President Trump’s administration is yet more dramatic action, aiming to return the Small Business Administration to its original mission by slashing over 2,700 bloated government jobs in the process.
At a glance:
• The SBA is cutting 43% of its workforce (approximately 2,700 positions), returning to Trump-era staffing levels
• The restructuring will save taxpayers over $435 million annually by 2026
• Core services including loan guarantees, disaster assistance, and veteran support remain unaffected
• The cuts target pandemic-era positions and “mission creep” programs like DEI initiatives and the Green Lender program
• The reorganization is part of Trump’s Department of Government Efficiency (DOGE) initiative led by Elon Musk
Trump Administration Tackles Bloated Bureaucracy
The U.S. Small Business Administration announced a major restructuring plan that will cut its workforce by 43%, eliminating approximately 2,700 positions from the agency. The strategic downsizing reflects President Trump’s commitment to streamlining government and restoring efficiency to federal agencies that expanded dramatically under the Biden administration.
SBA Administrator Kelly Loeffler made it clear that the agency has strayed from its founding purpose in recent years, becoming an unwieldy bureaucratic machine, and argued that slashing the agency would improve its services.
“The SBA was created to be a launchpad for America’s small businesses by offering access to capital, which in turn drives job creation, innovation, and a thriving Main Street,” Loeffler stated.
The reorganization aims to return the agency to pre-pandemic staffing levels and cut programs initiated during the Biden administration. Internal audits revealed an estimated $200 billion in fraud cases related to the Paycheck Protection Program and Economic Injury Disaster Loan programs under Democratic leadership.
Focusing on Core Mission While Saving Taxpayer Dollars
The workforce reduction is expected to save over $435 million annually by Fiscal Year 2026, a significant win for fiscal conservatives who have long criticized government waste. The cuts will primarily target non-essential roles and programs that contributed to what Loeffler described as “mission creep” under the previous administration.
“Just like the small business owners we support, we must do more with less,” Loeffler explained about the restructuring. “We have therefore submitted plans to pursue a strategic restructuring that will realign the agency and its resources with our founding mission.”
Core services such as loan guarantees, disaster assistance, and support for veterans will remain unaffected by the cuts. The Office of Veterans Business Development, the Office of Manufacturing and Trade, the Office of Advocacy, and the Office of the Inspector General are all exempt from reductions. Rumors also indicate that President Trump is working to take student loan responsibilities away from the Department of Education and give them to the new, streamlines SBA.
