Small Business Administration Announces Agency-Wide Reorganization

The Small Business Administration (SBA) announced a reorganization that would eliminate approximately 2,700 positions — roughly 43% of the agency's workforce of about 6,500 employees. SBA Administrator Kelly Loeffler said the agency had "veered off track" under the prior administration, "doubling in size and turning into a sprawling leviathan plagued by mission creep, financial mismanagement, and waste," and that the cuts would return SBA to its pre-pandemic staffing levels and "realign the agency and its resources with our founding mission." The agency estimated the reorganization would save more than $435 million annually by fiscal year 2026. SBA stated that "core services to the public" — including loan guarantee and disaster assistance programs, as well as field and veteran operations — would not be affected, and that additional personnel would be added to the Office of Disaster Recovery and Resilience. SBA also said it would exempt its Office of Advocacy and inspector general's office from cuts, and that it would eliminate "redundant pandemic-era positions" in the Office of Capital Access that had processed COVID-19 relief program loans. The reorganization would be carried out through voluntary resignations, the expiration of term appointments, and Reductions in Force (RIFs). By January 2026, SBA's own annual report stated the workforce had been reduced by "over 50%," exceeding the initial 43% target.