Administrator Loeffler says SBA will move regional offices out of ‘sanctuary’ jurisdictions; members raise access concerns

Administrator Kelly Loeffler told the House Small Business Committee that the SBA has begun relocating some offices out of jurisdictions the administration described as refusing to enforce federal immigration law. In her opening testimony she said the agency had “begun relocating SBA offices out of sanctuary cities that refused to enforce federal immigration law.”

Multiple committee members from large cities pushed back, saying moving district or regional offices could reduce access to counseling and technical assistance for urban small businesses that rely on nearby offices and federal buildings that are reachable by public transit. Representative Cisneros asked directly whether the New York City Federal Plaza office was closed; Loeffler replied the office was still open and that she would provide a current list of operating offices.

Why it matters: committee members said many small businesses—particularly in dense metropolitan markets—use nearby SBA district offices or partner counseling centers for in‑person assistance, multilingual help and technical assistance. Representatives from New Jersey, New York and California warned that removing local SBA staff or closing offices could make it harder for minority‑ and immigrant‑owned businesses and for small firms that depend on public transit to access services.

Committee requests and unanswered details: Members repeatedly asked the administrator for a list of specific offices that have 0 or 1 employees, and for the staffing levels at offices that might be moved. Loeffler said her team would supply the list but did not provide it at the hearing. Members also sought assurances that services currently provided through district offices would continue through Small Business Development Centers and other local partners; Loeffler said the agency is “streamlining” and relies on SBDCs and partner networks for delivery.

The broader dispute: some members tied office relocation to public‑safety concerns; others framed it as an access and equity issue. Representative Cisneros and others said moving offices out of major metropolitan areas could disproportionately harm minority‑owned and language‑diverse businesses. Loeffler framed the office moves as part of a broader effort to focus SBA resources on small business service delivery and to avoid “politicized” partnerships.

Next steps: committee staff requested a full, itemized list of field offices, headcounts and reorganization plans. Members said they will review the list when it is produced and may conduct further oversight depending on the agency’s response.