WASHINGTON — The U.S. Small Business Administration (SBA) announced its plans for an agency-wide reorganization.
In a news release, SBA mentioned plans to reduce its workforce by 43% – ending the “expansive social policy agenda of the prior Administration, eliminating non-essential roles, and returning to pre-pandemic staffing levels.”
Under the reorganization plan, the agency says it will eliminate approximately 2,700 active positions out of a total active workforce of nearly 6,500 through voluntary resignations, the expiration of COVID-era and other term appointments, and a limited number of reductions in force (RIFs).
According to SBA, core services to the public, including the agency’s loan guarantee and disaster assistance programs, as well as its field and veteran operations, will not be impacted.
“The SBA’s reorganization will enable the agency to become a dynamic and efficient force for small businesses, manufacturing, and job creation in support of President Trump’s economic agenda,” the release stated. “SBA will refocus its resources on the core missions of supplying capital, fostering innovation, supporting veteran small business owners, providing field support, and delivering timely disaster relief.”
SBA officials say key features of the reorganization include:
- Promoting business formation and growth by shifting resources to expand capital formation functions and personnel, removing the emphasis from partisan programs.
- Prioritizing risk management and fraud prevention by centralizing these functions within the Office of the Chief Financial Officer.
- Expanding disaster response support by transferring disaster loan servicing functions and additional personnel into the Office of Disaster Recovery and Resilience. Additionally, the agency will cross-train field office personnel to support disaster recovery efforts.
- Eliminating redundant pandemic-era positions associated exclusively with processing pandemic-era loans within the Office of Capital Access.
- Ensuring that 30% of the agency is located in the field, by decentralizing services and working to better serve Main Streets across America.
- Promoting veteran businesses and American manufacturing by preserving existing staffing levels within the Office of Veterans Business Development and the Office of Manufacturing and Trade.
- Exempting key accountability offices from reductions at this time, including the Office of Advocacy and the Office of the Inspector General.
To learn more, visit www.sba.gov.
