Republican Senator Joni Ernst of Iowa has taken significant legislative steps aimed at increasing the Small Business Administration's (SBA) accessibility to small business owners across the nation. On January 29, 2025, she reintroduced the "Returning SBA to Main Street Act," which seeks to relocate nearly one-third of SBA bureaucrats from Washington, D.C., to areas closer to the constituents they serve.
This move is intended to bridge the gap between the SBA's operations and the small businesses dependent on its services. According to Ernst, "Every small business owner knows if your customers can’t reach you, your doors won’t be open very long." She stressed the importance of having SBA employees physically present where businesses need them, rather than isolated within the D.C. bureaucracy, remarking, "The SBA might as well have had a closed for business sign on its door for the last four years with bureaucrats permanently out of office."
The act, which is a part of Ernst's broader initiative to decentralize government operations, reflects her response to concerns raised during a Senate hearing on September 19. Witnesses from Iowa testified about their difficulties accessing SBA assistance, and Ernst attributed these challenges to the liberal telework policies instituted during the Biden administration.
Ernst's legislation is not the first of its kind; it builds on previous attempts to reduce bureaucratic inertia, such as the larger "DRAIN THE SWAMP Act," which aimed to relocate workers across various agencies. This current proposal calls for at least 30% of SBA employees to be moved out of D.C. and for the agency to cut its office space by the same margin. Notably, the act emphasizes promoting geographic diversity, considering rural markets when relocating employees, and ensuring adequate local staffing levels to provide efficient customer service.
Senator Ernst's commitment to this cause echoes sentiments shared by various constituents who have felt the impacts of SBA's distant operations. The proposed legislation also includes provisions prohibiting relocated employees from telecommuting, aiming to cement the importance of on-site presence.
On January 20, 2025, then-President Trump signed an executive order mandatorily returning federal employees to their offices after COVID-19 restrictions, reinforcing Ernst's push for greater accountability and physical accessibility to federal services. Ernst's recent 60-page report, published on December 5, 2024, outlines the challenges stemming from telework, including issues related to locality pay and the dilapidation of office environments due to high vacancy rates. "Telework created significant issues involving locality pay, which ensures federal employees receive competitive compensation comparable to private-sector counterparts," she remarked during the release of her report.
The reintroduction of the "Returning SBA to Main Street Act" indicates a concerted effort by Republicans to reevaluate federal operations post-pandemic and align them more closely with the needs of the American business community. This legislation not only aims to promote efficiency within the SBA but also presents Ernst as a watchdog for small businesses, emphasizing the need for greater connection and support.
Ernst’s initiatives resonate particularly with small business owners who have felt undervalued and underserved by federal agencies operating from the distant corridors of power. The senator's actions signal to constituents the importance of responsiveness and accountability among federal agencies, demonstrating her determination to advocate for the needs of Iowans and, by extension, small business owners across the country.
With this legislative push, Ernst is hopeful to shift the dynamics of power away from the political center and bring it closer to everyday Americans who rely on federal support to thrive. The pending outcomes of this act and the feedback received from business owners will likely shape future actions and policies aimed at ensuring the SBA is dynamic, accessible, and fully equipped to help America's small businesses succeed.