Small Business Administration Cuts 43% Workforce, Assumes Student Loan Management

The Small Business Administration (SBA) announced it will cut over 43% of its workforce as part of the Trump administration's efforts to reduce federal bureaucracy. This decision, affecting approximately 2,795 employees, comes as the agency aims to streamline its operations following a significant expansion during the COVID-19 pandemic. SBA Administrator Kelly Loeffler emphasized that core services, including loan guarantees and disaster assistance programs, will remain intact despite the layoffs. In a shift of responsibilities, the SBA will also take over the management of federal student loans from the Department of Education. Critics are concerned that these cuts could create confusion for borrowers and negatively impact small businesses. The agency claims the move will ultimately promote efficiency and save the government $435 million annually.