Theannouncementexplained that the agency will reduce its workforce by 43%. The reduction and restructuring will bring the SBA from 6,500 employees back to 2,700 staff members, the same as pre-pandemic levels. They will reduce the workforce through voluntary resignations, expiration of the COVID-19 era and other term appointments, and a reduction in the force.
According to the press release, “key features of SBA’s reorganization include:
Promoting business formation and growth by shifting resources to expand capital formation functions and personnel, removing the emphasis from partisan programs of the past.
Prioritizing risk management and fraud prevention by centralizing these functions within the Office of the Chief Financial Officer, in the effort to restore integrity to agency programs, audits, and financial statements.
Expanding disaster response support by transferring disaster loan servicing functions and additional personnel into the Office of Disaster Recovery and Resilience. Additionally, the agency will cross-train field office personnel to support disaster recovery efforts.
Eliminating redundant pandemic-era positions associated exclusively with processing pandemic-era loans within the Office of Capital Access.
Ensuring that 30% of the agency is located in the field, by decentralizing services and working to better serve Main Streets across America.
Promoting veteran businesses and American manufacturing by preserving existing staffing levels within the Office of Veterans Business Development and the Office of Manufacturing and Trade.
Exempting key accountability offices from reductions at this time including the Office of Advocacy and the Office of the Inspector General.”
We will keep you informed as we receive more information about the reorganization in the coming weeks.
