A joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Small Business Administration relating to "Citizenship and Residency Requirements and Recission of Procedural Notice 5000-872050" and "Revised Applicant Ownership, Citizenship, and Residency Requirements for 7(a) and 504 Loans".

119th Congress Introduced by Ed Markey

Congress disapproves and nullifies an SBA rule tightening citizenship, residency, and ownership requirements for 7(a) and 504 loans.

Introduced in Senate

Summary of SJRES 202 (119th Congress)

Purpose and intent

This joint resolution provides for congressional disapproval under the legislative mechanism in chapter 8 of title 5 (the Congressional Review Act) of a specific Small Business Administration (SBA) rule.

The rule in question concerns two SBA policies:

“Citizenship and Residency Requirements and Recission of Procedural Notice 5000-872050”
“Revised Applicant Ownership, Citizenship, and Residency Requirements for 7(a) and 504 Loans”

The resolution asserts that Congress disapproves the SBA rule, effectively nullifying it, and directs that the rule has no force or effect.

Key provisions and changes

The resolution states Congress’ disapproval of the SBA rule as described above.

It references the dates the rule was issued:

Procedural Notice 5000-872050: February 2, 2026
Revised Applicant Ownership, Citizenship, and Residency Requirements for 7(a) and 504 Loans: February 11, 2026

The disapproval is based on a Government Accountability Office (GAO) determination (in a letter of opinion dated July 1, 2026) classifying the rule as a rule.

The GAO letter of opinion was printed in the Congressional Record on July 14, 2026 (pages S3929–S3931).

The resolution, if enacted, asserts that the rule “shall have no force or effect.”

Who is affected

The primary impact is on the SBA’s administrative rules governing:

Citizenship and residency requirements for SBA loan programs
Ownership, citizenship, and residency requirements for applicants for 7(a) and 504 loan programs

By disapproving the rule, the changes proposed by the two notices would not take effect; existing rules would remain in force unless superseded by other law or rulemaking.

Procedural and timeline aspects

Introduced in the Senate by Senator Markey (with a co-sponsor noted) and referred to the Committee on Small Business and Entrepreneurship.

Under the Congressional Review Act, if a joint resolution disapproving a rule is enacted by both chambers and signed (if required) or otherwise becomes law, the rule cannot take effect and would be nullified.

The timeline referenced in the bill includes:

February 2, 2026: Issuance of Procedural Notice 5000-872050
February 11, 2026: Issuance of the revised ownership/citizenship/residency requirements for 7(a) and 504 loans
July 1, 2026: GAO opinion identifying the rule as a rule
July 14, 2026: GAO opinion printed in the Congressional Record

The action history shows the bill was read twice in the Senate and referred to the Committee on Small Business and Entrepreneurship on July 23, 2026.

Notes

The bill does not propose alternative policy changes; it seeks to disapprove the SBA rule and negate its effect.

The summary reflects the narrow objective: use of the Congressional Review Act to block the two related SBA rule changes concerning eligibility and ownership/citizenship/residency criteria for SBA loan programs.