WASHINGTON – Today, Representatives Nydia M. Velázquez (D-NY), Ranking Member of the House Small Business Committee, and Derek Tran (D-CA), Ranking Member of the Subcommittee on Oversight and Investigations, sent a letter to the Small Business Administration (SBA) demanding answers about the abrupt termination of SBA employees. Their inquiry follows a series of confusing and contradictory communications from the agency, including erroneous termination notices that were later reissued.
In the letter, the lawmakers express serious concerns about the legal and operational consequences of these staff cuts. According to reports, hundreds of probationary employees were informed that their employment would be terminated, despite previously receiving positive performance reviews.
“Not only is this confusing and mean-spirited for the employees, but these actions are harmful to services provided to small businesses. Termination of SBA’s small workforce would have a significant and adverse effect on the SBA and the services it currently provides to small businesses,” the lawmakers wrote.
The letter also highlights deep concerns about a newly issued executive order, “Donald J. Trump Works to Remake America’s Federal Workplace,” which directs agencies to implement sweeping workforce reductions. Lawmakers warn that these cuts, particularly within the SBA, could have devastating consequences for entrepreneurs who rely on the agency’s support.
“SBA’s programs have proven effective time and time again. The agency is structured to meet small businesses where they are and offers contracting, counseling, and access to capital opportunities to help entrepreneurs launch and grow their firms. Small businesses are the backbone of our economy, creating jobs, stimulating innovation, and supporting the local tax base, and they rely on SBA’s support. These unprecedented cuts to the agency will reverberate throughout the economy and ultimately harm our nation’s 34 million small businesses,” the lawmakers continued.
The lawmakers are requesting detailed information from the SBA, including a list of terminated employees, the legal basis for their firings, and any internal communications surrounding the decision-making process.
For a full copy of the letter, click here.
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