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.

Erick Becerril, the Economic Development Manager, says so far, no businesses in Cathedral City have had federal funding cut due to spending reductions at the SBA. If businesses do see a pause in federal money, though, Becerril reminds business owners, "Regardless of what happens in the federal level, we as a local entity, we're here to support you. And so if you are running into any hurdles, regardless of their of their funding or not, feel free to reach out to us."

You can reach the Economic Development team and access resources that could help your small business on Cathedral City's Economic Development webpage, found here.

We reached out to other agencies and organizations who work more closely with directing federal funds to businesses to confirm if any Coachella Valley companies have had grants or loans paused, but are yet to hear back. Stay with KESQ for the latest.