Oversight Hearing – U.S. Small Business Administration

The House Appropriations Committee held an oversight hearing on July 14, 2026, focused on the U.S. Small Business Administration (SBA) budget and operations. Administrator Kelly Loeffler testified about efforts to restore fiscal discipline, improve program integrity, and modernize SBA operations following issues under the prior administration, including fraud in COVID-era loans and mismanagement of grant funds. Key procurement-related topics included reforms to the 8(a) business development program, particularly tribal participation and contract eligibility audits, and the termination of wasteful contracts totaling $3.3 billion. The committee discussed SBA's loan programs, including the 7(a) and 504 loans, with emphasis on rural lending and support for small manufacturers. Members raised concerns about delays in disbursing appropriated entrepreneurial development funds, SBA's reorganization and office closures, and the impact of tariffs on small businesses. Administrator Loeffler committed to improving transparency, restoring accountability, and ensuring appropriated funds are obligated timely. The hearing also addressed disaster loan program funding and SBA's partnership with USDA to support rural businesses. Several members requested reports on tariff refund distribution and fraud prosecutions. Overall, the hearing highlighted SBA's efforts to enhance procurement integrity, improve capital access, and better serve small businesses while addressing past program weaknesses.