During a House Small Business Committee hearing, Rep. LaMonica McIver (D-NJ) questioned Small Business Administrator Kelly Loeffler about spending cuts and priorities at the SBA.
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00:00Thank you chairman and ranking member for convening this hearing today and thank you to the administrator for being here with us finally. We've been waiting for months for you to get here. I do agree it is a new day at the SBA, a new depressing day. Since this administration began we have heard almost non-stop concerns from small business owners fighting for their businesses' survivals.
00:23All while the SBA cuts staff plans to take on more than $1 trillion student loan portfolio and removes critical needed resources from communities across the country. Administrator, you should be working with us as well too on the Democratic side to support our small businesses. You mentioned you came to New Jersey. Next time give us a call. We'll love to be with you as well like our members across the aisle have been.
00:48I led several of my New Jersey and New York colleagues in a letter to your department expressing concern that your plan to remove SBA offices from so-called sanctuary cities would negatively affect my state and the surrounding region which contributes trillions to the national GDP.
01:07In response, you sent a letter describing these concerns as concerns for illegal aliens and characterizing these communities as criminal sanctuary cities. As head of SBA, do you care at all for expiring entrepreneurs in these communities you so-called label them as sanctuary cities? Do you care? Yes or no?
01:29Congressman, I'm deeply concerned about our cities that...
01:32Do you care? Yes or no?
01:33Yes, absolutely.
01:34Okay, yes. I'll take that as a yes.
01:36Do you commit right here to stop your plans to do away with the resources many of these businesses rely on? Yes or no?
01:44Congressman, we're stimulating our resources to ensure that all...
01:48No, I'll take that as a no because obviously you don't care. These are businesses that are not labeled as Democratic or Republican. You're going to hurt all businesses by doing something like this.
01:56You mentioned working with DOGE to identify what you called illegal loans to undocumented people. However, even after requests from us to review DOGE access, we have had silence, complete silence from you in your office. And now we hear about this case. Will you commit to allow members and committee staff an in-camera review of these cases? Yes or no?
02:20We will commit to working with you so that you understand the importance of the cuts that...
02:26Yes or no? Yes? Do I hear yes or no? Okay.
02:29We will absolutely look forward to working with you.
02:31Okay. Let's take that as a yes. We'll wait on the response.
02:34Refocusing in this agency is vital for small businesses.
02:35I'm reclaiming my time. On February 3rd, I have a lot of questions, Administrator. No disrespect, but we've been waiting for you for months, so you have to let me get through my questions.
02:42On February 3rd, 2025, Musk and Trump's DOGE team invaded the SBA and gained access to SBA systems, including its human resources, contract, and payment systems.
02:53This type of access to government systems by unauthorized, unvetted individuals is unprecedented.
03:01The committee continues to request specific information on the level of DOGE access to SBA systems that you have not provided,
03:08yet you regularly cite the information that DOGE releases about SBA that appears to be obtained from those systems.
03:15What SBA system did DOGE access?
03:19Congresswoman, the premise of your question is entirely false.
03:22Our DOGE partner is an SBA employee who has been vetted, as has the entire team.
03:27Administrator, did DOGE gain access to employee personnel files?
03:31Congresswoman, this is exactly what frustrates small businesses.
03:32Did DOGE gain access to employee personnel files?
03:35Yes or no? These are yes or no questions, Administrator.
03:39Okay? I'll take that as a yes if you're not responding.
03:42Did DOGE gain access? I'm reclaiming my time.
03:45Did DOGE gain access to the personnel identifiable information of small businesses?
03:50Congresswoman, we have-
03:51Yes or no?
03:52It's yes or no, Administrator.
03:54We have followed every law and we want you to follow the law as an SBA employee.
03:56Okay, I'm going to take that as you not answering.
03:57But we just saw a USDA employee arrested-
03:58I'm reclaiming my time.
03:59I'm reclaiming my time.
04:01What information was obtained and what is it being used for?
04:06Congresswoman, we'd be happy to work with you.
04:08We've been very transparent about the cost reductions-
04:10No, you haven't, Administrator.
04:11No, you haven't, Administrator.
04:12...we've been doing at the agencies.
04:13Can you answer the question?
04:14We have 35 empty offices.
04:16We've talked about those-
04:17It's a yes or no question.
04:18We have 11 data centers that we don't need.
04:20We need one data center.
04:21Yes or no?
04:22We have $3 billion of contracts-
04:23Administrator, you're saying a lot without saying anything at all.
04:25We're trying to get answers to our questions.
04:27No, these are-
04:28So that we can focus on small businesses.
04:29The bureaucracy is-
04:30With that, I yield back.
04:31With that, I yield back.
04:32The Administrator does not answer my questions.
04:35We've been waiting for months to get answers to these questions.
04:37You're saying a lot, but you're not saying anything at all.
04:40With that, I yield back.