WASHINGTON – The Small Business Administration on Friday said it is cutting more than 40% of its staff as part of the Trump administration A wider effort Reduce the federal bureaucracy.
According to the latest available data, the SBA employs around 6,500 people, or less than half of the entire federal workforce. The agency said in a statement that it would “cut the workforce by 43%,” and that the cuts would save more than $435 million a year by next year.
“The strategic restructuring will begin the turnaround for the agency by restoring the efficiency of the first Trump administration and focusing on promoting small and medium-sized businesses,” the agency said. “The agency’s loan guarantees and disaster relief programs and core services to the public, including its sector and veteran businesses, will not be affected.”
The Senate voted to confirm former Senator Kelly Roeffler as the agency’s administrator in February. In a video posted to X on Friday, Loeffler said it was time to “give the agency the rights.”
“Since the pandemic, the SBA has doubled the workforce, with disastrous results in size, scope and spending,” Loeffler said in the video. “That’s why changes are coming to the SBA. …The agency is wasting millions of taxes to fund progressive, pandemic-era bureaucracy. It won’t allow mismanagement of finances to escape loan programs and criminals through fraud.
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Staff are spread across regional offices nationwide. Texas has more SBA employees than any state, including the District of Columbia, where the agency is headquartered.
Speaking at the White House on Friday morning, President Trump announced that he will be in charge of processing the federal student loan program one day after the SBA signs the order to launch. Involving the Ministry of Educationcurrently managing the program. Experts I warned The order can disrupt student loans and lead to frustration for millions of borrowers. Administrative officials say the student loan program will eventually be transferred to agencies such as the SBA, the Ministry of Finance and the Department of Commerce.
The SBA was established by Congressional Act in 1953 when Dwight D. Eisenhower was president of “Aid, Advice, Support, Protection, and Protection” “when possible, the benefits of small business concerns.”
Provide loans to businesses that fall victim to natural disasters and provide assistance on international trade issues. The agency’s federally supported loans and grants were a lifeline for small businesses and nonprofits during the Covid-19 pandemic.
Arden Farhi contributed to this report.
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