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Kelly Loeffler’s SBA Confirmation Hearing: Key Takeaways for Small Businesses

Former Senator Kelly Loeffler testified before the Senate Committee on Small Business and Entrepreneurship as part of her confirmation hearing for SBA Administrator. She outlined her priorities, including reducing regulatory burdens, expand

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Kelly Loeffler’s SBA Confirmation Hearing: Key Takeaways for Small Businesses

On January 29, 2025, former Senator Kelly Loeffler testified before the Senate Committee on Small Business and Entrepreneurship as part of her confirmation process for Administrator of the Small Business Administration (SBA). Her testimony provided valuable insights into her vision for the SBA and the policies she aims to implement if confirmed. Below, we break down the key points she addressed during the hearing and what they mean for small business owners.

Commitment to Supporting Small Businesses

Loeffler emphasized her dedication to advocating for small businesses, recognizing them as the backbone of the American economy. She noted that small businesses employ nearly half of the U.S. workforce and stressed the need for policies that foster growth, sustainability, and innovation. Her testimony reflected a strong focus on ensuring that entrepreneurs and small business owners have the resources they need to start, expand, and succeed.

Extensive Business and Financial Experience

A key highlight of Loeffler’s testimony was her experience in business and finance, which she believes makes her well-suited to lead the SBA. She detailed her tenure as the Chief Communications and Marketing Officer at Intercontinental Exchange, where she worked on financial services that impact businesses of all sizes. Additionally, she referenced her time as a co-owner of the WNBA team Atlanta Dream, where she dealt with operational and financial challenges firsthand. Loeffler asserted that her background in corporate leadership and financial markets will help her craft SBA policies that are practical and results-driven.

Policy Priorities: Reducing Regulations & Expanding Access to Capital

One of the most anticipated topics of her testimony was her policy priorities if confirmed as SBA Administrator. Loeffler highlighted three main areas of focus:

  1. Reducing Regulatory Burdens – She plans to streamline regulations that may hinder small businesses, particularly in industries like manufacturing, retail, and services. By working to simplify compliance and reduce bureaucratic red tape, she aims to make it easier for businesses to operate efficiently.
  2. Enhancing Access to Capital – Small business owners frequently struggle to secure funding. Loeffler proposed expanding loan programs, making it easier for startups and minority-owned businesses to access financing through SBA-backed loans and grants.
  3. Encouraging Innovation & Entrepreneurship – Recognizing the rise of tech startups and digital entrepreneurship, she emphasized the need for SBA initiatives that support innovation and foster emerging industries.

Strengthening SBA Programs Post-COVIDLoeffler also addressed how she would strengthen SBA programs, particularly in response to the COVID-19 pandemic. She acknowledged that many businesses struggled with shutdowns, supply chain disruptions, and labor shortages. If confirmed, she pledged to improve the administration of SBA loans and disaster relief programs to better support businesses in future crises.Commitment to Transparency & AccountabilityA key theme of Loeffler’s testimony was transparency and accountability. She assured lawmakers that, under her leadership, the SBA would focus on efficient program delivery and responsible resource allocation. By improving oversight and reducing inefficiencies, she hopes to restore trust between the SBA and small business owners.What’s Next?Loeffler’s nomination is currently under Senate review, and a confirmation vote is expected soon. If confirmed, small business owners can anticipate a focus on deregulation, expanded funding opportunities, and enhanced SBA programs.For business owners looking to navigate SBA loans, SBA settlements, or SBA Offer in Compromise (SBA OIC) options, staying informed about upcoming policy changes is crucial. Contact us today for  guidance on SBA-related matters.

You can review the entire transcript here: https://www.c-span.org/program/senate-committee/small-business-administrator-nominee-kelly-loeffler-testifies-at-confirmation-hearing/655049?utm_source=chatgpt.com

Why Hire Us to Help You with Your Treasury or SBA Debt Problems?

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Millions of Dollars in SBA Debts Resolved via Offer in Compromise and Negotiated Repayment Agreements without our Clients filing for Bankruptcy or Facing Home Foreclosure

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Millions of Dollars in Treasury Debts Defended Against via AWG Hearings, Treasury Offset Program Resolution, Cross-servicing Disputes, Private Collection Agency Representation, Compromise Offers and Negotiated Repayment Agreements

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Our Attorneys are Authorized by the Agency Practice Act to Represent Federal Debtors Nationwide before the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service.

$383,000 SBA 7A LOAN - NEGOTIATED RELEASE OF LIEN FOR CONSIDERATION

$383,000 SBA 7A LOAN - NEGOTIATED RELEASE OF LIEN FOR CONSIDERATION

Clients executed several trust deeds pledging seven (7) real estate properties and unconditional personal guarantees for an SBA 7(a) loan from the participating lender. The clients' small business failed and eventually defaulted on repayment of the loan exposing all collateral pledged by the clients. The SBA subsequently acquired the loan balance from the lender, including the right to liquidate  and collect all pledged collateral pursuant to the trust deed instruments.

The Firm was hired to negotiate separate release of lien proposals for all 7 real estate properties. In preparation for the work assignment, the Firm Attorneys initiated discovery  to secure records from the SBA and Treasury's Bureau of Fiscal Service. After reviewing the records and understanding the interplay between the lender and the SBA, the attorneys then prepared, submitted and negotiated the release of lien (ROL) for each of the 7 real estate properties for consideration.

After submitting the proposals, the assigned SBA Loan Specialists approved each ROL package - significantly reducing the total SBA debt claimed.

$975,000 SBA 7A LOAN - SBA OIC CASH SETTLEMENT

$975,000 SBA 7A LOAN - SBA OIC CASH SETTLEMENT

Our firm successfully negotiated an SBA offer in compromise (SBA OIC), settling a $974,535.93 SBA loan balance for just $18,000. The offerors, personal guarantors on an SBA 7(a) loan, originally obtained financing to purchase a commercial building in Lancaster, California.

The borrower filed for bankruptcy, and the third-party lender (TPL) foreclosed on the property. Despite the loan default, the SBA pursued the offerors for repayment. Given their limited income, lack of significant assets, and approaching retirement, we presented a strong case demonstrating their financial hardship.

Through strategic negotiations, we secured a favorable SBA settlement, reducing the nearly $1 million debt to a fraction of the amount owed. This outcome allowed the offerors to resolve their liability without prolonged financial strain.

$750,000 SBA 7A LOAN – NEGOTIATED WORKOUT AGREEMENT

$750,000 SBA 7A LOAN – NEGOTIATED WORKOUT AGREEMENT

Client’s small business obtained an SBA 7(a) loan for $750,000.  She and her husband signed personal guarantees exposing all of their non-exempt income and assets. With just 18 months left on the maturity date and payment on the remaining balance, the Great Recession of 2008 hit, which ultimately caused the business to fail and default on the loan terms. The 7(a) lender accelerated and sent a demand for full payment of the remaining loan balance.  The SBA lender’s note allowed for a default interest rate of about 7% per year. In response to the lender's aggressive collection action, Client's husband filed for Chapter 7 bankruptcy in an attempt to protect against their personal assets. However, his bankruptcy discharge did not relieve the Client's personal guarantee liability for the SBA debt. The SBA lender opted to pursue the SBA 7(a) Guaranty and subsequently assigned the loan and the right to enforce collection against the Client to the SBA. The Client then received the SBA Official 60-Day Notice. After conducting a Case Evaluation with her, she then hired the Firm to respond and negotiate on her behalf with just 34 days left before the impending referral to Treasury. The Client wanted to dispute the SBA’s alleged debt balance as stated in the 60-Day Notice by claiming the 7(a) lender failed to liquidate business collateral in a commercially reasonable manner - which if done properly - proceeds would have paid back the entire debt balance.  However, due to time constraints, waivers contained in the SBA loan instruments, including the fact the Client was not able to inspect the SBA's records for investigation purposes before the remaining deadline, Client agreed to submit a Structured Workout for the alleged balance in response to the Official 60-Day Notice as she was not eligible for an Offer in Compromise (OIC) because of equity in non-exempt income and assets. After back and forth negotiations, the SBA Loan Specialist approved the Workout proposal, reducing the Client's purported liability by nearly $142,142.27 in accrued interest, and statutory collection fees. Without the Firm's intervention and subsequent approval of the Workout proposal, the Client's debt amount (with accrued interest, Treasury's statutory collection fee and Treasury's interest based on the Current Value of Funds Rate (CVFR) would have been nearly $291,030.

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