Administrator Loeffler told the committee she launched a “full scale reorganization” at the SBA to strengthen oversight, reinstate underwriting standards and restore lender fees, saying the moves were needed to stop what she described as earlier “sloppy underwriting.” She also said the agency had implemented identity and citizenship verification protocols to reduce fraud.

Loeffler told senators the agency canceled contracts that produced “total savings of more than $3,000,000,000” and said the SBA was returning staff and resources to its 68 district offices. She told the committee the agency had reduced headcount by roughly 43% and later quantified that as “roughly 2,700 staff reductions.”

Why it matters: committee members pressed whether the SBA can expand or implement new manufacturing and veteran programs while shrinking the agency’s workforce, and whether underwriting changes will keep the agency’s lending programs solvent without reducing access to credit for qualified small businesses.

Senators’ concerns and agency responses
- Several senators, including Hirono and Shaheen, asked for concrete headcount numbers, questioned the timeline for refilling needed positions, and flagged potential regional capacity shortfalls if district offices lose staff.
- Administrator Loeffler told the committee the SBA is a “public‑private partnership” that relies on more than 1,000 private lenders to deliver loans and that the agency’s reorganization restores field presence after pandemic‑era consolidation.
- Loeffler said the agency has 400 disaster assistance specialists in the field for disasters and asserted the 7(a) program has been re‑aligned to “0 subsidy” performance targets and that higher‑end manufacturing loans historically perform well because lenders have “skin in the game.”

What remained unresolved
Senators asked for more granular numbers and timelines on restorations of district‑office staffing, and at least one senator asked whether voluntary retirements and hiring restrictions would be revisited to restore capacity; Loeffler committed to continued dialogue with members and to provide follow‑up information.

Ending note
The hearing recorded broad support for improved oversight of SBA lending but persistent concern from members that the agency must maintain field capacity to deliver loans, counseling and disaster support while pursuing reforms and new initiatives.