The U.S. Small Business Administration will close and relocate its office in the Loop, as well as five others in sanctuary cities across the country, the agency announced on Thursday.
In coming months, the SBA regional offices in Chicago, Atlanta, Boston, Chicago, Denver, New York City and Seattle “will be moved to less costly, more accessible locations that better serve the small business community and comply with federal immigration law,” the agency said in a news release. The SBA’s Springfield office was not included in the list.
An agency spokesperson said Thursday that the SBA’s services will not be affected by the relocation of its Chicago office.
The closures punish cities that don’t comply with the U.S. Immigration and Customs Enforcement’s efforts to detain immigrants, as President Donald Trump urges mass deportations and tighter borders.
It also comes one day after Mayor Brandon Johnson testified on Capitol Hill before the House Oversight and Government Reform committee over Chicago’s sanctuary city policy, along with the mayors of New York, Boston and Denver.
The agency will also implement a new policy requiring SBA loan applicants to verify their U.S. citizenship.
“Under President Trump, the SBA is committed to putting American citizens first again — starting by ensuring that zero taxpayer dollars go to fund illegal aliens,” SBA Administrator Kelly Loeffler said in a news release.
“Lenders will be 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,” the SBA said.
The agency “will cut off access to loans for illegal aliens and relocate our regional offices out of sanctuary cities that reward criminal behavior,” Loeffler said.
The SBA does not issue financing to small businesses directly; people typically apply for SBA-backed loans through participating banks and lenders.
But business advocates say closing the SBA’s Chicago office, 332 S. Michigan Ave., harms small businesses that need support.
“Relocating the Chicago office will impact businesses that rely on its services. Small businesses should not be harmed by fights they cannot control,” said Elliot Richardson, president of Chicago-based Small Business Advocacy Council. “Policymakers should work through their disagreements without hurting the small businesses that drive our economy, create jobs and support local communities.”
Tasha Brown, Illinois director of advocacy group Small Business Majority, said: “With over 100,000 licensed businesses in Chicago, the city is a hub of small business activity. Closing the Chicago office of the SBA would likely make it more difficult for Chicago’s robust entrepreneurial community to access valuable resources. With that in mind, we urge SBA to reconsider its plan to shutter offices in or near major cities like Chicago.”
‘A lifeline for small businesses’
Kilwins franchise owner Jacqueline “Jackie” Jackson has received SBA loans and participated in events such as Zoom sessions to support small businesses. She operates seven sweets shops in the Chicago area.
In 2024, the SBA Great Lakes region named her the Illinois small-business person of the year. The agency also featured her in a national campaign that drove “significant business” to her stores, she said.
“The SBA has not only been a lifeline for small businesses like mine, but also a trusted partner in navigating the challenges of entrepreneurship,” Jackson said. “During the pandemic, the SBA provided hope when businesses were struggling to survive. Their staff served as mentors, guiding me through challenges and offering invaluable resources.”
“I always encourage other entrepreneurs to seek SBA assistance,” she said. “The closing of these offices is heartbreaking — not just for me, but for countless small businesses that rely on their guidance, advocacy and resources.”
Her daughter, Janel, participated in an SBA training program called Thrive.
“Since graduating, she has soared with the knowledge and resources gained,” Jackson said. “She is now a stronger, more strategic businesswoman because of the SBA’s investment in her development.”
Jackson added, “Losing these offices is more than just an administrative change — it is a significant blow to small businesses, emerging entrepreneurs, and the communities that depend on them.”