Small Business Administration to relocate 6 offices in so-called 'sanctuary cities'

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NEW YORK (AP) — The Small Business Administration said it will relocate six of its regional offices in so-called “sanctuary cities,” part of a broader Trump administration effort to crack down on cities that it deems have immigrant-friendly policies.

In a statement Thursday, SBA administrator Kelly Loeffler said offices in Atlanta, Boston, Chicago, Denver, New York City and Seattle will be relocated to “less costly, more accessible locations that better serve the small business community and comply with federal immigration law.”

No details were given about where the offices might be moving to.

There’s no legal definition for sanctuary city policies, but they generally limit cooperation by local law enforcement with federal immigration officers. Courts have repeatedly upheld the legality of sanctuary laws.

The announcement came a day after Republican members of Congress hammered four Democratic mayors Wednesday about their so-called sanctuary city policies, accusing them of endangering Americans and threatening to prosecute local officials.

The SBA was established in 1953 to offer resources to small businesses and helps administer small business and disaster recovery loans. It played a crucial role during the pandemic, helping distribute small business aid. It has at least one district office in each state, and some larger states, like California and Texas, have several. Offices provide counseling, training, and other resources that provide support for small business owners.

Separately, the Loeffler said SBA loans won't be eligible to businesses that have owners “in whole or in part” who aren't U.S. citizens. The SBA said in an email response to a query that it would make more details about that policy known “in coming days.”

The SBA doesn’t give out direct loans, except when they’re related to disasters, but it works with lenders to distribute loans to small businesses. The loans typically have better rates than traditional loans.