Key Takeaways
- •Lisa Shimkat (Associate Administrator, U.S. Small Business Administration) reported that 97 percent of staff now work outside Washington, D.C. following the closure of 19 underutilized offices.
- •Shimkat testified that the agency launched a "Make Onshoring Great Again" portal with one million suppliers and a "Red Tape Hotline" to help small businesses report burdensome federal regulations.
- •Rep. McIver (D, NJ-10) challenged Shimkat over the exclusion of Democratic members from SBA roundtables and criticized relocating regional offices away from cities with high concentrations of Democratic voters.
- •Republicans lauded the SBA for increasing loan volumes despite staffing reductions, while Democrats condemned the agency for withholding millions in congressionally appropriated funds from resource partners like SCORE and SBDCs.
- •The SBA will continue upgrading its grant systems through May 2026, a process that has currently paused vital payments to technical assistance providers and international trade programs nationwide.
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Hearing Analysis
Key Testimony
The House Small Business Committee held a hearing on March 18, 2026, titled “Connecting SBA to Main Street: Examining the SBA Office of Field Operations,” to conduct oversight of the U.S. Small Business Administration (SBA) Office of Field Operations (OFO). Chaired by Rep. Roger Williams (R, TX-25), the hearing focused on the OFO’s role in delivering resources through its 68 district and 10 regional offices. The primary witness was Lisa Shimkat, Associate Administrator for the OFO, who previously served as the state director for America's Small Business Development Centers (SBDC) in Iowa. The hearing highlighted a sharp partisan divide regarding the current administration's management of the SBA under Administrator Kelly Loeffler, specifically concerning staffing reductions, office relocations, and the withholding of funds from resource partners.
Associate Administrator Shimkat testified that the SBA has undergone a fundamental realignment to move the majority of its workforce out of Washington, D.C., and into the field. She reported that 97 percent of OFO employees are now located in regional and district offices. Shimkat emphasized the agency's focus on "lender engagement" and "onshoring" through the newly launched "Make Onshoring Great Again" portal, which reportedly includes over one million U.S. suppliers. She also highlighted the "Red Tape Hotline" (redtape@sba.gov), a tool for small businesses to report burdensome regulations. According to Shimkat, the SBA delivered $7.1 billion in lending to rural businesses and $1.5 billion to veteran-owned businesses in FY 2025, while hosting over 30,000 local events.
Organizations & Entities
Republican members, including Rep. Daniel Meuser (R, PA-9) and Rep. Beth Van Duyne (R, TX-24), praised the SBA for "right-sizing" the agency. Rep. Meuser noted that while staff levels dropped from a peak of 6,500 during the pandemic to approximately 2,700, lending volumes for 7(a) and 504 programs have increased. Rep. Pete Stauber (R, MN-8) and Rep. Kimberlyn King-Hinds (R-MP) expressed support for the shift toward rural and veteran outreach, though Rep. King-Hinds raised concerns about the closure of the Guam field office, which now requires businesses in the Northern Mariana Islands to coordinate with Hawaii-based staff across multiple time zones.
Industry Impact
In contrast, Democratic members led by Ranking Member Nydia Velázquez (D, NY-7) sharply criticized the SBA’s recent actions. Rep. Velázquez highlighted a 27 percent decline in field staff during the first nine months of 2025 and accused the administration of "weaponizing" the agency by relocating offices out of "sanctuary cities" like Portland and Minneapolis. Democrats also raised alarms over significant funding delays to SBA resource partners. Rep. Velázquez and Rep. Johnny Olszewski (D, MD-2) noted that the SBA has withheld $10 million from SCORE and is lagging on payments to SBDCs and Women’s Business Centers (WBC). Rep. Derek Tran (D, CA-45) and Rep. Kelly Morrison (D, MN-3) argued that pausing grant payments for a system upgrade until May 2026 is inexcusable and threatens the survival of local counseling networks.
Overview
A significant portion of the hearing addressed the relocation of offices. Shimkat defended the decision to move offices out of major urban centers, citing "employee safety" and high costs. She cited an incident in Portland involving a threatening encounter with a homeless individual as a primary driver for these moves. However, Rep. LaMonica McIver (D, NJ-10) and Rep. Morrison challenged this rationale, suggesting the moves were politically motivated and reduced accessibility for small businesses in high-density areas. Rep. McIver also confronted Shimkat over the lack of invitations for Democratic members to SBA roundtables held in their own districts, such as a recent event in Newark.
Policy discussions touched on international trade and manufacturing. Rep. Maggie Goodlander (D, NH-2) questioned Shimkat on the impact of tariffs, which she characterized as "unconstitutional" and damaging to New Hampshire businesses. Shimkat countered that some manufacturers, such as AccuRounds and Powerbrace, viewed tariffs as a "net positive" for domestic production. The committee also discussed Chairman Williams' proposal to increase 7(a) and 504 loan limits to $10 million for small manufacturers to support the onshoring mission.
Key Testimony
The following organizations were identified and discussed: - U.S. Small Business Administration (SBA): The central agency under review for its staffing, relocation policies, and funding disbursements. - SBA Office of Field Operations (OFO): The specific office overseen by the witness, responsible for the 68 district and 10 regional offices. - America's Small Business Development Centers (SBDC): Mentioned frequently regarding funding delays and their role as resource partners; Shimkat is a former SBDC director. - SCORE: A nonprofit mentorship partner; members noted that $10 million in funding is currently being withheld from the organization. - SBA Office of Entrepreneurial Development (OED): Identified as the office responsible for the grant payments to resource partners that are currently delayed. - SBA Office of Advocacy: Referenced as the entity that receives regulatory feedback from the field via the Red Tape Hotline. - SBA Office of Capital Access (OCA): Mentioned in the context of 7(a) and 504 loan programs and onshoring initiatives. - SBA Office of Disaster Recovery and Resilience (ODRR): Discussed regarding the role of field staff in responding to local disasters. - People's Republic of China: Referenced as a competitor that the "Make Onshoring Great Again" portal seeks to decouple from. - SBA Office of the National Ombudsman: Mentioned as a partner for the OFO in addressing small business regulatory concerns. - SBA Office of Manufacturing and Trade (OMT): Shimkat serves as the acting administrator for this office, which focuses on global competitiveness. - Women's Business Centers (WBC): Identified as resource partners facing funding delays. - Federated States of Micronesia (FSM) and Republic of the Marshall Islands: Mentioned regarding the reach of the Guam/Hawaii field offices. - Powerbrace and AccuRounds: Private companies cited by Shimkat as success stories for onshoring and tariff policies. - Kutztown University and Bucknell University: Cited by Rep. Meuser as hosts for effective SBDCs in Pennsylvania. - California State University, Fullerton (CSUF): Mentioned by Rep. Tran as the host of the Orange County Inland Empire SBDC. - Iowa Central Community College and Iowa State University: Noted as the witness's alma maters. - SBA Office of Rural Affairs (ORA) and SBA Office of Native American Affairs (ONAA): Mentioned by Rep. Velázquez regarding Democratic efforts to codify these offices. - Government Accountability Office (GAO): A 2023 report was cited regarding low headquarters occupancy rates. - Office of Management and Budget (OMB): Mentioned regarding the withholding of SBDC funds. - U.S. Department of Labor (DOL): Referenced regarding a Memorandum of Understanding with the SBA on workforce issues. - U.S. Immigration and Customs Enforcement (ICE): Mentioned in the context of a safety incident at a shared office building in New York. - APEX Accelerator: Cited as a partner in a recent supplier matchmaking event in North Carolina.
Overview
The hearing concluded with Chairman Williams requesting prompt responses to written follow-up questions. No specific future hearing dates were set, but Democrats signaled they would continue to press for the release of withheld funds for SCORE and SBDCs.
Transcript
Good morning everyone. I now call the Committee on Small Business to order and without objection the chair is authorized to declare a recess of the committee at any time. I now recognize myself for my opening statement. Welcome to today's hearing, Connecting SBA to Main Street: Examining the SBA's Office of Field Operations. First I want to thank our witness, Associate Administrator Shimkat, for appearing before the committee. Thank you for being here and I'd also like to thank her family for joining us today to see the committee in action. Today the committee will review the activities of the SBA's Office of Field Operations, the office directly responsible for delivering resources to small businesses across the country. Through its network of 68 district offices and 10 regional offices, the Office of Field Operations connects entrepreneurs with counseling, contracting opportunities, and access to capital. And just as importantly, their offices serve as a front door to the SBA, connecting small businesses with resource partners like Small Business Development Centers. The SBA's field office staff works directly with small businesses. They hear entrepreneurs' concerns firsthand, help them navigate federal programs, and ensure that the SBA's services reach communities across the country. This personal connection to Main Street is why it has been a priority to get the SBA out of Washington, D.C. and closer to the entrepreneurs and communities it serves. Small businesses should not have to navigate a distant bureaucracy to access the programs meant to help them succeed. In 2025, SBA field staff hosted more than 30,000 local events and connected with nearly a half a million entrepreneurs across the country. Field staff also plays a critical role in the federal disaster response efforts by connecting affected businesses with the financial assistance they need. Field offices also played a key role in promoting American-made manufacturing through their Made in America manufacturing initiative and roadshow events held across the country over the past year. In the last year, the SBA's helped connect small businesses with opportunities to strengthen American supply chains and promoted the newly launched Make Onshoring Great Again portal, which includes more than one million U.S. suppliers. Somebody wants to say something while I'm opening this piece of paper. There we go. The portal helps businesses find American partners and reduce reliance on foreign production. This is just one of the resources that the SBA's district offices ensure Main Street is aware of. Thank you for joining us today, Associate Administrator Shimkat. I look forward to hearing about the accomplishments of the Office of Field Operations and how Congress can continue strengthening the SBA's presence in communities across the country. With that I yield to my friend and our distinguished ranking member from New York, Ms. Velázquez, for her opening remarks.
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