Small Business Administration to exit Chicago over sanctuary city status

CHICAGO (WGN) — The Small Business Administration plans to close its Chicago office and those in five other sanctuary cities.

Administrator Kelly Loeffler, who was born in Bloomington and attended the University of Illinois Urbana-Champaign, said in a Thursday announcement that offices in Atlanta, Boston, Chicago, Denver, New York City and Seattle would be closed. The work would resume in municipalities the administration deems less costly, more accessible and that “better serve the small business community and comply with federal immigration law.”

“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,” Loffler’s statement said.

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Additionally, the agency on Thursday said it would be instituting a new citizenship verification policy for SBA programs. Lenders would need to confirm that applying business are not owned in whole or in part by someone in the country illegally.

“We will return our focus to empowering legal, eligible business owners across the United States – in partnership with the municipalities who share this Administration’s commitment to secure borders and safe communities,” Loffler said.

The announcement comes just one day after Chicago Mayor Brandon Johnson, New York Mayor Eric Adams, Boston Mayor Michelle Wu and Denver Mayor Mike Johnston answered questions about sanctuary status in their respective cities.

In Chicago, city ordinance and state law prevent police officers from questioning people about their immigration status and limits their ability to cooperate with Immigration and Customs Enforcement. The policy has been in place, in some form, for 40 years.