DOGE's Gutting of SBA Threatens Crisis for Main Street Entrepreneurs
FOR IMMEDIATE RELEASE
February 12, 2025
CONTACT
press@mainstreetalliance.org
DOGE's Gutting of SBA Threatens Crisis for
Main Street Entrepreneurs
The move comes as rising inflation and tariff threats inject uncertainty into local economies.
Washington, D.C. — In an unprecedented and reckless move, the Department of Government Efficiency (DOGE), led by billionaire Elon Musk, gutted the Small Business Administration (SBA), slashing hundreds of critical staff positions. The move has sparked outrage amongst small business owners and Main Street advocates who warn of the devastating consequences for entrepreneurs who rely on the SBA for capital, disaster relief and mentorship.
“These cuts mean shuttered storefronts, lost jobs, and local economies in free fall—plain and simple. We’re not going to stand by while this administration steamrolls the small businesses that drive our communities. Main Street Alliance and our 30,000+ members are fighting back. We’re mobilizing across the country, demanding that lawmakers reverse these cuts, restore SBA funding, and put Main Street first. If they refuse, we’ll make sure every small business owner knows exactly who sold them out,” said Richard Trent, MSA Executive Director.
The effects of these cuts will be felt fast by the thousands of entrepreneurs who engage with SBA on a daily basis—hitting veterans, women and Black and Latino entrepreneurs especially hard. Small business owners should expect:
Longer wait times for small business loan approvals jeopardize the survival of local entrepreneurs.
Reduced disaster assistance for small businesses devastated by hurricanes, wildfires, and other crises.
Weakened support for government contractors, leaving small firms unable to compete for federal contracts.
And fewer technical resources for historically underrepresented business owners who already face systemic barriers to funding.
A Manufactured Crisis That Pushes Us Toward a Main Street Recession
Today’s inflation report sent markets tumbling. Combined with reckless tariff policies, a federal hiring freeze, and the chaos unfolding across government, these cuts to the SBA are the latest sign that Main Street is being pushed toward an economic crisis. The administration is playing a dangerous game with the livelihoods of America’s job creators.
Meanwhile, former Sen. Kelly Loeffler is on deck to take over as SBA Administrator. As she takes on this new role we urge her to push back against these cuts to SBA and hold the line for Main Street.
Main Street Alliance is calling on Congress and the administration to intervene immediately and restore SBA staffing levels to prevent widespread harm to small businesses.
"We cannot allow the fate of America’s entrepreneurs to be determined by billionaire whims," added MSA’s Executive Director, Richard Trent. "This decision must be reversed before it cripples Main Streets across the country."
MSA urges small business owners and allies to contact their representatives and demand immediate action to protect the SBA.
For media inquiries or to speak with small business owners impacted by this decision, please contact: press@mainstreetalliance.org
About Main Street Alliance
The Main Street Alliance champions the voices of small business owners to create a thriving economy. We cultivate a network of entrepreneurs, connecting them with resources to build sustainable enterprises. Our membership drives state and federal policymaking that gives a fair shot to small businesses and strengthens communities nationwide. Through meaningful engagement and research-backed advocacy, we are building a coalition of citizens and elected leaders committed to giving entrepreneurs a fair shot at success.
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