Small Business Administration to Lay Off 40% of Workforce in Major Restructuring

The Small Business Administration (SBA) announced Friday that it will slash over 40% of its workforce as part of a sweeping agency overhaul.

SBA Administrator Kelly Loeffler confirmed that approximately 2,700 positions will be cut from the nearly 6,500-strong workforce, rolling staffing levels back to those of the first Trump administration.

“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.

“But in the last four years, the agency has veered off track — doubling in size and turning into a sprawling leviathan plagued by mission creep, financial mismanagement, and waste,” she continued.

Reductions will stem from voluntary resignations, the expiration of pandemic-era roles, and some targeted layoffs. The SBA reassured that essential public services will remain intact, with accountability offices such as the Office of Advocacy and the Office of the Inspector General exempt from cuts.

“Just like the small business owners we support, we must do more with less,” Loeffler added.

The move coincides with Donald Trump’s announcement to shift student loan management from the Department of Education to the SBA.

Loeffler blamed the agency’s expansion under former President Biden on a “suite of new progressive programs,” arguing it led to “deterioration of SBA’s services and financial performance.”

Meanwhile, Elon Musk’s Department of Government Efficiency continues a broader push to downsize the federal workforce.

Recently, hundreds of SBA probationary employees were abruptly fired, reinstated, and then fired again, Politico reported.