SBA on the Chopping Block: Small Business, Big Consequences

Trump’s cuts to the Small Business Administration (SBA) are not just number – they’re a threat to Main Street. Slashing 43% of SBA staff and shuttering major urban offices under the guise of “cost-efficiency” punishes cities for immigration policy disputes and undermines the very support systems that kept small businesses afloat during the pandemic.

This isn’t just bad policy – it’s reckless, harming small businesses which Trump claims he supports. Since 2019, the SBA’s loan portfolio has tripled, fueled by over $450 billion in pandemic aid and natural disaster relief to small businesses. Southern and western states are the primary beneficiaries – hurricane relief, flooding, and wildfires top the list.

And there’s more on the horizon. The Trump administration’s plan to shift oversight of $1.6 trillion in student loans to the SBA only adds to the agency’s burden. Can an already overtaxed and gutted SBA take on another massive portfolio?

History offers a warning. Just look at the Social Security Administration, where deep cuts have led to failing websites and soaring call wait times. If DOGE’s cuts go through, the SBA could be next—leaving disaster victims, struggling entrepreneurs, and now possibly student loan borrowers with nowhere to turn.

Support for small businesses isn’t just about loans—it’s about access, service, and survival. These cuts threaten all three. Will Washington listen before it's too late?

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