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 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.
Client personally guaranteed SBA 7(a) loan balance of $58,000. The client received a notice of Intent to initiate Administrative Wage Garnishment (AWG) Proceedings. We represented the client at the hearing and successfully defeated the AWG Order based on several legal and equitable grounds.
Our firm successfully resolved an SBA COVID-19 Economic Injury Disaster Loan (EIDL) in the original amount of $150,000 for a Florida-based borrower. The loan, issued on June 4, 2020, was secured by business assets and potential personal liability through the SBA's Security Agreement.
Following the permanent closure of the business, we guided the client through the SBA’s Business Closure Review process and prepared a comprehensive collateral analysis. We negotiated directly with the SBA, obtaining a full release of the business collateral for $2,910 — satisfying the borrower’s obligations under the Security Agreement and eliminating any further enforcement risk against the pledged assets.
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