations, these changes could soon affect retail leasing.

Several key changes were made to the SBA loan program—some expanding access and others adding restrictions. The most significant change is that borrowers must now verify their citizenship or permanent residency. While data is limited on how many foreign citizens apply for these loans, this requirement could reduce the number of eligible companies...