President Donald J. Trump’s push to reduce federal government waste, fraud, and abuse will see the Small Business Administration (SBA) reduce its workforce by over 40 percent. The impending cuts, which aim to save more than $435 million annually, will impact roughly 6,500 bureaucrats.
“The strategic reorganization will begin a turnaround for the agency by restoring the efficiency of the first Trump Administration, as well as its focus on promoting small businesses,” the SBA said in a statement, adding: “Core services to the public, including the agency’s loan guarantee and disaster assistance programs, as well as its field and veteran operations, will not be impacted.”
Kelly Loeffler assumed leadership as the SBA’s administrator following her Senate confirmation in February. In a video message shared on social media, she emphasized the need for “rightsizing” due to inefficiencies stemming from the agency’s expansion during the pandemic.
“Since the pandemic, the SBA has doubled its workforce, expanding in size, scope, and spending with miserable results,” SBA Administrator Loeffler said. “That’s why change is coming to the SBA… This agency is done wasting millions of tax dollars to fund a progressive pandemic-era bureaucracy.”
“We will not allow fiscal mismanagement to threaten our loan programs or criminals to get away with fraud. But we will evaluate every program and expenditure, and we will rightsize the agency to transform the SBA into a high-efficiency engine for America’s entrepreneurs and taxpayers,” she added.
President Trump recently announced a shift in responsibilities, assigning the SBA to manage federal student loan programs. This decision follows an order to downsize the Department of Education, which has traditionally overseen these programs.
WATCH:
Change is coming to the SBA. pic.twitter.com/rHXSfk168M
— Kelly Loeffler (@SBA_Kelly) March 21, 2025