WASHINGTON, D.C. — The U.S. Small Business Administration is reorganizing its internal operations following a workforce reduction of more than 50% last year, a move the agency says is intended to centralize administrative functions, reduce duplication, and lower operating costs.
The restructuring consolidates key functions including information technology, human resources, legal services, financial management, and disaster operations under specialized offices. According to the agency, the changes are designed to streamline decision-making, standardize processes, and improve coordination across government operations.
The reorganization comes after a broader effort to reduce spending and shrink the agency’s footprint. The SBA reported cutting approximately $300 million in annual spending during 2025, terminating or pausing more than 120 contracts, consolidating nearly half of its office leases, and reducing its operating budget by 33%.
SBA Administrator Kelly Loeffler framed the changes as part of an effort to redirect resources away from internal administrative layers and toward service delivery.
“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,” Loeffler said. “This reorganization builds on that progress to create a stronger, modernized, and efficient SBA.”
Under the restructuring plan, disaster-related functions will be centralized within the Office of Disaster Recovery. Data analysts, economists, grants management personnel, and acquisition professionals will be consolidated under the Office of the Chief Financial Officer.
Information technology operations will be centralized under the Office of the Chief Information Officer, while human resources functions will move under the Office of the Chief Human Capital Officer. Attorneys and paralegals will be consolidated within the Office of General Counsel.
The agency is also formally establishing a Faith Office and an Office of Rural Affairs. Those offices will focus on outreach and service delivery to faith-based organizations, rural small businesses, and domestic manufacturers.
The SBA described the restructuring as a continuation of its broader effort to eliminate redundancies, standardize operations, and strengthen oversight of taxpayer-funded programs while maintaining support for small businesses and disaster recovery efforts.
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