Additional Coverage:
SBA to Slash Thousands of Jobs
The Small Business Administration (SBA) announced a significant restructuring plan that will result in approximately 2,700 job cuts, shrinking its workforce by 43%. The agency, established in 1953 to support small businesses and manage disaster recovery loans, stated the move is aimed at returning to pre-pandemic staffing levels after a period of expanded activity during the COVID-19 crisis.
SBA Administrator Kelly Loeffler framed the decision as a move to streamline operations and eliminate what she termed “non-essential roles” tied to the previous administration’s agenda. She emphasized the goal of achieving similar staffing levels as those seen during the Trump administration.
Loeffler assured the public that core SBA functions, including loan guarantees, disaster assistance, and support for veterans and field operations, will not be impacted. The workforce reduction will be achieved through a combination of voluntary resignations, expiring term appointments, and some involuntary separations.
This announcement comes amidst a broader push by the Trump administration to reduce the size of the federal workforce, an initiative spearheaded by the Department of Government Efficiency.
In a separate announcement, President Trump revealed the SBA would absorb responsibilities for student loans, shifting them away from the Department of Education, an agency he aims to dismantle. Loeffler expressed the SBA’s readiness to handle this new role and work with Congress to oversee the student loan program. She highlighted the agency’s existing experience as a major guarantor of business loans as relevant expertise for managing student loans.