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 to help with a relative’s new business venture. After the business failed, Treasury was able to secure a recurring Treasury Offset Program (TOP) levy against his monthly Social Security Benefits based on the claim that he owed over $1.2 million dollars. We initially submitted a Cross-Servicing Dispute, but then, prepared and filed an Appeals Petition with the SBA Office of Hearings and Appeals (SBA OHA). As a result of our efforts, we were able to convince the SBA to not only terminate the claimed debt of $1.2 million dollars against our client (without him having to file bankruptcy) but also refund the past recurring amounts that were offset from his Social Security Benefits in connection with the TOP levy.
The client personally guaranteed an SBA 7(a) loan for $150,000. His business revenue decreased significantly causing default and an accelerated balance of $143,000. The client received the SBA's Official 60-day notice with the debt scheduled for referral to the Treasury’s Bureau of Fiscal Service for aggressive collection in less than 26 days. We were hired to represent him, respond to the SBA's Official 60-day notice, and prevent enforced collection by the Treasury and the Department of Justice. We successfully negotiated a structured workout with an extended maturity date that included a reduction of the 14% interest rate and removal of substantial collection fees (30% of the loan balance), effectively saving the client over $242,000.
Client personally guaranteed SBA 7(a) loan balance of over $150,000. Business failed and eventually shut down. SBA then pursued client for the balance. We intervened and was able to present an SBA OIC that was accepted for $30,000.
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