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New SBA Administrator Kelly Loeffler’s Priorities under Trump 2.0

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New SBA Administrator Kelly Loeffler’s Priorities under Trump 2.0

SBA Administrator Kelly Loeffler recently outlined her vision for the agency in her “Day One” memo

Newly confirmed Small Business Administration (SBA) Administrator Kelly Loeffler recently outlined her vision for the agency in a “Day One” memo, underscoring significant changes that small business owners and stakeholders should know. From a “Made in America” agenda and a renewed focus on combating fraud to the reorganization of key SBA offices, these priorities signal a transformative era for America’s entrepreneurs. Below, we break down the main takeaways from Loeffler’s plan.

‘Made in America’ Agenda and Reorganized Offices

One of Loeffler’s leading initiatives is promoting U.S.manufacturing and rebuilding domestic supply chains. According to Fox News reporter Andrew Mark Miller, Loeffler is positioning the SBA as an essential partner in President Trump’s effort to strengthen American manufacturing industries and drive job growth (Source: FoxNews).

Office of Manufacturing and Trade: Formerly the Office of International Trade,this office will now focus on economic independence, fair trade practices, and championing U.S. manufacturing startups

Zero-Tolerance on Fraud and the Creation of a ‘Fraud Czar’

Loeffler’s memo commits the agency to a “zero-tolerance policy” regarding misuse of federal funds and outlines efforts to appoint a“Fraud Czar.” This initiative aligns with President Trump’s broader directive to eliminate government waste, including cooperation with the Department of Government Efficiency (DOGE).

Agency-wide Financial Audit: In the memo, Loeffler emphasizes the importance of improving the credibility of SBA financial statements, particularly regarding popular programs like 7(a) loans and the Small  Business Investment Company (SBIC) program (Source: Fox News).

How It Affects You

Small businesses, owner-officers and guarantors should be prepared for more stringent business closure reviews, audits and screening processes for SBA loan programs.

Ensuring compliance with all relevant SBA regulations is paramount. Our seasoned attorneys can review your current SBA loans, financial records, and business practices in an effort to prepare and protect you from potential audits and civil fraud investigations - with particular emphasis for closed businesses that obtained and have defaulted on COVID EIDL Loans.

New Workplace Policies and Return to the Office

In line with President Trump’s executive order requiring federal employees to return to in-person work, Loeffler has announced an immediate end to remote work at the SBA’s headquarters. As Loeffler stated in a video shared on X (formerly Twitter), “about 90% of our employees are working from home” (Source: Kelly Loeffler, X VideoTranscription).

How It Affects You

While this change primarily impacts SBA operations, small businesses that rely on in-person consulting or direct contact with SBA representatives may see faster response times and improved customer service. However, any internal transformation can also lead to brief periods of transition. We can keep you informed of any potential backlogs or service delays as the SBA re-configures its workforce.

Restrictions on DEI Programs and Immigration Policies

Under Trump’s second-term directives, the federal government is eliminating many diversity, equity, and inclusion (DEI) initiatives, which also impacts the SBA’s approach to awarding grants, loans, and other forms of assistance.

Immigration  and SBA Assistance: Loeffler’s memo confirms the agency’s intent to ban illegal immigrants from receiving SBA support and to restrict “hostile foreign nationals” from accessing SBA resources (Source: Fox News).

Focus on Empowering Small Businesses

Despite these sweeping changes, the heart of Loeffler’s memo is about expanding opportunities for small businesses. From cutting regulations to improving cybersecurity resources, the SBA aims to refocus on its core mission of fueling economic growth.

Ending  Certain Voter Registration Activities: In an effort to return to “empowering job creators,” Loeffler plans to cease taxpayer-funded voter registration activities that were part of the previous Biden administration’s initiatives (Source: Fox News).

Relocating  Offices Outside of Sanctuary Cities: The agency is also looking to move certain SBA offices out of jurisdictions with sanctuary city policies, part of a broader emphasis on enforcing existing immigration laws.

Key Takeaways for Small Business Owners

  1. Stricter Oversight: Expect increased scrutiny of SBA loan applications and  resource allocation.
  2. Manufacturing Boost: Potential for new grants, contracts, and programs supporting  domestic production.
  3. Policy Shifts: Workplace, DEI, and immigration-related changes will affect  how businesses interact with the SBA.
  4. Fraud  Prevention Emphasis: Heightened audits and investigations require meticulous record keeping.

At Protect Law Group, we specialize in helping small businesses, owner/officers and guarantors navigate the ever-evolving landscape of SBA regulations and programs. Our Firm Attorneys can help with:

  • SBA Loan Default  and Compliance: Ensuring your applications or requests for SBA Offer in Compromise, Structured Workout or SBA Office of Hearings & Appeals litigation cases comply with SBA policies, procedure, and regulatory standards.
  • Business Closure Review/Audit Preparation and Defense: Responding to SBA investigations and financial audits.
  • Regulatory Guidance: Adapting your business strategy to the “Made in America” initiative.
  • Contract Negotiations: Securing advantageous terms regarding your SBA loan documents.

References

  • Andrew  Mark Miller. Trump's new SBA chief unleashes 'Day One' priorities to     transform agency into 'golden era of prosperity'. Fox News. Published     February 24, 2025.
  • Kelly Loeffler. X Video Transcription. Posted February 24, 2025.
  • Fox News Digital. Coverage of Senate Confirmation Hearings, January 28, 2025.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific guidance related to your unique situation, consult with a qualified attorney.

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.

$310,000 SBA 7A LOAN - SBA OIC TERM WORKOUT

$310,000 SBA 7A LOAN - SBA OIC TERM WORKOUT

Client personally guaranteed an SBA 7(a) loan for $100,000 from the lender. The SBA loan went into early default in 2006 less than 12 months from disbursement. The SBA paid the 7(a) guaranty monies to the lender and subsequently acquired the deficiency balance of about $96,000, including the right to collect against the guarantor. However, the SBA sent the Official 60-Day Due Process Notice to the Client's defunct business address instead of his personal residence, which he never received. As a result, the debt was transferred to Treasury's Bureau of Fiscal Service where substantial collection fees were assessed, including accrued interest per the promissory note. Treasury eventually referred the debt to a Private Collection Agency (PCA) - Pioneer Credit Recovery, Inc. Pioneer sent a demand letter claiming a debt balance of almost $310,000 - a shocking 223% increase from the original loan amount assigned to the SBA. Client's social security disability benefits were seized through the Treasury Offset Program (TOP). Client hired the Firm to represent him as the debt continued to snowball despite seizure of his social security benefits and federal tax refunds as the involuntary payments were first applied to Treasury's collection fees, then to accrued interest with minimal allocation to the SBA principal balance.

We initially submitted a Cross-Servicing Dispute (CSD) challenging the referral of the debt to Treasury based on the defective notice sent to the defunct business address. Despite overwhelming evidence proving a violation of the Client's Due Process rights, the SBA still rejected the CSD. As a result, an Appeals Petition was filed with the SBA Office of Hearings & Appeals (OHA) Court challenging the SBA decision and its certification the debt was legally enforceable in the amount claimed. After several months of litigation before the SBA OHA Court, our Firm Attorney successfully negotiated an Offer in Compromise (OIC) Term Workout with the SBA Supervising Trial Attorney for $82,000 spread over a term of 74 months at a significantly reduced interest rate saving the Client an estimated $241,000 in Treasury collection fees, accrued interest (contract interest rate and Current Value of Funds Rate (CVFR)), and the PCA contingency fee.

$140,000 SBA 7(a) LOAN – PERSONAL GUARANTY LIABILITY | NEGOTIATED 50% SETTLEMENT

$140,000 SBA 7(a) LOAN – PERSONAL GUARANTY LIABILITY | NEGOTIATED 50% SETTLEMENT

Our firm successfully resolved an SBA 7(a) loan default in the amount of $140,000 on behalf of a husband-and-wife guarantor pair. The business had closed following a prolonged decline in revenue, leaving the borrowers personally liable for the remaining balance.

After conducting a comprehensive financial analysis and preparing a detailed SBA Offer in Compromise (SBA OIC) package, we negotiated directly with the SBA and the lender to achieve a settlement for $70,000 — just 50% of the outstanding balance. This settlement released the borrowers from further personal liability and allowed them to move forward without the threat of enforced collection.

$350,000 SBA 7A LOAN - NEGOTIATED STRUCTURED WORKOUT AGREEMENT

$350,000 SBA 7A LOAN - NEGOTIATED STRUCTURED WORKOUT AGREEMENT

Client personally guaranteed SBA 7(a) loan for $350,000. The small business failed but because of the personal guarantee liability, the client continued to pay the monthly principal & interest out-of-pocket draining his savings. The client hired a local attorney but quickly realized that he was not familiar with SBA-backed loans or their standard operating procedures. Our firm was subsequently hired after the client received the SBA's official 60-day notice. After back-and-forth negotiations, we were able to convince the SBA to reinstate the loan, retract the acceleration of the outstanding balance, modify the original terms, and approve a structured workout reducing the interest rate from 7.75% to 0% and extending the maturity date for a longer period to make the monthly payments affordable. In conclusion, not only we were able to help the client avoid litigation and bankruptcy, but our SBA lawyers also saved him approximately $227,945 over the term of the workout.

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