SBA Administrator Loeffler defended the agency's fiscal 2026 discretionary budget request and a broad reorganization at a Senate Appropriations Subcommittee hearing, telling senators the changes will streamline operations and put more resources into local district offices.

Loeffler said the proposal "reflects our agency's return to its mission with a clear strategy, streamline services, eliminate waste, and ensure every taxpayer dollar delivered measurable results for America's small businesses and taxpayers." She told the subcommittee the reorganization moves resources from Washington back into the field and seeks to restore underwriting standards and fiscal controls.

The discussion mattered because lawmakers said proposed cuts and program changes could affect counseling, grants and outreach that small businesses rely on. Ranking Member Reid said the subcommittee had not been briefed after the SBA announced it would reduce its workforce by 43% and pressed for more responsiveness from the agency. "We were a bit, troubled when SBA didn't bother to brief the subcommittee staff following its March 21 announcement that it would be slashing the agency's workforce by 43%," Reid said.

Most important facts first: Loeffler gave numerical details about programs and portfolio size contained in the hearing record. The transcript states the SBA's initial budget request "proposes total funding of 600,000,000 in 2026"; that in the current fiscal year "the SBA will guarantee approximately $72,000,000,000 in business loans"; the 504 program will provide "another 16,000,000,000"; the Small Business Investment Company program will support "6,000,000,000" in private investment capital; and a secondary markets guarantee program would provide a "$15,000,000,000 backstop." Loeffler also said the agency canceled wasteful contracts to yield "total cost savings of more than $3,000,000,000."

Lawmakers pressed where savings and service changes would show up locally. Senators and subcommittee members asked whether consolidations would reduce delivery of counseling and training provided through partner networks such as the 1,000 Small Business Development Centers and SCORE volunteers. Senator Fisher and others highlighted SCORE's role and congressional funding levels, and asked how the program would be supported under the reorganization.

Loeffler described a reorientation of program priorities, including reinstating lender fees and restoring underwriting standards in core loan programs, saying the safeguards ensure the programs operate at "0 subsidy for taxpayers." She said reforms have coincided with higher loan volumes: in the record she noted SBA loan approvals "have skyrocketed by 80% compared to the same time under the last administration," and loans to the smallest firms "have nearly doubled."

Members raised specific concerns about program cancellations and grant freezes. Vice Chair Murray questioned why a $2.5 million regional innovation cluster contract in Washington state was canceled and asked how the agency would decide which clusters to retain. Loeffler said the agency is "undertaking a review of those programs to right size them and form them to where the needs are most urgent," and that a new regional innovation cluster focused on manufacturing had been announced.

The hearing also included exchanges about veterans outreach, disaster response, and other programs that intersect with the budget and staffing decisions. Loeffler asserted the administration's commitment to veteran entrepreneurs and described plans to use district offices, SBDCs and procurement center representatives to expand outreach. On disaster assistance, she said SBA teams were "already actively evaluating" damage assessments and that an SBA declaration can be made independently of FEMA when warranted.

Subcommittee procedure and follow-up: the chair set a deadline for questions for the record. The transcript records that "members will have 1 week to submit questions for the record, due May 28," and requests responses from the SBA office.

Ending note: senators from both parties pressed for more granular budget documents and for responsive follow-up; Loeffler said a fuller budget would be provided to the panel in the coming weeks and welcomed additional oversight and collaboration.