Edward Markey

SPRINGFIELD — In lockstep with the Trump administration’s hardline stance on immigration, the U.S. Small Business Administration earlier this year began restricting noncitizens, even those with green cards, from accessing low-interest loans and other assistance.

It’s a policy that frustrates entrepreneurs and creates a climate of suspicion that keeps immigrant businesspeople — even ones who have achieved citizenship — from seeking any kind of business assistance, according to entrepreneurs and advocates.

“You work hard to make that business grow,” said Peterson Dorvil, who came from Haiti five years ago and runs Harmony Entertainment Enterprises in Springfield. “This is another thing holding you back. You have to wait, and you do not know.”

Dorvil would use the money to expand his marketing business; so would his customers, many of whom, like him, are immigrant business owners. He creates videos, websites and photography from the shared office space of the Latino Economic Development Corp. at 20 Fort St.

His clients mainly are bakers, restaurateurs, food truck chefs and salons owners from Haiti and the Dominican Republic.

“We’re talking about creating American dreams,” said Andrew Melendez, founder and CEO of the Legacy Economic Development Corp., formerly the Latino Economic Development Corp. “They pay taxes. They own their business. It’s a big hurdle. It just hurts communities like Springfield and Holyoke and Lawrence.”

U.S. Sen. Edward Markey sent a letter to the SBA on Wednesday, complaining that the agency is threatening to move its Boston office out of the city and already has closed a Springfield branch office.

Democrat Markey — ranking minority member of the Senate Committee on Small Business and Entrepreneurship — and other lawmakers have spoken out against the restrictions on aid to immigrants, as well. Markey hosted a roundtable on the subject in Boston.

He’s facing a primary challenge in his reelection bid from U.S. Rep. Seth Moulton.

In announcing the restrictions in March, the SBA said it was keeping money out of the hands of illegal immigrants. The same announcement that detailed the new policy shift also said the SBA would relocate offices from places deemed “sanctuary cities,” such as Boston.

Raymond Lanza-Weil, president of Common Capital in Springfield, said he’s forbidden from using SBA resources to help a noncitizen, even by providing SBA-funded technical assistance.

He called the policy morally wrong.

“It’s antithetical to what we do,” Lanza-Weil said.

And not supported by the facts.

Common Capital’s loan portfolio totals $9 million, of which 10% is composed of immigrant-owned businesses, Lanza-Weil said. He said he has about a dozen immigrant-led businesses on his roster right now.

Immigrant borrowers have a stronger repayment history than the overall portfolio, he noted. Since 2020, 12% of Common Capital’s borrowers have failed to pay back the firm in full, but the rate was lower among our immigrant borrowers, at 8%.

Lanza-Weil said Common Capital has non-SBA resources to help.

But immigrants, and even members of racial minorities, are reluctant.

“They are not raising their hand for help the way they did two years ago,” Lanza-Weil said, “because of the climate of fear that’s been created.”

Melendez said small businesses are turning instead to high-interest loans offered by service providers. Or they are seeking financing informally in their community.

Without the SBA office in Springfield, Melendez said people, regardless of immigrant status, starting or expanding small businesses who are seeking business loans don’t know the first steps.

“What is happening is people are going straight to the banks,” he said. “The banks are not prepared to see them.”

He described it as jumping to step “C” when they should still be on step “A,” working with an expert on business plans and projections.

Dorvil said he’s working toward funding. But as he grows his business, he’s also planning to begin the steps toward becoming a citizen.