Investing in the American Dream Act
- Sponsor
- Sen. Markey, Edward J. [D-MA]
- Committees
- Small Business and Entrepreneurship Committee (primary)
- Last action
- Apr 28, 2026
Bottom line
The bill broadens the pool of individuals who can own and control small businesses eligible for federal small business support programs, aiming to foster entrepreneurship among immigrant communities and potentially attract foreign investment.
What it actually does
This bill clarifies and expands eligibility for various Small Business Administration (SBA) loans and surety bond guarantees. It includes certain lawfully present aliens and individuals authorized to be employed in the United States, as well as individuals whose principal residence is outside the U.S., within the definition of "eligible individual." It mandates that small business concerns must be located in the U.S. and be at least 51% owned and controlled by U.S. citizens/nationals or these newly defined eligible individuals to qualify for covered loans.
Proponents argue
Supporters argue that this bill removes unnecessary barriers to entrepreneurship for lawfully present immigrants and other eligible individuals, allowing them to contribute more fully to the American economy. They contend it will stimulate job creation, economic growth, and innovation by expanding access to capital for a wider range of small business owners, aligning with the "American Dream" ethos.
Opponents contend
Opponents might argue that expanding eligibility to non-citizens, particularly those whose principal residence is outside the U.S., could divert limited federal resources away from U.S. citizens and permanent residents, or that it could create loopholes for foreign entities to access U.S. small business support. Concerns might also be raised about the potential for increased risk in loan portfolios or the fairness of using taxpayer funds for non-citizen-owned businesses.
The bill is very short and straightforward, making it highly accessible for a quick review by any interested reader.
Section 1
Short Title
This section establishes the official short title of the Act as the "Investing in the American Dream Act," providing a common name for referencing the legislation. This title is intended to convey the bill's purpose of fostering economic opportunity.
Supporters argue
Supporters would argue that a clear and aspirational short title helps communicate the bill's intent and garner public support by framing it around a widely recognized national ideal.
Critics contend
No specific opposition is typically raised against short titles, though critics might use the title to highlight perceived discrepancies between the bill's stated goals and its actual effects.
Tradeoffs
None apparent for the short title itself, as it primarily serves an organizational and communicative function.
Section 2(1)
Defines "Covered Loan"
This section specifies the types of small business support programs that are subject to the eligibility changes proposed by the bill. These include loans guaranteed under SBA's 7(a) program, microloans, loans guaranteed under Title V of the Small Business Investment Act of 1958, and surety bond guarantees from the SBA. This ensures the new eligibility rules apply consistently across key federal small business financial assistance programs.
Section 2(2)
Expands Definition of "Eligible Individual" for Loan Eligibility
This section significantly expands the definition of "eligible individual" to include various categories of aliens lawfully present in the U.S. (asylum grantees, refugees, nonimmigrants with unexpired stays, lawful permanent residents, DACA recipients). Notably, it also includes "an individual the principal residence of whom is outside the United States and its territories and possessions." This broadens who can own and control a small business to qualify for covered loans.
Section 3(a)
Establishes Core Eligibility for Covered Loans
This section sets two primary requirements for a small business concern to be eligible for a covered loan: it must be located in the United States, and it must be not less than 51 percent owned and controlled by either U.S. citizens/nationals or the newly defined "eligible individuals" (provided they are lawfully present and authorized to be employed in the U.S. at the time of application). This ensures that the businesses receiving support are U.S.-based while allowing for diverse ownership.
Section 3(b)
Prohibits Discrimination Against Eligible Individual-Owned Businesses
This section explicitly prohibits denying a small business concern eligibility for a covered loan solely because it is owned by "eligible individuals," provided the business meets the other requirements (U.S. location and 51% ownership by citizens/nationals or eligible individuals). This aims to prevent discrimination based on the expanded eligibility criteria, ensuring the intent of the bill is fully realized.
This clause includes individuals whose primary home is outside the United States and its territories and possessions within the definition of "eligible individual" for the purpose of owning and controlling a U.S.-based small business that can receive covered loans.
Section 2(2)(B)
Why it matters:While standard legislative practice for definitions, its broad implication for foreign ownership might be less immediately obvious than the specific immigration statuses, potentially obscuring its full impact.
Case for: Proponents would argue this attracts foreign direct investment and entrepreneurial talent to the U.S., fostering economic growth and job creation by allowing foreign residents to establish and grow businesses in the U.S. with SBA support.
Case against: Opponents would contend this provision could allow foreign entities or individuals with no direct U.S. tax obligations or long-term commitment to the U.S. economy to access federal small business loans, potentially diverting resources from domestic entrepreneurs and raising questions about accountability and national interest.
Estimated impact: Potentially significant, as it opens SBA programs to a global pool of entrepreneurs, though the actual uptake would depend on various economic and regulatory factors and the attractiveness of the U.S. market.