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Marketplace All-in-One

A change to small business loans for immigrants

04 Feb 2026

Transcription

Transcript generated automatically by AI and may contain errors.

Chapter 1: What changes are being made to small business loans for immigrants?

1.499 - 20.663 David Brancaccio

Immigrants are much more likely to start a business in the U.S. than native-born people, but many will no longer be able to get a government business loan. I'm David Brancaccio in Los Angeles. The Small Business Administration will no longer allow green card holders, lawful permanent residents, to apply for its business loans. This takes effect next month.

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21.024 - 23.507 David Brancaccio

Marketplace's Nancy Marshall-Genzer has details.

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23.74 - 43.943 Nancy Marshall-Genzer

The Small Business Administration says a popular loan program will now only be open to firms owned by U.S. citizens or nationals whose principal residence is in the U.S. or its territories. This program doesn't lend money directly to businesses. It provides loan guarantees to lenders. And the loans are usually cheaper than traditional borrowing.

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43.923 - 61.965 Nancy Marshall-Genzer

The new SBA policy gets rid of an exception the agency granted just last December that allowed businesses to apply for the loans if up to 5% of their owners were non-citizens or U.S. citizens living abroad. Now, green card holders with permanent residency will not qualify for these loans.

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Chapter 2: How will the new SBA policy affect green card holders?

61.945 - 84.662 Nancy Marshall-Genzer

The SBA says it's committed to driving economic growth and job creation for American citizens, but the small business advocacy group Small Business Majority says the new policy will, quote, limit the growth of small businesses and jobs throughout the United States, adding that immigrants are twice as likely to start a business as native-born Americans. I'm Nancy Marshall-Genzer for Marketplace.

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85.182 - 106.583 David Brancaccio

Now to the tech stocks losing nearly $300 billion in aggregate value yesterday on the realization that artificial intelligence can replace not just human workers but whole business models. This after Anthropic released an evolved version of its AI that can follow through on tasks like vetting a legal contract or booking a business trip start to finish.

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106.563 - 117.956 David Brancaccio

Stock in companies from Thomson Reuters that helps law firms to Salesforce to Expedia Travel fell hard yesterday. I spoke to Susan Schmidt, Portfolio Manager at Exchange Capital Resources.

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118.456 - 133.313 Susan Schmidt

We've seen this pressure in software stocks already as AI has increasingly become a focus for investors. But now you are really starting to see how AI can go in and replace entire functions of people in a firm.

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133.445 - 148.095 David Brancaccio

We also have this weak payroll report today. Forecasters are expecting more than 40,000 new jobs created. What we got was 22,000 for the month of January. And ADP, the private sector survey, is what we're going to have.

148.632 - 162.044 Susan Schmidt

That is what you get for this week because the government, once again on partial shutdown, doesn't have official data. That's not going to come out until next week. So investors will use that ADP data as their crutch trying to figure out what's going on with the job market this week.

Chapter 3: What impact does the SBA policy have on small business growth?

162.184 - 177.998 Susan Schmidt

22,000 jobs, half of what was expected. The biggest loss there came, interestingly, in professional business services. So again, showing hesitancy to hire in some of these roles because CEOs don't know what AI is going to be able to bring to their businesses.

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191.242 - 211.808 David Brancaccio

Thank you. Managing household finances, retirement savings, insurance, credit cards, day-to-day bills, it's hard enough under the best of circumstances, but with the increased prevalence of dementia in an aging population, there is a lot of worry about money safety. Research is sobering.

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211.888 - 230.995 David Brancaccio

The risks of poor judgment, costly mistakes, neglect, and vulnerability to financial predators rise sharply with age. I'm joined now by Marketplace's Senior Economics Contributor, Chris Farrell. Hey, Chris. Good morning, David. Americans live longer. I mean, how many times do I say that in a month? But what's the prevalence of dementia?

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231.395 - 236.662 Chris Farrell

OK, so to be really clear here, David, not every older adult develops dementia. I mean, far from it.

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Chapter 4: How is AI influencing the job market and business models?

237.083 - 261.201 Chris Farrell

But the evidence is overwhelming that the risk of dementia rises with age. For instance, there was a recent study. It's from NYU Grossman School of Medicine and Johns Hopkins Bloomberg School of Public Health. And the scholars estimate that the odds of developing dementia reach 4 percent by age 75 and 20 percent by age 85. And most of the risk of dementia comes after 85 years of age.

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261.662 - 271.941 David Brancaccio

All right. One in five people by 85. And for that subset, the chances for money mistakes or financial exploitation rise. You have some numbers?

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271.921 - 291.972 Chris Farrell

There's this whole cottage industry of researchers, I mean, from all these multiple disciplines, and they found that finances deteriorate among those who are dealing with cognitive decline and eventually dementia. And the economic cost to their wealth, it often shows up, David, six to eight years before dementia symptoms are obvious or there's a clinical diagnosis.

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291.952 - 304.927 Chris Farrell

So this recently published study by four researchers, and it builds on earlier studies to explore the reasons behind the documented fall in wealth among those who eventually developed dementia compared to those who don't.

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305.688 - 313.257 David Brancaccio

So a person who's older and finds their net worth dropping, that could be a flag for future cognitive problems?

313.738 - 318.323 Chris Farrell

Absolutely. They examine several possible explanations for this widening financial gap.

Chapter 5: What financial risks do older adults face regarding dementia?

318.723 - 341.279 Chris Farrell

And here's what they rule out. reduced earnings, higher out-of-pocket medical bills, purposely spending down assets to qualify for Medicaid, and rationally spending more to enjoy life before the symptoms worsen. And they also say the intriguing possibility of reverse causation, meaning that the shock of poor finances is what leads to cognitive decline, Isn't that persuasive?

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341.7 - 342.922 Chris Farrell

Is not that persuasive.

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342.962 - 344.626 David Brancaccio

So what's a better hypothesis then?

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345.167 - 353.342 Chris Farrell

The evidence is overwhelming that impaired financial decision making in the years before dementia diagnosis is the most plausible reason. All right.

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353.403 - 357.771 David Brancaccio

And there are a lot of stakeholders with the power to help with this, right?

358.392 - 381.426 Chris Farrell

Absolutely. Creating safeguards against declining wealth. Among those with cognitive decline, it's going to demand initiatives from many parts of society, financial institutions, medical professionals, attorneys, and families. That said, the clear message in studies like these is that everyone needs to build a financial plan that anticipates the possibility of developing dementia later in life.

382.207 - 385.592 David Brancaccio

Chris Farrell, Marketplace's Senior Economics Contributor. Thank you.

Chapter 6: How can families safeguard finances against cognitive decline?

385.612 - 395.905 David Brancaccio

Thanks so much. And in Los Angeles, I'm David Brancaccio. It's the Marketplace Morning Report from APM American Public Media.

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