Following her confirmation as the 28th Administrator of the U.S. Small Business Administration (SBA), Kelly Loeffler has issued a memo detailing her day-one priorities aimed at restructuring the agency to align with President Trump’s America First agenda. These priorities focus on cutting bureaucracy, eliminating fraud, supporting U.S. manufacturing, and strengthening the SBA’s role in promoting free enterprise.
Loeffler emphasized that small businesses are the backbone of the American economy, but that SBA programs have been hindered by fraud, waste, and inefficiencies in recent years. She outlined a plan to restore accountability, streamline operations, and ensure taxpayer dollars directly support small business growth rather than being lost to mismanagement.
Among the key initiatives is the transformation of the SBA’s Office of International Trade into the Office of Manufacturing and Trade. This move is intended to rebuild American supply chains, promote domestic manufacturing, and create jobs as part of a broader effort to boost economic independence. Loeffler also highlighted the SBA’s commitment to supporting innovative technology and manufacturing startups that contribute to the resurgence of “Made in America” production.
Additionally, the SBA will implement President Trump’s executive orders, including rolling back diversity, equity, and inclusion (DEI) initiatives across the agency, eliminating programs that do not align with the administration’s focus on economic growth. This includes the immediate elimination of the SBA’s Office of Diversity, Equity, Inclusion, and Accessibility and the suspension of grants and initiatives that prioritized Green New Deal ventures over broader small business support.
The memo also outlined a series of workforce reforms, including a mandate requiring all SBA employees to return to in-person work immediately. Loeffler stated that federal workers should be held to the same productivity standards as the small businesses they serve, and that in-office work would improve agency performance and responsiveness.
In a crackdown on fraud, Loeffler announced the formation of a Fraud Working Group and the appointment of a Fraud Czar to investigate and recover misused funds. She highlighted an estimated $200 billion in pandemic-era fraud that went unaddressed, vowing to hold those responsible accountable and prevent future abuse within SBA programs.
Further, the SBA will conduct an independent audit of its finances to restore credibility and ensure proper oversight of loan programs, particularly the 7(a) lending program and the Small Business Investment Company program. The agency also plans to tighten underwriting standards, restart dormant collection programs, and end policies that allowed loans to go to ineligible recipients.
Loeffler’s memo also announced that illegal immigrants and hostile foreign nationals will be banned from receiving SBA assistance. In alignment with President Trump’s executive orders, taxpayer-funded programs will be reserved exclusively for American citizens, and additional measures will be put in place to restrict Chinese Communist Party-affiliated businesses from accessing SBA resources.
Looking forward, Loeffler committed to reducing regulatory burdens for small businesses. The SBA will revitalize its Office of Advocacy to challenge unnecessary regulations across federal agencies and cut back on bureaucratic red tapethat hinders job creation. She also pledged to relocate regional SBA offices from sanctuary cities to areas that better align with federal policies and prioritize economic growth.
Another significant change includes ending taxpayer-funded voter registration activities within the SBA. Effective immediately, the agency is rescinding a 2024 agreement with the Michigan Secretary of State that required SBA offices to conduct voter registration activities under the previous administration. Loeffler stated that the SBA’s focus should remain on empowering job creators and fostering economic development, not engaging in partisan political initiatives.
These sweeping reforms mark a significant shift in the SBA’s direction under Loeffler’s leadership, as the agency moves toward a more business-focused, fraud-resistant, and America First-oriented structure.