Small Business Administration to reorganize, cut about 2,700 jobs
By Mae Anderson
FILE - Administrator of the Small Business Administration Kelly Loeffler, right, speaks at a rally before Vice President JD Vance speaks about "America's industrial resurgence," Friday, March 14, 2025, at Vantage Plastics in Bay City, Mich. At left is Vantage Plastics President Paul Aultman. (AP Photo/Jose Juarez, File)
NEW YORK (AP) — The Small Business Administration said it will cut its workforce by 43%, or about 2,700 jobs, as part of a reorganization.
The SBA was established in 1953 to offer resources to small businesses and helps administer small business and disaster recovery loans. It played a crucial role during the pandemic, helping distribute small business aid. Now the goal is to return to pre-pandemic staffing levels and cut some programs started during the Biden administration, said the new head of the SBA, Kelly Loeffler.
“By eliminating non-mission-critical positions and consolidating functions, we will revert to the staffing levels of the last Trump Administration,” Loeffler said Friday in a statement.
The SBA said its loan guarantee and disaster assistance programs, as well as its field and veteran operations, won't be affected. The staffing reductions, which will cull 2,700 jobs from the agency's workforce of 6,500, will be a combination of voluntary resignations, the expiration of COVID-era and other term appointments, and some job cuts.
The layoffs at the federal agency are part of a larger campaign by the Trump Administration to shrink the federal workforce, an effort has been led by Elon Musk’s Department of Government Efficiency.
Separately on Friday, Trump announced student loans would be handled by the SBA as part of a plan to shift Education Department responsibilities to other federal agencies. The SBA did not immediately respond to a request for comment.
Shan Aggarwal, VP of Corporate and Business Development at Coinbase, discusses the company's acquisitio of Deribit as it heads into the S&P 500. Watch!
American businesses that rely on Chinese goods are reacting with muted relief after the U.S. and China agreed to pause their exorbitant tariffs on each other’s products for 90 days. Many companies delayed or canceled orders after President Donald Trump last month put a 145% tariff on items made in China. Importers still face relatively high tariffs, however, as well as uncertainty over what will happen in the coming weeks and months. The temporary truce was announced as retailers and their suppliers are looking to finalize their plans and orders for the holiday shopping season. They’re concerned a mad scramble to get goods onto ships will lead to bottlenecks and increased shipping costs.
Shopping expert Trae Bodge discusses how talks between the U.S. and China is good news for now, but uncertainty remains for back-to-school and the holidays.
Jake Traylor, White House reporter at Politico, joins Cheddar to discuss how Trump is aiming to lower drug prices and how it differs from Biden's approach.
DJ X, alongside Molly Holder, Senior Director of Product Personalization, takes us inside Spotify's A.I. DJ and how it's the best new way to listen to music.
Sheryl Palmer, CEO of Taylor Morrison, talks tariff uncertainty, being a female leader in a male dominated industry and what homebuyers need to know. Watch!
