Local small business owners have questions amid changes to federal agencies

CATHEDRAL CITY, Calif. (KESQ) – As federal agencies like the Small Business Administration (SBA) face cuts amid the Trump administration’s downsizing efforts, some local businesses have questions about what it means for them.

The SBA provides resources and funding for mom-and-pops to help them start, grow, and expand. This includes providing loans to businesses and collaborating with cities to encourage business growth.

Earlier this month, the agency announced it will require citizenship verification for all SBA loan applications. In the same release, it also revealed six SBA offices located in sanctuary cities (Atlanta, Boston, Chicago, Denver, New York City, and Seattle) to “less costly, more accessible locations that better serve the small business community and comply with federal immigration law.”

In a separate release in February, SBA Administrator Kelly Loeffler also outlined the agency’s key priorities, including following directives from the Department of Government Efficiency (DOGE) to eliminate waste among its workforce. This included firings of several hundred of its probationary employees.

Cathedral City’s Economic Development team hosted a Small Business Workshop last December in collaboration with the SBA.

We’re asking the city and local small businesses about their thoughts on changes within the SBA and how business owners in the Coachella Valley are affected.

Stay with KESQ for the latest.