SBA Administrator Kelly Loeffler Announces Sweeping Reforms, Slashes 43% of Staff to Restore Trump-Era Efficiency
In a bold move to restore fiscal responsibility and cut wasteful spending, Small Business Administration (SBA) Administrator Kelly Loeffler announced Friday that the agency will reduce its workforce by 43%, eliminating bloated positions and reversing Biden-era progressive social policy initiatives.
The decision comes as part of President Trump’s broader effort to streamline government agencies and refocus them on their core missions. The SBA’s reorganization will prioritize small business growth, veteran entrepreneurship, and disaster relief, while eliminating inefficiencies that ballooned the agency’s size under Joe Biden.
Loeffler made the announcement on X (formerly Twitter):
“Change is coming to the SBA.”
Reversing Biden’s Wasteful Spending
Under the Biden administration, the SBA nearly doubled in size, expanding into partisan social policies that diverted resources from small business owners. Programs like the Green Lender Initiative, Community Navigator Pilot Program, and Diversity, Equity, and Inclusion (DEI) efforts were implemented at the expense of small businesses and taxpayers.
This reckless expansion left the SBA financially mismanaged, with an estimated $200 billion in fraud from Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds—a scandal that went virtually unchecked for four years.
Key Changes in the SBA Overhaul
The agency-wide reorganization will restore SBA’s efficiency by focusing on its original mission while eliminating unnecessary bureaucratic positions. Some of the most notable changes include:
✔ Shifting resources to business growth – Refocusing efforts on expanding capital access and job creation, rather than funding left-wing initiatives.
✔ Prioritizing fraud prevention – Strengthening risk management by placing fraud oversight under the Chief Financial Officer (CFO).
✔ Expanding disaster relief efforts – Streamlining disaster recovery operations to improve response times for businesses in crisis.
✔ Eliminating redundant pandemic-era positions – Terminating temporary roles that were created exclusively for pandemic loan processing.
✔ Decentralizing services – Ensuring 30% of SBA’s workforce is located in regional field offices to provide better support to small businesses.
✔ Strengthening veteran business support – Protecting and expanding services for veteran entrepreneurs and American manufacturers.
✔ Exempting key oversight offices – Keeping intact accountability offices like the Office of Advocacy and the Inspector General to maintain financial transparency.
Biden’s SBA Legacy: Soaring Defaults, Rising Fraud
Biden’s SBA policies not only failed small businesses but also jeopardized the agency’s financial stability. Under his administration, the SBA’s 7(a) loan program suffered its first negative cash flow in over a decade, signaling rising defaults and delinquencies that will impact American taxpayers for years to come.
Rather than tackling this crisis, Biden-era officials instead focused on political pet projects, pushing costly DEI initiatives that diverted resources away from entrepreneurs and job creators.
Loeffler’s bold leadership marks a clear departure from Biden’s mismanagement. With the SBA’s leaner, more efficient structure, small businesses can expect better access to capital, improved disaster relief, and stronger fraud prevention—all while saving billions in taxpayer dollars.
Restoring America’s Small Business Engine
By eliminating unnecessary bureaucracy and prioritizing real economic growth, the SBA’s overhaul aligns with President Trump’s pro-business agenda. Small businesses, the backbone of the U.S. economy, will once again have an agency that works for them—not one that serves as a tool for left-wing activism.
As the Trump administration continues to dismantle wasteful government bloat, the SBA’s transformation sends a clear message:
Government should work for the American people—not against them.