Trump administration to cut nearly half of Small Business Administration workforce

 March 22, 2025

The Trump administration has announced that the Small Business Administration will be cutting more than 40 percent of its workforce as part of a major restructuring to save costs and improve efficiency.

SBA Administrator Kelly Loeffler revealed that an astounding 2,700 positions out of its workforce of nearly 6,500 employees are set to be cut confirming that the agency is yet another federal agency that is bloated and inefficient.

Loeffler issued a statement explaining, "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."

She continued by saying, "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."

The SBA is no longer fulfilling its intended mission and now the massive bloat and waste that was allowed to grow under the Biden administration will be completely cut.

Massive Reforms

The cuts to the SBA are part of a greater initiative by the Trump administration to cut costs across the board by stripping down federal agencies, and in some cases, completely dissolving those agencies.

Loeffler's press release noted that many of the cuts being made to the SBA will come in the form of voluntary resignations, elimination of pandemic-era roles and other term appointments, and a “limited number” of reductions in force.

Loeffler also made it clear that the Office of Advocacy and the Office of the Inspector General will not be impacted by cuts and the SBA's core capabilities will also not be impacted by the cuts.

Like many federal agencies, the SBA will have a narrow focus and be hyper-efficient in order to meet the demands of President Donald Trump who is determined to cut the federal government's size as much as possible as quickly as possible.

Loeffler acknowledged this effort saying, “Just like the small business owners we support, we must do more with less."

Dire Straights

The Biden administration has left President Trump in a tough spot with unspeakable waste and expenses adding onto pre-existing trillions in debt. However, unlike in 2016, Trump is racing against the clock to fix the dire financial situation the nation is in.

Trump, with the help of billionaire entrepreneur Elon Musk, is working hard to balance the budget and finally reverse the debt counter that has been going up for decades.

This won't be an easy task, especially considering the trillions in costs created by the pandemic. Furthermore, it appears that in the last year, the Biden administration went on a spending spree further exacerbating the already dire situation and leaving Trump with the bill.

The cuts at the SBA eliminating thousands of federal jobs will ease the burden on taxpayers while maintaining core functions. This in combination with the cuts across the whole federal government will hopefully stem the bleeding.

© 2025 - Patriot News Alerts