Rep. Derek Tran Questions SBA Administrator on Frozen Grants and Program Cuts

Concerns Over SBA Grant and Contract Funding

• 📌 Representative Derek Tran expressed concern over the Small Business Administration's (SBA) handling of federal grants and contracts, noting delayed responses to requests for information.
• ⚠️ Tran stated that the SBA's fiscal year 2026 budget proposes eliminating funding for 15 entrepreneurial development programs, which he argues will harm small businesses.
• 💡 Specifically, the proposed cuts would shutter the Orange County Women's Business Center, a resource constituents rely on for career and economic growth.

SBA Administrator's Response to Grant Concerns

• 🎯 SBA Administrator Kelly Loeffler stated that zero SBA programs, services, grants, or contracts have been canceled, frozen, or delayed.
• 🧹 She explained that any delays were due to cleaning up issues from the previous administration, citing $17 million in grants that 100 women's business centers had not received for four years.
• ⚙️ Loeffler mentioned that the new budget aims to streamline services to reduce confusion for small businesses by consolidating resources through field offices and Small Business Development Centers (SBDCs).

Focus on Women's Business Centers and Economic Impact

• 📈 Tran highlighted the success of the Orange County Women's Business Center, which helped start 118 new businesses and created over 500 jobs in 2024.
• 💰 He emphasized the program's efficiency, noting a $6 return in new business revenue and $15 in economic activity for every $1 invested.
• ❓ Tran questioned why funding for this bipartisan-supported program driving job creation is being proposed for cancellation.

SBA's Mission and Support for Veterans

• 🤝 Loeffler reiterated the SBA's mission to focus on small business capital access and service delivery through SBDCs and Veterans Business Outreach Centers.
• 🚀 She highlighted ongoing efforts like the Boots to Business program, offering job and skills training for aspiring entrepreneurs, particularly veterans.
• 🎖️ The Administrator confirmed continued support for Veterans Business Outreach Centers and mentioned recent collaborations, including an MOU with the Veterans Administration.

Rural Affairs and Leadership Appointment

• 🏞️ Tran inquired about the appointment of a leader for the Office of Rural Affairs, to which Loeffler responded it was Richard Kingan, appointed in February.
• 🚜 Loeffler stressed the importance of strengthening rural communities and Main Streets, noting that rural communities have been overlooked in the past.