NEWS | FY27 Budget Proposal from President Includes Major Cuts to Small Business Administration

NSBA works every day to ensure small businesses are supported by a comprehensively funded administrative resources and support and continues to monitor reception of the President's FY27 budget proposal on Capitol Hill and across our community.

APRIL 09, 2026 | On April 3, President Trump released the administration’s proposed budget for fiscal year 2027 (FY27), which lays out deep fiscal reductions, including significant cuts for programs under the U.S. Small Business Administration (SBA) focused on diversity, equity and inclusion (DEI).

Although just a proposal from the White House at this time, the President's budget request historically sets the tone for Congressional appropriators who are charged will ultimately determine discretionary spending. 

President Trump's FY27 budget proposal suggests a series of potential funding cuts for SBA, with a total discretionary budget request of $329 million overall. This amounts to a $671 million or 67 percent decrease from the FY26 enacted level. This is the largest percentage cut from any agency. Specifically:

• The budget proposal cuts Entrepreneurial Development Programs by $309 million; and

• The President's request maintains $21.4 million to support Veterans. 

Program changes under the FY27 proposal include:

• Eliminating the Service Corps of Retired Executives (Score), the Community Navigator Pilot Programs, the Minority Business Development Agency, and the Rural Business Service;

• Reducing $170 million from Salaries and Expenses, with $260 million total remaining;

• Reducing $158 million reduction to Business Loan Programs Administrative Expenses; and

• Adding additional administrative fees on lenders participating in SBA’s guaranteed business lending programs.

  
  

NSBA remains an outspoken proponent of a strong, thriving SBA to meets the needs of a very broad and diverse small-business community. If enacted by Congress as part of its upcoming appropriations cycle, cuts under the FY27 budget proposal could be very dramatic, resulting in higher costs for lending, fewer technical resources and greater difficulty for small businesses seeking assistance from the agency.

Follow us as we continue tracking progress of the President's budget request and approporations season on Capitol Hill.