SBA Under New Leadership: What Small Business Owners Should Know in 2025

Apr 22, 2025

The SBA has undergone major changes under new Administrator Kelly Loeffler. These shifts affect millions of small businesses, especially the 4 million who took out COVID EIDL loans. Below is a summary of what’s happening, what’s changing, and how it may impact you — be sure to read the full article so you don't miss important information.

📌 Pro-tip: Check how to lower your EIDL total payment for free on Skip

New SBA Direction Under Administrator Loeffler

Kelly Loeffler was sworn in as the new SBA Administrator on February 20, 2025. Her Day One priorities indicate a shift in focus across the agency. Highlights include:

Rebuilding U.S. supply chains by supporting small manufacturers
Enforcing executive orders from the Trump Administration
Requiring full-time in-office work for SBA employees
Reducing internal workforce size and focusing on fraud enforcement
Improving SBA technology and customer experience
Cutting regulations to help business formation

While there are no new program announcements yet, these priorities show a clear intent to restructure the SBA’s operations and reduce fraud and inefficiencies.

EIDL Changes and the End of the Hardship Accommodation Plan

The SBA recently ended the EIDL hardship accommodation plan. This plan allowed borrowers to reduce payments to as little as 10% of their monthly minimum for up to two years. As of March 19, 2025:

The auto-enroll option has been removed from the SBA portal
Borrowers must now email the SBA to request assistance, which will be reviewed case-by-case
New hardship approvals are likely to be more limited and less generous

Borrowers who expected to renew their plans may no longer be able to, and those needing assistance must now provide more documentation. This change reflects a shift toward stricter repayment expectations under the new administration.

There is currently no COVID EIDL forgiveness program. Despite some past discussion, there is no sign of partial or full forgiveness on the horizon. Borrowers are expected to repay their loans in full.

Rising Loan Defaults and Increased Fraud Enforcement

Defaults in SBA’s 7(a) loan program have tripled in recent years, leading to negative cash flow for the program. This puts additional pressure on the SBA to tighten program rules and pursue repayment more aggressively.

A recent SBA Inspector General report revealed that over $200 billion of COVID-era funding may have been fraudulent. The SBA is now:

Reviewing loans tied to foreign IP addresses, duplicate payments, and ineligible businesses
Verifying citizenship and age as part of new loan applications
Investigating overstated employee counts and improper PPP or EIDL disbursements

Borrowers flagged in fraud reports have 30 days to respond and provide clarification. The SBA has made it clear that enforcement will continue, even for older loans.

Tools to Help You Manage Your EIDL Loan

To help borrowers manage their EIDL loans, we’ve launched a free EIDL Balance Calculator and Dashboard. This tool allows you to:

View your current loan balance, interest accrual, and payment schedule
Adjust your payment amount and see the impact on your total interest and payoff timeline
Plan proactively to avoid missed payments or defaults

You can access the tool now at EIDLBalance.com.

If you're one of the millions of borrowers struggling with payments or just want to optimize your repayment plan, this tool can help you take control.

For more updates on SBA changes, new funding options, and tools to help grow your business, visit tryskip.com or download the Skip app. We’ll continue tracking every major development to help small business owners navigate what’s next.