In an ambitious move to reshape the U.S. Small Business Administration (SBA), newly confirmed Administrator Kelly Loeffler has released a memo detailing her strategic priorities. Titled an “America First engine for free enterprise,” Loeffler aims to streamline operations, reduce bureaucracy, and combat fraud while aligning SBA initiatives with national objectives to bolster small businesses.
Identifying fraud, waste, and mismanagement as critical issues, Loeffler has announced an immediate independent financial audit, a move spurred by ongoing challenges in achieving satisfactory audit results. Key initiatives outlined in her plan include:
- Implementing a zero-tolerance fraud policy, including the appointment of a Fraud Czar to oversee investigations related to pandemic-era malpractices and to recover misappropriated taxpayer funds.
- Restoring underwriting standards for loan programs, reinstating practices to safeguard the integrity of the SBA’s 7(a) lending program and associated public-private initiatives.
- Prohibiting assistance to illegal aliens, adhering to previous executive directives concerning taxpayer funding.
- Limiting access to SBA resources for foreign nationals connected to hostile entities, including the Chinese Communist Party.
Loeffler has emphasized the importance of domestic manufacturing and economic independence as foundational elements of her vision for the SBA. She has announced a significant shift for the Office of International Trade, which will now be known as the Office of Manufacturing and Trade, with an emphasis on revitalizing American supply chains and fostering job creation. The SBA will additionally:
- Support small manufacturers while promoting “Made in America” initiatives.
- Enforce executive orders aimed at dismantling Diversity, Equity, Inclusion, and Accessibility (DEIA) programs within the agency.
- Collaborate with the Department of Government Efficiency (DOGE) to enhance operational efficiency and minimize bureaucratic expenses.
Further strategies mentioned in the memo focus on workforce restructuring and regulatory reforms to align SBA operations with broader governmental initiatives. Effective immediately, the SBA will:
- Require full-time, in-office work for all employees, in line with directives for a return to in-person operations.
- Assess potential staff reductions and revise advisory boards to heighten agency productivity.
- Eliminate regulatory burdens by ensuring full staffing in the Office of Advocacy, which is dedicated to assessing and removing federal regulations that stifle small business growth.
In addition to these reforms, Loeffler’s memo includes several initiatives aimed at ensuring equitable competition within federal contracting. Notable steps will involve:
- Halting partisan voter registration efforts and reversing previous agreements.
- Relocating SBA regional offices from areas classified as sanctuary cities to enhance accessibility and reduce costs.
- Restoring federal contracting goals for Small Disadvantaged Businesses (8(a) program) to statutory levels, reversing previous alterations.
- Advancing SBA technology and cybersecurity measures, exploring the use of AI to optimize services.
Framing her leadership as a recommitment to the core mission of the SBA, Loeffler expressed intentions to foster transparency, ensure fiscal responsibility, and limit federal involvement in small business activities. “It’s a new day at the SBA,” she stated, underscoring a commitment to accountability and the prudent use of taxpayer resources.
