Investing in the American Dream Act

Clarified Loan Eligibility for Diverse Owners: The bill provides that a small business concern cannot be denied a covered loan simply because it is owned by "eligible individuals" (Section 3(b)). This ensures that those meeting the specific criteria for eligible individuals have a clearer path to loan eligibility (Section 2(2)).

Support for Specific Resident Groups: The definition of an "eligible individual" includes various groups such as those granted asylum, refugees, certain nonimmigrants whose authorized stay has not expired, and those admitted for permanent residence (Section 2(2)(A)). This allows these specific groups to meet the ownership requirements for a small business concern to qualify for a covered loan (Section 3(a)(2)(B)).

Inclusion of Individuals with Deferred Action: The bill specifically includes individuals granted deferred action under the June 15, 2012, Department of Homeland Security memorandum as "eligible individuals" (Section 2(2)(A)(v)). This provides a path for these individuals to be part of the 51 percent ownership required for a small business concern to access covered loans (Section 3(a)(2)).

Strict Ownership and Presence Requirements: To be eligible for a covered loan, a small business concern must be at least 51 percent owned and controlled by U.S. citizens, nationals, or eligible individuals who are both lawfully present and authorized to be employed in the United States (Section 3(a)(2)).

Limited Scope of Authority: The Act includes a rule of construction stating that it does not give the Small Business Administration the authority to increase the percentage requirement for ownership (Section 3(c)).