The U.S. Small Business Administration will pull regional offices out of cities with immigrant-friendly policies like Denver, one of several changes new SBA Administrator Kelly Loeffler detailed in a “Day One” memo on Monday.
“To better serve Main Streets across America, especially in rural areas, SBA will relocate regional offices currently based in sanctuary cities to less costly, more accessible locations in communities that comply with federal immigration law,” the memo states.
Denver is home to the SBA’s Region VIII, which covers Colorado, Wyoming, Montana, Utah, North Dakota and South Dakota. Denver Mayor Mike Johnston has been an early and vocal opponent of the administration’s immigration policies, making a relocation likely.
The Colorado District Office, established in 1953, is in the federally-owned U.S. Customs House at 721 19th St. That makes the impact of a departure on the city’s oversupplied office market more limited compared to the departure of a federal tenant in leased space.
SBA offices are also instructed to comply with several other administration priorities, including all full-time staff returning to the office, elimination of the SBA’s Office of Diversity, Equity, Inclusion, and Accessibility; a pause to the Green Lender Initiative; and pausing all grants that “do not comply with President Trump’s executive orders.”
Some of the other priorities that Loeffler laid out are:
- Eliminating unnecessary regulations that complicate obtaining SBA assistance, improving customer service and reducing the set aside for disadvantaged businesses under the 8(a) contracting program from 15% to 5%.
- A “Made in America” agenda to promote scaling innovative manufacturing and technology startups in the U.S. and a rebranding of the Office of International Trade into the Office of Manufacturing and Trade.
- Conducting an agency-wide financial audit to address delinquencies, defaults, and charge-offs on various loan programs and reviving the agency’s dormant collection programs.
- Restricting “hostile foreign nationals” from accessing SBA assistance, especially those with ties to the Chinese Communist Party, and barring anyone without proper authorization to live in the country from obtaining SBA assistance.
- A zero-tolerance policy against fraud, including the establishment of a Fraud Working Group and the appointment of a Fraud Czar to “identify, stop, and claw back criminally obtained funds on behalf of American taxpayers – working across agencies to prevent fraud.”
The SBA Office of Inspector General estimates that more than $200 billion, or about 17% of the $1.2 trillion administered through the Paycheck Protection Program (PPP) and COVID-19 Economic Injury Disaster Loan (EIDL) loan programs was obtained via fraud. The U.S. Attorney’s Office for Colorado has been a leader in chasing down cases of SBA Fraud.
“From day one, we will uphold the highest standards of accountability, performance, and integrity, where taxpayer dollars will be safeguarded, not squandered. We will streamline operations, drive efficiency, and ensure programs deliver real results,” Loeffler said.
The SBA works with participating lenders, guaranteeing them repayment on loans that are otherwise difficult to underwrite and it also provides emergency assistance to help small businesses stay afloat during a disaster. In Colorado, the SBA issued 1,798 loans under its 7(a) program worth $936.7 million last fiscal year.