Fox Business
Fox BusinessJan 1
Politics

SBA’s Loeffler: We are returning to ‘Made in America’

7 min video3 key momentsWatch original
TL;DR

Kelly Loeffler, Trump's SBA chief, says small businesses are surging thanks to tax cuts, regulatory relief, and a return to domestic manufacturing with 18 trillion in new investment.

Key Insights

1

99% of all businessesSmall businesses make up 99% of all US businesses and 98% of manufacturers, making them the primary engine for job creation and economic growth.

2

The 100% immediate expensing provision allows small businesses to deduct capital investments and R&D costs upfront, which Loeffler credits with saving six million jobs and creating $100 billion in economic growth potential.

3

Trump has brought back $18 trillion in manufacturing investment, with capex boom activity spreading across aerospace, autos, defense, and agriculture — not just concentrated in AI data centers.

Deep Dive

Tax cuts and the small business toolkit

Loeffler opens by framing Trump's tax agenda as a direct boost to Main Street. The centerpiece is the working family tax cuts — eliminating tax on tips and overtime — which she argues creates dual incentives: employees have reasons to work harder, and small businesses gain capital to invest and hire. She highlights 100% immediate expensing for both equipment and factory floors as the game-changer. Big corporations always had certainty on tax rates, she says, but small businesses didn't until now. The 20% pass-through deduction ensures small business owners keep more of what they earn. She claims this package alone prevented six million job cuts and unlocked $100 billion in economic growth potential.

Manufacturing revival across sectors

When pressed on whether capex is just AI and data centers, Loeffler pivots to fieldwork evidence. She's traveled to nearly every state, walked factory floors, and met manufacturers like Republic Wire in Ohio and CUSA Steel in Georgia. The pattern is broad-based: aerospace, autos, defense, and agriculture are all seeing renewed investment. She frames this as reversal of decades of hollowing out — the US outsourced its manufacturing base to China and now is reclaiming it. Tariffs, in her view, aren't protectionism but fair trade that restores American industrial dominance. She emphasizes this is year one, suggesting the momentum is just starting and will compound over the next few years.

Pandemic fraud crackdown and accountability

Loeffler shifts to SBA's fraud task force, flagging $22 billion in suspected pandemic-era loan abuse. She frames this as taxpayer money — and taxpayers are small business owners themselves — so cracking down protects the honest ones. The Trump administration's zero-tolerance policy on fraud is meant to prevent future schemes and ensure long-term accountability. This section reinforces her broader message: the admin is clearing obstacles and bad actors so legitimate small businesses can thrive without competition from scammers.

Takeaways

  • Watch for capex spending beyond AI data centers — Loeffler says manufacturing, aerospace, and defense small suppliers are all investing broadly, not just tech.
  • Track SBA fraud enforcement updates; 22 billion in suspected pandemic loan abuse affects honest businesses competing for resources and credit access.
  • Monitor tariff impact on your supply chain — Loeffler frames them as fair trade policy, not protectionism, pushing reshoring of outsourced manufacturing.

Key moments

4:1322 billion in pandemic loan fraud flagged

22 billion, Taylor. When you think about that's taxpayer money. Who are taxpayers? Small businesses.

2:2018 trillion in manufacturing investment under Trump

President Trump has brought back 18 trillion in investment. That means even the big manufacturers rely on small businesses because small business is critical to our supply chains.

5:01Tariffs framed as fair trade, not protectionism

When you think of tariffs, think of fair trade. It's creating jobs and wage growth in the manufacturing sector, something we haven't had for years.

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