SBA Administrator Kelly Loeffler Testifies on FY2026 Budget and Small Business Initiatives

SBA Budget and Mission

• 🎯 The SBA's initial budget request for FY2026 is $600 million to manage operations, grants, and loan programs.
• 💡 Administrator Loeffler emphasizes a return to the SBA's core mission: streamlining services, eliminating waste, and ensuring taxpayer dollars deliver measurable results.
• 🚀 The agency aims to refocus on proven solutions like capital access programs and the nationwide network of Small Business Development Centers (SBDCs).

Small Business Economic Impact and Support

• 📊 Small businesses employ 61.7 million people (46.4% of the US workforce) and generate a comparable share of economic activity.
• 💰 The SBA guarantees approximately $72 billion in business loans annually, including major support through the 7A, 504, and Small Business Investment Company programs.
• 🛠️ The SBA plays a critical role in disaster recovery, providing loans to individuals and businesses to rebuild physical assets and recover lost income.

Reforms and Operational Changes at SBA

• ✅ The SBA has undergone a reorganization to rightsize the agency, returning to pre-pandemic staffing levels and shifting resources to field offices.
• 📉 Wasteful contracts have been canceled, saving over $3 billion, and efforts are underway to restore financial integrity to loan programs.
• ⚖️ The agency is depoliticizing its operations, ending DEI mandates and focusing on merit-based lending and free enterprise principles.

Addressing Tariffs and Trade

• ⚠️ Concerns were raised about the impact of tariffs on small businesses, particularly those importing goods with no domestic alternatives, leading to increased costs and potential business closures.
• 🌍 The SBA is focused on onshoring and fair trade, launching a portal to connect small businesses with domestic suppliers and advocating for American industry.

Support for Veterans and Specific Programs

• 🎖️ The SBA is committed to supporting veterans, rectifying past issues where DEI initiatives crowded out veteran programs.
• 💡 Programs like Boots to Business and Reboot are being enhanced, with efforts to streamline veteran access to small business resources.
• 🔬 The agency is reviewing the SBIR program to strengthen its role in bringing critical technologies to market.