Amid President Trump's proposal to dismantle the U.S. Department of Education, the SBA is slated to assume control of the nation's $1.6 trillion student loan portfolio, a move that shifts a critical financial responsibility into a politically charged environment.

Lawmakers are advancing legislation after a GAO report revealed that the Biden-era SBA failed to thoroughly investigate roughly 2 million alleged fraud cases in COVID aid programs, potentially diverting funds from legitimate small businesses.

The Trump administration’s effort to transfer student loan oversight from the Education Department to the SBA—despite the agency facing a 43% staff reduction—has raised concerns about its capacity to manage the complex system of borrowers and servicers, potentially jeopardizing support for affected consumers.

Under President Trump's directive, the Small Business Administration, traditionally focused on smaller-scale support, is set to take over a massive $1.6 trillion student loan portfolio. The move, announced on 2025-03-31, has sparked bipartisan concerns over SBA's capacity given its limited experience with complex student loan systems and simultaneous staff cuts.

President Trump's executive order to shift student loans from the Education Department to the SBA, combined with a 40% workforce cut at the agency, has raised alarms among experts and borrowers about the SBA's capacity to manage the student loan portfolio and safeguard consumer rights.

The U.S. Small Business Administration, in partnership with the Department of Defense, published the names of the first cohort of licensed investment funds under the SBICCT Initiative. This initiative aims to strengthen national and economic security by rigorously vetting funds that will invest in critical defense technologies, following a detailed due diligence and review process.

In 2023, OpenSecrets reported that 216 clients lobbied the Small Business Administration, indicating significant external political pressure on the agency. This exposure to extensive lobbying could potentially compromise the agency's decision making and reflects concerns about regulatory capture and undue influence from special interest groups.

On September 7, 2022, the U.S. Small Business Administration (SBA) collaborated with the U.S. Department of Labor (DOL), National Labor Relations Board (NLRB), and Federal Mediation and Conciliation Service (FMCS) to release a digital toolkit. The toolkit is designed to help small business employers navigate employee unionization efforts and foster constructive labor-management partnerships, reinforcing workers’ rights and collective bargaining.