Gutting SBA Workforce, Programs is More Devastating News for Small Businesses

“The Trump administration’s move to reduce the U.S. Small Business Administration’s workforce by 43% is a decision that is as devastating as it is unnecessary. SBA in recent years has provided critical resources to entrepreneurs despite being understaffed. It’s also asking SBA to do more with less, as the agency would now be responsible for overseeing student loans in addition to small business lending, according to the administration’s announcement. 

The Trump administration cited so-called ‘broad and costly expansion’ of DEI and other programs under the Biden administration as the primary reason for this decision. Among the programs the administration claimed as an example of waste is the Community Navigator Pilot Program, which was created through the American Rescue Plan with the goal of connecting more small businesses to local resources. Denouncing policies purely because they were enacted under a previous administration is cynical partisanship at its worst. It is also yet another example of President Trump using DEI as a club to eviscerate programs that seek to level our economic playing field. In truth, small businesses soared in record numbers between 2021 and 2024, with more than 21 million new business filings during that time. SBA expanded to help those new businesses. That growth is not an example of government bloat. It is an example of government responding to the needs of the citizens it serves. 

Between tariffs, deporting immigrant entrepreneurs and workers, and freezing payments to small businesses and farmers, this administration is creating uncertainty for the future of America’s small businesses. We sincerely hope that lawmakers will shift their approach to small business policy dramatically and quickly.”