SBA Administrator Grilled on Staff Reductions and Tariff Impact

SBA Staffing Reductions

• 🎯 Senator Hirono questioned SBA Administrator Kelly Loeffler regarding staff reductions at the agency.
• 📈 Loeffler stated that the SBA is undergoing streamlining and unification, bringing staffing levels back to those during the first Trump administration.
• 📊 Approximately 43% staff reduction is planned, which equates to roughly 2700 staff reductions, to return the agency to its previous size.
• ⚠️ The Administrator noted that the agency had doubled in size during COVID, with 90% of staff working from home, and that co-origination loan programs are no longer being run.

Impact of Tariffs on Small Businesses

• ❓ Senator Hirono questioned whether confusion surrounding President Trump's tariff decisions would help small businesses.
• 🗣️ Loeffler testified that President Trump is a supporter of small businesses and that the tariffs aim to create a level playing field.
• 📉 Small businesses have reported uncertainty and negative impacts due to tariffs, with some, like Walmart, anticipating higher prices.
• 📉 Economists and others do not share the view that these are merely short-term impacts, and concerns were raised about 5 million manufacturing jobs being lost.