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
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.
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.
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).
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.
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:
References
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.
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
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
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.
Client's small business obtained an SBA COVID EIDL for $301,000 pledging collateral by executing the Note, Unconditional Guarantee and Security Agreement. The business defaulted on the loan and the SBA CESC called the Note and Guarantee, accelerated the principal balance due, accrued interest and retracted the 30-year term schedule.
The loan was transferred to the Treasury's Bureau of Fiscal Service which resulted in the statutory addition of $90,000+ in administrative fees, costs, penalties and interest with the total debt now at $391.000+. Treasury also initiated a Treasury Offset Program (TOP) levy against the client's federal contractor payments for the full amount each month - intercepting all of its revenue and pushing the business to the brink of bankruptcy.
The Firm was hired to investigate and find an alternate solution to the bankruptcy option. After submitting formal production requests for all government records, it was discovered that the SBA failed to send the required Official 60-Day Pre-Referral Notice to the borrower and guarantor prior to referring the debt to Treasury. This procedural due process violation served as the basis to submit a Cross-Servicing Dispute to recall the debt from Treasury back to the SBA and to negotiate a reinstatement of the original 30-year maturity date, a modified workout, cessation of the TOP levy against the federal contractor payments and removal of the $90,000+ Treasury-based collection fees, interest and penalties.
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.
Clients personally guaranteed SBA 7(a) loan balance of over $300,000. Clients also pledged their homes as additional collateral. SBA OIC accepted $87,000 with the full lien release against the home.
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