By Mark Weiner
syracuse.com
(TNS)
WASHINGTON (June 12) — House Republicans have passed a bill that could force the U.S. Small Business Administration to shut down its offices in Syracuse and pull out of New York state because they are “sanctuary jurisdictions” with immigrant-friendly policies.
The bill requires the SBA to shutter regional, district, or local offices within 60 days if the agency determines the office is in a sanctuary city, county or state. Those offices could be relocated to “non-sanctuary jurisdictions.”
President Donald Trump’s administration last month added Syracuse and New York state to a list of more than 500 “sanctuary jurisdictions” that it says are “deliberately obstructing the enforcement of federal immigration laws and endangering American citizens.”
If the “Save SBA from Sanctuary Cities Act of 2025” passes the Republican-controlled Senate and is signed into law by Trump, the legislation could take an economic toll on New York-based businesses.
The SBA, an independent federal agency, uses its network of field offices to help Americans start, build and grow their small businesses. The SBA provides loans, counseling, federal contracting certifications, and disaster recovery aid for small business owners.
In New York, the Syracuse district office helps business owners in a sprawling region covering 34 of the state’s 62 counties, stretching from the Canadian border to the Hudson Valley.
The Syracuse office approved 286 loans worth more than $91.4 million for New York businesses this year through the end of May, according to SBA data.
During the same period in 2024, the Syracuse office approved 255 loans worth $84.1 million.
SBA officials in Washington did not respond to questions from syracuse.com about the bill and what it would mean for the future of the agency’s offices in New York state.
SBA Administrator Kelly Loeffler applauded the House’s approval of the bill on Thursday.
Loeffler said in a statement that the bill supports the agency’s decision in March to relocate SBA regional offices out of places that “refuse to comply with federal immigration law.”
“By harboring criminal illegal aliens, sanctuary cities jeopardize both the lives of American citizens and the livelihoods of our small businesses – which is exactly why the SBA is moving our field offices out of these lawless jurisdictions and into safer, more accessible communities that comply with federal law,” Loeffler said.
House Democrats who opposed the bill said it would intentionally harm communities that limit police cooperation with federal immigration agents or don’t comply with ICE requests to detain undocumented immigrants.
Rep. John Mannion, D-Geddes, said it’s clear what the Trump administration is trying to do by threatening to close SBA offices.
“I’m deeply concerned by this administration’s use of policy disagreements as justification to punish communities for being welcoming and inclusive,” he said.
Mannion was among 195 Democrats – including all but one from New York state, Rep. Laura Gillen of Long Island—who voted against the bill on Thursday.
He said closing the SBA’s office in Syracuse would threaten “tens of millions in economic support” for small businesses across most of Upstate New York, including the North Country.
The House passed the bill by a vote of 211-199, largely along party lines. Four Republicans including Rep. Nicole Malliotakis, R- Staten Island, voted against the bill.
Malliotakis was the only House Republican from New York to oppose the legislation. Her office did not respond to a request for comment.
Rep. Elise Stefanik, R- Willsboro, missed the vote. Stefanik, who represents the North Country, is considering whether to campaign for New York governor next year.
Syracuse city officials said they are alarmed by the bill and what it might mean for the SBA district office on Harrison Street.
“If such a provision were determined to apply to Syracuse and Onondaga County, it would be detrimental to the many small businesses and entrepreneurs who are served by the office’s current central location in Syracuse,” said Greg Loh, the city’s chief policy officer.
He said it wouldn’t make sense to close the office as the region gears up for Micron Technology and its development in Syracuse’s northern suburbs. Micron plans to invest $100 billion to build four computer chip plants over the next 20 years in the town of Clay.
“The city of Syracuse and Onondaga County are experiencing significant growth and have even greater demand for the kind of manufacturing and innovation capacity that is generated by small businesses,” Loh said.
One of those small businesses and its owner were honored by the SBA last month.
Shawni Davis, owner of Luminary Electrical in Syracuse, was named SBA Small Businessperson of the Year for Upstate New York.
Davis, the first black woman to become a master electrician in Syracuse, made headlines in 2022 when she introduced President Joe Biden at an event at Onondaga Community College to celebrate Micron’s investment.
Davis told syracuse.com Tuesday that it would be a mistake to close the Syracuse SBA office because it provides access to capital and expertise for small businesses like hers.
“There are so many businesses that rely on the SBA for different things,” Davis said. “We’re the lifeblood of the community. No community thrives without small business. So, anything that’s put in place to hold back small businesses, it’s disheartening.”
The House bill introduced by Rep. Brad Finstad, R- Minn. (and co-sponsored by Rep. Nick LaLota, R- Long Island) would give Loeffler sweeping authority to shut down offices.
In March, Loeffler announced that SBA would institute a policy requiring applicants for loans to verify their citizenship and seeking to shut down larger regional offices in cities that don’t comply with ICE officials.
Loffler said the SBA would relocate its regional offices in New York City, Atlanta, Boston, Chicago, Denver and Seattle.
Although there’s no formal definition of a sanctuary city, the term generally refers to cities, counties and states that have laws or policies that obstruct immigration enforcement.
Former Mayor Stephanie Miner declared Syracuse a sanctuary city in 2017, a largely symbolic act.
The U.S. Department of Immigration and Customs Enforcement (ICE) often determines sanctuary city status based on the cooperation it receives from the local jail.
Syracuse doesn’t operate its own jail. People taken into custody by Syracuse police are held at the Onondaga County Justice Center jail, which is operated by the Onondaga County Sheriff’s Office.
Onondaga County Sheriff Toby Shelley told syracuse.com in January that his office will not comply with ICE requests to detain undocumented immigrants for federal law enforcement authorities.
Shelley said his office complies with ICE only if authorities have an arrest warrant signed by a judge to detain a person in the jail’s custody.
The Department of Homeland Security, when asked to explain why Syracuse is on the list of sanctuary jurisdictions, did not cite a specific reason.
“Designation of a sanctuary jurisdiction is based on the evaluation of numerous factors, including self-identification as a sanctuary jurisdiction, noncompliance with federal law enforcement in enforcing immigration laws, restrictions on information sharing, and legal protections for illegal aliens,” a senior DHS official said in an email.
The Department of Homeland Security has since removed the list of sanctuary jurisdictions from its website and has not posted a new list.
The SBA bill passed by House Republicans last week was one of two that seek to codify Trump’s executive orders and link the SBA and immigration policies.
A separate bill passed Thursday would require applicants for SBA loans to prove they are U.S. citizens.
Photo caption: Administrator of the U.S. Small Business Administration Kelly Loeffler delivers a speech on March 14, 2025, inside Vantage Plastics, a plastics manufacturer located in Michigan. (Kaytie Boomer/TNS)
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©2025 Advance Local Media LLC. Visit syracuse.com. Distributed by Tribune Content Agency LLC.
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