Loeffler outlines SBA reforms, signals changes to 8(a) program

Kelly Loeffler, former senator and President Trump’s nominee for SBA administrator, pledged significant reforms to the agency, including a review of its financial stability, lending programs, and diversity initiatives, reports the Washington Business Journal. During her Senate confirmation hearing, Loeffler emphasized addressing rising defaults in the 7(a) loan program and enforcing stricter fraud prevention measures.

Loeffler also suggested revisiting SBA’s 8(a) program, stating that all Americans should have access to SBA initiatives, a position aligned with recent court decisions scrutinizing race-based eligibility. This comes after legal challenges temporarily halted new 8(a) applications, forcing SBA to revise its eligibility criteria.

Sen. Joni Ernst, R-IA, who leads the Senate Small Business Committee, echoed the call for reforms, proposing decentralization of SBA staff and reductions in office space. She also criticized what she called “woke” policies, specifically targeting diversity-based allocations in the SBIR-STTR program.