Small Business Owners Struggle Amid Trump Administration’s Federal Cost-Cutting Efforts and Loan Approval Claims
Small business contractor Laura Pager, president of Gale Construction Company in Illinois, expressed skepticism after Small Business Administrator Kelly Loeffler announced that her agency guarantees approximately 2,000 small business loans every week. This statement came during an event hosted by GOP Sen. Joni Ernst at Iowa State University aimed at helping small businesses and entrepreneurs learn about federal contracting opportunities under the Trump administration.
Pager, who has lost out on millions of dollars in work this year due to federal government cuts, attended the event from the third row alongside Loeffler and Environmental Protection Agency Administrator Lee Zeldin. Pager stated that she was unaware of the 2,000 small businesses receiving approval for loans each week, as her own business had not been among them.
According to SBA spokesperson Maggie Clemmons, since January 2025, the SBA has approved 46,430 504 and 7(a) loans totaling over $24 billion, along with 25,032 disaster loans worth $3.8 billion. This equates to nearly 2,500 loans per week.
The event took place as the Republican party works to promote President Donald Trump’s ambitious agenda during Congress’ month away from Washington. The administration’s efforts, which include Trump’s unprecedented federal workforce overhaul and historic cuts to social safety net programs, have faced resistance from the public.
In her nearly three decades of experience, Pager has not witnessed a business environment as challenging as the current one for small businesses. She has lost approximately $6 million in work this year due to the Department of Government Efficiency pulling contracts as part of its federal cost-cutting efforts. These contracts included securing a federal building in Pittsburgh that houses the Internal Revenue Service and Army Corps of Engineers, as well as fixing the HVAC at an airport control tower in Maine. Pager also noted that her usual SBA contact, a region-based business opportunity specialist, had retired without being replaced.
The event underscored the competing realities for small businesses trying to navigate the Trump administration. While Trump and his Cabinet seek to promote business growth and highlight the president’s legislative achievements, their efforts to downsize the federal government have left some business owners questioning how to navigate a changing landscape.
Agency heads and GOP lawmakers are tasked with justifying why small businesses should partner with their agencies despite calls for federal spending cuts. In Iowa this week, they sought to frame the debate around the benefits of decentralizing government services and providing opportunities for local workers.
Charlie Smith, director of the Department of Energy’s Office of Small and Disadvantaged Business Utilization, acknowledged that creating connections between small businesses and opportunities in the federal government has long been a challenge. However, he suggested that initiatives under the current administration are working to address this issue.
Loeffler, Zeldin, and Ernst argued that the Biden administration had mismanaged small business development but highlighted their own efforts to eliminate perceived waste and reduce government intervention in the private sector. They pointed to tax breaks for businesses, such as allowing full and immediate deductions for building new manufacturing facilities, as well as lower inflation rates and investments in artificial intelligence hubs like Pennsylvania.
Ernst, who chairs the Committee on Small Business and Entrepreneurship, introduced bipartisan legislation aimed at increasing the maximum loan limit for small businesses to boost domestic manufacturing. The bill is expected to receive a final vote when the Senate returns in September.
At the event, Iowa GOP Rep. Randy Feenstra addressed a crowd of small business leaders and entrepreneurs, emphasizing the benefits of Trump’s tax and spending cuts law. While some attendees found the officials’ messages compelling, others expressed concerns about environmental regulations, the elimination of renewable energy tax credits, and the impact on existing businesses.