SBA to Verify Citizenship, DOB, Adds Automatic Fraud Alerts

April 15, 2025

Bob Coleman
Founder & Publisher

SBA Hot Topic Tuesday — SBA to Verify Citizenship, DOB, Adds Automatic Fraud Alerts

Says SBA Administrator Kelly Loeffler. “With the help of DOGE, the SBA has already made a number of common-sense reforms to prevent the rampant fraud we’ve seen over the last four years. Unlike the previous Administration, we respect the American taxpayer and are dedicated to ensuring every dollar entrusted to this agency goes to support eligible, legitimate small businesses. With these simple fraud prevention measures, we will end the abuse of our loan programs – with stronger safeguards to hold bad actors accountable.”

Key changes to combat fraud within the SBA’s loan programs include:

• Citizenship Verification: All SBA loan applications now include a citizenship verification provision to ensure only legal, eligible applicants can access SBA programs. Lenders are required to confirm that applicant businesses are not owned in whole or in part by an illegal alien, consistent with President Trump’s executive order ending the taxpayer subsidization of open borders.
• Date of Birth Verification: All SBA loan applications now include a process to verify applicant age and date of birth. This provision will mitigate fraud stemming from applicants using an identity other than their own, including those of children or the deceased.
• Automatic Fraud Alerts: SBA’s date of birth verification process will automatically flag any applicant claiming to be younger than 18 or older than 115 years of age.