The Small Business Administration (SBA) announced on Friday that it will cut 43 percent of its workforce.
This means that the SBA will eliminate 2,700 jobs out of 6,500. According to the SBA press release, this move will save taxpayers $435 million annually by Fiscal Year 2026.
SBA said it is planning this agency-wide reorganization to comply with President Donald Trump’s executive order he signed last month attempting to reduce the size of the federal government.
“Just like the small business owners we support, we must do more with less. We have therefore submitted plans to pursue a strategic restructuring that will realign the agency and its resources with our founding mission,” SBA Administrator Kelly Loeffler said.
“By eliminating non-mission-critical positions and consolidating functions, we will revert to the staffing levels of the last Trump Administration, which supported a historic economic boom,” she added. “We will return our focus to driving private sector growth and delivering disaster relief with accountability, efficiency, and results.”
The SBA added that this staff reduction will return the department to empowering small businesses and restoring accountability to American taxpayers.
This staff reduction, according to the SBA, will help the agency become a dynamic and efficient force for small businesses, manufacturing, and job creation.
The SBA said it will shift its resources to focus on supplying capital, fostering innovation, assisting veteran small business owners, providing field support, and delivering disaster relief.
With this resource refocus, the SBA will have 30 percent of its workers outside the office.
This staff reduction, the SBA press release says, is to counteract the expansion the department saw under the Biden administration. It says the SBA has doubled in size since the COVID-19 pandemic.
Loeffler said the SBA was created to help American small businesses by offering access to capital, which encourages job creation. She added that since the department’s expansion, it has become a “leviathan plagued by mission creep, financial mismanagement, and waste.”
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Zachery Schmidt is the digital editor of The Star News Network. Email tips to Zachery at zschmidt1717@gmail.com. Follow Zachery on Twitter @zacheryschmidt2.
