On Thursday, Administrator Kelly Loeffler announced some pretty significant changes to how the Small Business Administration comports itself, including pulling all SBA regional offices out of sanctuary cities and taking steps to ensure that all SBA aid is legal and above board. In an interview on Fox Business, she laid out the plan:
Today, I’m announcing that SBA will relocate our regional offices OUT of sanctuary cities – and implement new citizenship verification for loans, to ensure ZERO taxpayer dollars go to support illegal aliens.
The SBA is putting American citizens – and small businesses – first! pic.twitter.com/pdzOJb4Hub
— Kelly Loeffler (@SBA_Kelly) March 6, 2025
Ms. Loeffler said:
Small business is big business. And 99 percent of our companies across America are small businesses. And so we’re going to make sure this agency delivers the resources that they need to law-abiding Americans, and that’s why today we’re announcing that the SBA is moving out of sanctuary cities, we are making sure that none of our services go to illegal aliens, and we’re cracking down on Biden-era fraud, that, really, that administration facilitated, they lowered the guardrails, they let people into the programs that shouldn’t have been there, and we’re going to hold those criminals accountable.
There are, right now, approximately 33 million small businesses in the United States. Roughly 3.7 million of those have less than 10 employees. These small businesses create 64 percent of new jobs. Small businesses are the major drivers of job growth; a startup business may start with two people, have ten in a year, and a hundred in five years. Large businesses are major employers, but they don’t add to the workforce in the same way a startup might. The guy who cuts grass in your neighborhood may be a small businessman; ditto for your auto mechanic, your barber, the lady who grooms your dog, and many more.
The sanctuary city angle, though, is an interesting notion.
See Related: And Another: Trump’s SBA Administrator Confirmed, Wants to Usher in ‘Golden Era of Prosperity and Growth’
Kelly Loeffler’s Post About Her SBA Office Goes Viral When She Explains What Her First Actions Will Be
The Trump administration has, from the get-go, been making moves against sanctuary jurisdictions, as has the Republican-controlled Congress. The “sanctuary” policies are becoming harder for city officials to defend, and now here’s another poke at the demise of a thousand cuts the Trump administration and Congress are inflicting on these cities. Removing the SBA offices won’t be a huge loss in jobs and revenues, but there will be some, and these things add up.
The Small Business Administration lists as its primary purpose:
Created in 1953, the U.S. Small Business Administration (SBA) continues to help small business owners and entrepreneurs pursue the American dream. SBA is the only cabinet-level federal agency fully dedicated to small business and provides counseling, capital, and contracting expertise as the nation’s only go-to resource and voice for small businesses.
It seems more likely that the best thing the federal government could do to help small businesses is to stay out of the way. But if there is to be such an administration, the least they could do is to make sure all of their services are provided legally, fairly, and above board. This seems to be a step in that direction.
The Trump administration is changing the way things are done in DC each and every day.
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