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Lawmakers press SBA witness over staffing cuts, office relocations and withheld grant payments
Summary
Committee members pressed Associate Administrator Lisa Shimcad about reported staffing declines, the relocation of district/regional offices (cited as moves out of 'sanctuary cities'), and withheld or paused payments to resource partners, including SCORE and SBDCs; Shimcad said payments are handled by a different SBA office.
Members of the House Small Business Committee used a June 4, 2025 hearing to press the SBA’s Office of Field Operations on staffing and funding decisions that, lawmakers say, are disrupting local support for entrepreneurs.
Ranking Member Velasquez told the Committee "the number of employees in the field dropped 27% in the first nine months of 2025" and alleged that the agency had "withheld $10 million to SCORE which hasn't received reimbursement since last March." She pressed the witness to commit to raising the problems with agency leadership and sought letters and documents to be entered in the record.
Associate Administrator Lisa Shimcad repeatedly told members that grant‑payment decisions and concerns about SCORE, SBDCs and STEP grants fall under the SBA’s Office of Entrepreneurial Development, not the Office of Field Operations. "I am here today to talk about the office of field operations and what you're talking about is within the office of entrepreneurial development," Shimcad said in response to repeated funding questions.
Other members pressed the witness on office relocations. Several representatives asked how moving district or regional offices outside of urban centers would preserve access for small businesses in communities such as Prince George’s County or the New York metro area. Shimcad defended relocations on employee‑safety and accessibility grounds, citing examples including a Portland incident where an employee "was able to run into our office and lock the door and hide" after an unwelcome elevator encounter.
What lawmakers requested: Multiple members asked for prompt written follow‑up and supporting documentation on staffing figures, withheld payments, and the process and criteria used to relocate offices. The Committee entered letters into the record and gave the witness time to respond in writing.
Why it matters: Resource partners such as SCORE and Small Business Development Centers provide no-cost counseling, training and export assistance to thousands of entrepreneurs. Lawmakers warned delayed payments could interrupt services and pressed SBA and the Committee for clarity on roles inside the agency.
