Following her confirmation and swearing-in as the 28th Administrator of the U.S. Small Business Administration (SBA), Kelly Loeffler is setting her agenda to transform the agency significantly. Her Day One memo outlined ambitious priorities aimed at creating what she describes as an "America First engine for free enterprise" and restoring accountability within the organization.
"Small businesses are the backbone of our nation, driving innovation, job creation, and prosperity – and there’s no stronger advocate for small business than President Trump or myself,” Loeffler stated. She criticized the previous administration's handling of the SBA, remarking, “Over the last four years, the SBA has burdened entrepreneurs with bureaucracy – with its programs becoming mired in fraud, waste, and abuse. That changes today.”
Among the key priorities Loeffler detailed is the promotion of U.S. manufacturing. She plans to reinforce the agency’s commitment to the America First agenda by revitalizing American supply chains and investing significantly in manufacturing sectors. “The vast majority of America’s manufacturers are small businesses,” she explained, emphasizing the SBA's role as a facilitator for tens of thousands of these enterprises.
The restructured Office of International Trade will be rebranded as the Office of Manufacturing and Trade, focusing on scaling innovative manufacturing and technology startups. This change intends to encourage independence from foreign supply chains, thereby enhancing national security and economic resilience.
Loeffler's commitment to streamline SBA operations is underscored by her directive to mandate full-time, in-office work for employees, reversing the remote work policies implemented during the pandemic. “The problem with work from home in the federal government is all about accountability,” said Jeremy Carl, former Deputy Assistant Secretary of the Interior, highlighting Loeffler's perspective on employee performance. With President Trump’s order, she insists, federal employees will need to return to their offices five days per week.
Notably, Loeffler has also outlined her plans to enforce all of President Trump's executive orders, including measures directly targeting diversity, equity, and inclusion (DEI) initiatives within the SBA. The Office of Diversity, Equity, Inclusion, and Accessibility is being eliminated, with existing employees placed on administrative leave. “We are prioritizing the elimination of waste and fraud within the agency,” Loeffler stated, emphasizing her plan to initiate investigations and audits across all SBA programs.
Under her leadership, the SBA aims to combat the estimated $200 billion loss attributed to fraud during the pandemic. Loeffler announced the establishment of a Fraud Working Group and the appointment of a Fraud Czar to oversee these efforts. “From day one, we will uphold the highest standards of accountability, performance, and integrity, where taxpayer dollars will be safeguarded, not squandered,” she articulated.
Another major change Loeffler is spearheading is the relocation of SBA regional offices out of sanctuary cities, like Denver, which has had significant immigrant-friendly policies. The decision aims to reach Main Streets across America, especially rural areas, and serve communities compliant with federal immigration laws. This move aligns with the broader goals of the administration to reshape the federal government's engagement with local communities.
“To provide real results, we need to eliminate unnecessary regulations complicate access to SBA assistance,” Loeffler explained. The previous administration's targets for Small Disadvantaged Businesses under the 8(a) contracting program will be reverted from the increased goal of 15% back to its original 5%, as part of her efforts to promote fair competition among all small businesses.
Critics have expressed concerns about the abrupt changes, warning they might lead to adverse impacts on already vulnerable segments of the small business sector. Market researcher Anna Matson commented on the situation, stating, “This is one of the worst Trump policies. Adding 2-3 hours to the workday significantly reduces time for families.”
Loeffler has reaffirmed her dedication to reestablishing the SBA’s foundational mission: empowering job creators, providing disaster relief, and facilitating economic growth. The multifaceted changes under her administration signal a major shift geared toward efficiency and addressing longstanding issues within the agency. Kelly Loeffler’s early actions as SBA Administrator will likely shape the agency's direction significantly, as she seeks to champion small businesses across the nation.