Best Practices: Administrator Loeffler Outlines Priorities

Kelly Loeffler, newly confirmed as the 28th Administrator of the U.S. Small Business Administration (SBA), outlined her priorities in a Day One memo. She emphasized rebuilding the agency into a driver of free enterprise by reducing bureaucracy, increasing accountability, and promoting economic growth under President Trump’s “America First” agenda. Loeffler aims to streamline SBA operations, ensure efficiency, and safeguard taxpayer dollars while prioritizing small business empowerment.

Her primary focus includes supporting domestic manufacturing by transforming the SBA’s Office of International Trade into the Office of Manufacturing and Trade. This shift aims to rebuild American supply chains, create jobs, and promote fair trade. Additionally, the Administrator will pause grants that do not align with the administration’s policies, and reverse support for green energy projects.

To enhance government efficiency, SBA will collaborate with the Department of Government Efficiency (DOGE) to eliminate fraud, waste, and mismanagement. A key step includes mandating full-time, in-office work for SBA employees. Furthermore, the agency will explore workforce reduction measures and advisory board overhauls to improve efficiency.

Loeffler’s administration will prioritize fraud prevention, particularly addressing pandemic-era fraud, which she estimates at $200 billion. SBA is launching a Fraud Working Group and appointing a Fraud Czar to investigate, recover misused funds, and prevent future abuses. Additionally, the agency will conduct an independent financial audit to identify mismanagement and restore fiscal integrity.

Loan program reforms are another key focus, including restoring underwriting standards, improving oversight of non-bank lenders, and eliminating programs that jeopardize the zero-subsidy status of SBA-backed loans. In particular, the Administrator intends to conduct a full review of current lending SOPs with the goal of ending the “Do What You Do” standard for lending. The agency will also restart dormant collections programs and review lending practices to ensure that taxpayer funds support only eligible small businesses.  Additionally, the agency will seek to return federal small business contracting goals to their statutory levels to ensure fair competition.

SBA is also committed to reducing regulatory burdens by empowering the Office of Advocacy to cut unnecessary regulations that hinder small business growth. Technology and cybersecurity improvements are planned to enhance SBA’s customer service and digital platforms, ensuring efficiency for small business owners seeking assistance, including application of artificial intelligence.

Finally, Administrator Loeffler plans to relocate regional offices and to personally visit SBA’s regional offices and district offices with the goal of facilitating dialogue with small business owners and hear directly about opportunities to support growth and innovation.  For more information regarding SBA guaranteed lending, contact the attorneys at Starfield & Smith at info@starfieldsmith.com or 215.542.7070.