The Small Business Administration, established in 1953 to provide resources to small businesses and manage small business and disaster recovery loans, has announced a workforce reduction of 43%, or roughly 2,700 positions, in a reorganization effort. This move is aimed at returning to pre-pandemic staffing levels and discontinuing certain programs initiated during the Biden administration, according to Kelly Loeffler, the SBA’s new leader. Loeffler stated that by eliminating non-essential roles and streamlining operations, the agency plans to align with the staffing levels from the previous Trump administration.
The SBA assured that key programs such as loan guarantees, disaster assistance, field operations, and veteran services will remain unaffected by the workforce reduction. The job cuts, which will impact 2,700 roles out of a total workforce of 6,500, will involve a mix of voluntary resignations, the conclusion of temporary appointments made during the COVID-19 pandemic, and some involuntary layoffs.
The staff reductions at the SBA are part of a broader initiative by the Trump Administration to downsize the federal workforce, spearheaded by the Department of Government Efficiency under Elon Musk’s leadership. In a separate development, Trump revealed plans to transfer student loan oversight to the SBA as part of an initiative to reallocate responsibilities from the Education Department to other federal agencies. The SBA has not yet provided a response to requests for comment on the matter.
