Federal Small Business Administration Office to Move out of Six “Sanctuary Cities” to Cut Costs.

The Small Business Administration (SBA) of the United States announced last week that it will relocate its regional offices in six “Sanctuary Cities,” including Atlanta, Boston, Chicago, Denver, New York City, and Seattle, to locations that are “lower cost, more convenient in terms of transportation, and better able to serve the small business community, while also complying with federal immigration laws.” The specific relocation sites have not been disclosed yet.

SBA Administrator Kelly Loeffler stated in a press release on Thursday (6th) that the relocation is intended to ensure that the office locations comply with federal immigration laws. The statement did not reveal the specific relocation sites.

The Trump administration has previously criticized the policies of “Sanctuary Cities,” arguing that these policies impede federal immigration enforcement and jeopardize public safety.

The term “Sanctuary City” policies typically refer to local law enforcement policies that limit cooperation with federal immigration officials. Courts have repeatedly upheld the legality of such sanctuary laws.

The announcement comes at a time when members of Congress questioned four Democratic mayors on Wednesday about their “Sanctuary City” policies, with lawmakers criticizing these policies for endangering the safety of American citizens.

Established in 1953, the SBA aims to provide resources for small businesses and is responsible for managing small business and disaster recovery loans. During the pandemic, the SBA played a crucial role in helping distribute aid funds to small businesses. Each state has at least one regional office of the SBA, and large states like California and Texas have multiple offices that provide consultation, training, and other resources to support small business owners.

The SBA itself does not directly provide loans (except in the case of disaster assistance), but the agency collaborates with lending institutions to provide loans to small businesses, which often come with more favorable terms than traditional loans.

The impact of this relocation on small businesses’ access to resources remains to be seen. SBA’s regional offices typically provide consultation, training, and support services to business owners, and moving to a new location may affect the convenience for local businesses.

This move could also escalate tensions between the federal government and “Sanctuary Cities.” Currently, officials in several cities, including New York and Seattle, have publicly stated that they will continue to maintain their sanctuary policies and protect the rights of undocumented immigrants in their communities.