Ranking Member Markey, Senate Democrats Condemn Trump SBA’s Obstruction of Small Business Programs

SBA withholds at least $55 million in 2025 funding for key small business programs

Letter (PDF)

(Washington, April 21) - Ranking Member Edward J. Markey (D-Mass.), along with seven Senate Democrats, sent a letter to Small Business Administration (SBA) Administrator Kelly Loeffler decrying the Trump SBA's withholding of at least $55 million dollars in Fiscal Year 2025 (FY25) funding for essential small business counseling and training programs. Entrepreneurial Development Programs (EDPs) such as Small Business Development Centers (SBDCs), Women's Business Centers (WBCs), SCORE, and the State Trade Expansion Program (STEP) all operate on a reimbursement basis, meaning the SBA is withholding payment for services these critical programs have already provided to America's small businesses.

In the letter, the lawmakers wrote, "President Trump may delight in not paying workers, but it is unacceptable for SBA to follow his playbook. SBA has repeatedly blamed the funding delays on programmatic reviews of every EDP. When asked for documentation, rationale, or results of those reviews, SBA staff have been unable to provide any supporting materials. As SBA Administrator, you are responsible for ensuring that appropriated funds are expeditiously directed to their intended programmatic functions. Using unwarranted reviews, IT upgrades, or politically motivated investigations to justify delaying appropriated funds is a gross dereliction of duty and a potential violation of the Impoundment Control Act of 1971."

The lawmakers continued, "Historically, SBA's EDPs have enjoyed bipartisan support in Congress and across presidential administrations, reflecting their proven value to small businesses nationwide. The Trump administration's hostile attitude toward its entrepreneurial ecosystem, while not surprising, is disappointing. During your confirmation hearing, you vowed to "restore the accountability and transparency taxpayers deserve." We ask you to honor that pledge by releasing delayed EDP funds, ending the Grant Solutions reimbursement pause, and stopping the political targeting of SBA programs."

The lawmakers requested answers to the following questions by April 30, 2026:

1. Please provide the date on which SBA will fulfill all outstanding reimbursement requests for its EDPs, including the WBC, SBDC, SCORE, STEP, and Veterans Business Outreach Centers (VBOC).
2. Please provide the date on which SBA will obligate the remaining FY25 funding to its PRIME technical assistance program, STEP, and cybersecurity for small businesses pilot program.
3. Please provide the results of any programmatic or financial reviews SBA has performed of its 16 EDPs, including:

1. Any internal or external rationale SBA used or provided to grantees to justify financial or performance reviews conducted since January 20, 2025.
2. Any guidance provided to SBA grantees or partner organizations before, during, or after the reviews conducted since January 20, 2025.
3. Any internal or external findings from individual program reviews, specifically for the STEP, SBDC, WBC, SCORE, and VBOC programs, generated since January 20, 2025.
4. The timeline for each individual EDP review conducted since January 20, 2025, through the date of your response, including notification dates, start dates, end dates, and other relevant milestones.
5. The contact information for each individual SBA employee who participated in or oversaw each review conducted since January 20, 2025, through the date of your response.

1. On March 11, 2026, you told the New York Post: "I cut headcount by 54% in the first year."

1. How has this reduction in staff affected SBA's ability to promptly reimburse SBA's EDPs, particularly STEP and SCORE?
2. If reductions in staff are not the cause, what is responsible for these substantial delays?

1. How many EDP grant managers did SBA employ on January 19, 2025, and how many does SBA currently employ?
2. Why is the reimbursement function in Grant Solutions the only function unavailable during the IT system upgrade?
3. What specific work is being performed in Grant Solutions that requires a 90-day-or longer-shutdown of the grant reimbursement system?

Ranking Member Markey was joined on the letter by Senators Adam Schiff (D-Ca.), Cory Booker (D-N.J.), Christopher A. Coons (D-Del.), Mazie Hirono (D-Hawaii), Jeanne Shaheen (D-N.H.), Jacky Rosen (D-Nev.), and Raphael Warnock (D-Ga.).

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Permalink: https://www.sbc.senate.gov/public/index.cfm/2026/4/ranking-member-markey-senate-democrats-condemn-trump-sba-s-obstruction-of-small-business-programs