Senator Murray Presses Trump’s Small Business Administrator on Canceled Grants, Immense Costs of Trump’s Trade War for Small Businesses
***WATCH: Senator Murray’s Q&A with SBA Administrator Loeffler***
Washington, D.C. — Today, U.S. Senator Patty Murray (D-WA), Vice Chair of the Senate Appropriations Committee, questioned Small Business Administration (SBA) Administrator Kelly Loeffler at a Senate Appropriations Financial Services and General Government (FSSG) Subcommittee hearing on the president’s fiscal year 2026 budget request for SBA. Murray pressed Administrator Loeffler on the Trump administration’s cancellation of SBA grants and how Trump’s trade war is imposing serious costs on small businesses in Washington state.
[GRANT TERMINATIONS]
Senator Murray began by pressing Loeffler on funding she terminated: “I’ve been hearing from small businesses in my state about the SBA grants that have been cancelled and frozen. One example is you canceled a $2.5 million Regional Innovation Cluster contract in Washington state that would have supported small businesses that were working on carbon capture and utilization and storage. It’s not an isolated case but that is a program that Congress historically funded with strong bipartisan support. I wanted to ask you today: why have you canceled funding for a program that has both bipartisan support and really drives small business growth in emerging sectors?”
Administrator Loeffler refused to answer the question directly but stated in part: “I have broad authority in this administration to reshape the Regional Innovation Clusters, and we are undertaking a review of those programs to right-size them and form them to where the needs are most urgent right now.”
Senator Murray countered: “I would just say this is a regional need, and I would just ask you to go back and look at that one. Happy to provide you information, but it really is a critical one for our region.”
[TRUMP’S TRADE WAR]
Senator Murray then asked about the steep cost of Trump’s trade war on small businesses: “I met with small business owners in Seattle, one of them runs a coffee shop and imports green tea. Like a lot of small business owners that I am talking to, and you know, they operate on thin margins so even the current tariffs are hitting them really hard. We don’t grow much green tea in the United States. I doubt we ever will. Given that the increased costs imposed by these tariffs could really—he told me—shutter his business. What should they do in this situation?”
Administrator Loeffler replied: “This period of negotiation, you know, is not one where we don't acknowledge their near-term effects, but for the long term, we want—”
Senator Murray interjected: “This is a small business. They can’t last much longer.”
Avoiding the question of how a small business is supposed to cope, Loeffler replied: “We're focused on is ensuring that we never get in the position again of having unfair trade. And that's what President Trump's fighting for. That’s what we're fighting for. We, just yesterday, put out our Make Onshoring Great Again directory to ensure that small businesses have access to millions—a million suppliers across this country that can offer alternatives—”
Senator Murray again interjected: “But this country doesn't produce green tea, and this small business is not going to last more than a few months. I hear your bigger scheme is that someday this will all pay off. This small business won't be there. I'm just asking you: what are they supposed to do? Are you going to – do you have anything drafted? Are you looking at anything that can help these small businesses who are on the verge of closing right now? They can’t wait 2, 3, 5, 6 months from now.”
Offering SBA loan financing to cover turbulent times thanks to Trump’s tariffs, Secretary Loeffler replied in part: “Well, what the SBA is offering is certainly the capital, the counseling that they need, as well as import and export loan financing to deal with these times of uncertainty.”
Senator Murray replied: “I appreciate that you have an optimistic view. I'm just telling you, having sat down and met with these small businesses, whether it's shutting the regional SBA office or canceling these grants to support our entrepreneurs, or these tariffs that are having impact, there are small businesses that will not make it based on your optimism.”
______________________
Senator Murray has been a vocal opponent of Trump’s chaotic trade war from the very start and has been lifting up the voices of people in Washington state harmed by this administration’s approach to trade and calling on Republicans to end Trump’s trade war—which Congress has the power to do—and take back Congress’ Constitutionally-granted power to impose tariffs. Earlier last month, Senator Murray brought together leaders across Washington state who highlighted how Trump’s ongoing trade war is already a devastating hit to Washington state’s economy, businesses, and our agriculture sector. Senator Murray also took to the Senate floor to lay out how Trump’s chaotic trade war is seriously threatening our economy, American businesses, families’ retirement savings, and so much else.
Murray has also been sounding the alarm on Trump’s tariffs across Washington state. Recently, Senator Murray held a roundtable discussion in Tacoma with local businesses and ports, met with farmers in Yakima to discuss the consequences of Trump’s tariffs, and held a roundtable discussion in Vancouver at a local metal fabrication company to highlight how Trump’s trade war is hurting businesses and our economy Washington state. Just last week, Senator Murray met with small business owners in Seattle’s University District to hear how Trump’s tariffs and the broader economic uncertainty are affecting them, and later she met with farmers in Skagit County to discuss tariffs, and visited Blaine near the Canadian border to highlight the impacts of Trump’s trade war. Earlier this month, Senator Murray rallied her West Coast colleagues and ports from Washington state and California to sound the alarm on how Trump’s tariffs will mean bare shelves, higher prices, and painful layoffs.
###
Next Article Previous Article