Agency Says Changes Will Reduce Redundancies, Increase Accountability
(UCBJ) – The U.S. Small Business Administration has announced an agency-wide reorganization designed to modernize its organizational structure, improve operational efficiency and strengthen accountability to taxpayers.
According to the SBA, the restructuring aligns employees around departmental expertise and management while reducing duplication in areas such as technology, finance and human resources. The agency says the changes will improve coordination, reduce unnecessary overhead and strengthen its ability to serve small businesses, disaster survivors and taxpayers.
“The American people deserve an SBA that holds itself to the standards held by the small businesses we serve – with a relentless focus on quality, service levels, and efficiency,” said SBA Administrator Kelly Loeffler. “Last year, after reducing agency headcount by over fifty percent and returning to full-time, in-office work, the SBA delivered record capital to small businesses. We restored the agency to its founding mission, took decisive action to cut waste, fraud, and abuse, and rebuilt the agency’s operational and financial accountability. This reorganization builds on that progress to create a stronger, modernized, and efficient SBA that is better positioned to serve entrepreneurs, job creators, and disaster survivors while safeguarding taxpayer dollars.”
The SBA said the reorganization will shift the agency’s focus away from layers of internal bureaucracy and toward performance and service delivery. Officials say consolidating functions under expertise-focused offices will help eliminate internal silos, standardize processes and improve resource efficiency.
Among the changes, the SBA will centralize disaster-related functions within the Office of Disaster Recovery, data analysts and financial management professionals within the Office of the Chief Financial Officer, information technology staff within the Office of the Chief Information Officer, human resources personnel within the Office of the Chief Human Capital Officer and attorneys and paralegals within the Office of General Counsel.
The agency said the restructuring is intended to improve coordination, accelerate decision-making, streamline operations and reduce costs across the organization.
New Offices Focus On Rural And Faith-Based Communities
As part of the reorganization, the SBA is formally establishing the Faith Office and the Office of Rural Affairs. According to the agency, the new offices are intended to improve service delivery to faith-based communities, rural small businesses and domestic manufacturers.
The SBA said the move reflects its broader effort to create a more mission-focused agency while expanding outreach to underserved business communities.
Reorganization Builds on Cost-Cutting Efforts
The agency said the reorganization follows a series of cost-cutting measures implemented in 2025. According to the SBA, the agency reduced its workforce by more than 50%, cut approximately $300 million in annual spending, terminated or paused more than 120 contracts, consolidated nearly half of its leases and reduced its operating budget by 33%.
Officials say the latest changes continue those efforts by eliminating redundancies and reducing wasteful spending while improving service delivery and accountability.
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