Ranking Member Edward J. Markey and seven Senate Democrats sent a letter on April 21 to Small Business Administration (SBA) Administrator Kelly Loeffler, criticizing the withholding of at least $55 million in Fiscal Year 2025 funding for small business counseling and training programs. The lawmakers said the delay affects programs such as Small Business Development Centers, Women’s Business Centers, SCORE, and the State Trade Expansion Program, which all operate on a reimbursement basis.
The issue is important because these Entrepreneurial Development Programs provide essential support to America’s small businesses. Without timely payments from the SBA for services already provided, many organizations may struggle to continue their work supporting entrepreneurs.
In their letter, the senators 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 also stated: “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.”
They requested answers from Administrator Loeffler by April 30 regarding when outstanding reimbursements would be paid out and when remaining FY25 funding would be obligated for several technical assistance programs. They also sought details about recent staffing reductions at the agency after Loeffler told media she had cut headcount by more than half in her first year.
The Senate Small Business and Entrepreneurship Committee supports informed decision-making on national fiscal priorities according to its official website. It offers Congress comprehensive policy options related to federal budget components according to its official website.
Additionally,the committee features Lindsey Graham as chairman and Jeff Merkley as ranking member. The committee contributes resolutions and reconciliation instructions during congressional budget processes according to its official website, was established through legislation passed in 1974 according to its official website, and provides nonpartisan budgetary analysis through oversight over agencies like the Congressional Budget Office according to its official website.
Markey was joined by Senators Adam Schiff (California), Cory Booker (New Jersey), Christopher A. Coons (Delaware), Mazie Hirono (Hawaii), Jeanne Shaheen (New Hampshire), Jacky Rosen (Nevada), and Raphael Warnock (Georgia). Lawmakers await responses from Administrator Loeffler regarding both past actions taken by her office as well as plans going forward.
