The U.S. Small Business Administration (SBA) announced a significant restructuring plan that will see its workforce reduced by 43% as 2,700 positions are eliminated. The change is part of measures to return staffing levels to those of the last Trump administration. The new SBA administrator, Kelly Loeffler, assured that "core services" like loan guarantees and disaster assistance programs will remain unaffected.
The restructuring is expected to result in annual savings of $435 million. The SBA serves 33.2 million small businesses in the United States, which employ around 46% of the country's private-sector workforce. The agency was established in 1953 by Congress to support small businesses through loans, federal contract assistance, counseling, technical aid, and other services.
The agency previously expanded its workforce to manage the Paycheck Protection Program and other initiatives during the pandemic. "By eliminating non-mission-critical positions and consolidating functions, we will revert to the staffing levels of the last Trump administration," Loeffler stated. She also mentioned that the SBA had experienced "mission creep," citing the Green Lender Initiative, the Community Navigator Pilot Program, and "DEI activities."
This move is aligned with a broader federal workforce reduction campaign led by the Trump Administration and overseen by Elon Musk's Department of Government Efficiency. The effort has resulted in layoffs across various federal agencies, affecting tens of thousands of workers.
Additionally, the Associated Press reported that President Donald Trump suggested that the SBA manage student loans. This suggestion followed the dismantling of the Department of Education by executive order.
