SBA to trim workforce by 43%, even as it prepares to take over student loans from Education Dept

The Small Business Administration (SBA) on Friday said it plans to reduce its workforce by 43%, which would eliminate thousands of jobs, despite preparing to take over student loans from the Department of Education. 

President Donald Trump handed the responsibility to the SBA earlier Friday as he looks to dismantle the Education department. Student loans is one of the largest programs that is handled by the department. 

SBA Administrator Kelly Loeffler said the cuts would impact 2,700 positions, and would “save taxpayers more than $435 million annually by FY26," according to the Washington Examiner. 

“The SBA was created to be a launchpad for America’s small businesses by offering access to capital, which in turn drives job creation, innovation, and a thriving Main Street," Loeffler said in a statement. "But in the last four years, the agency has veered off track — doubling in size and turning into a sprawling leviathan plagued by mission creep, financial mismanagement, and waste.

“Just like the small business owners we support, we must do more with less,” she continued. “We will return our focus to driving private sector growth and delivering disaster relief with accountability, efficiency, and results.”

Loeffler said the job eliminations will reduce the workforce back to the size it was during Trump's first administration.

The reductions will be done in several ways, including through voluntary resignations, ending COVID-era and other term appointments, and a limited number of reductions in force. 

The development comes as the Trump administration is hoping to drastically restructure the federal government, including by firing probationary employees in many federal departments.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.