Saturday Business & Finance Brief: SBA Cuts, Market Warnings, and FinCEN Shakeup
- Staff Writer
- Mar 22
- 3 min read
Three key stories emerged since our newsletter on Thursday, so we wanted to share them with you. They offer important insights for fintech professionals, small business lenders, and anyone keeping a close eye on federal policy and market sentiment. From major job cuts at the Small Business Administration to concerns over market blind spots and a major regulatory reversal on ownership reporting, here’s what you need to know this Saturday.
1. SBA to Cut Nearly Half of Its Workforce Amid Organizational Overhaul
Source: Politico
The U.S. Small Business Administration (SBA) announced a sweeping reorganization plan that will eliminate approximately 43% of its workforce, amounting to over 2,700 positions. The restructuring is part of the Trump administration’s broader push to downsize the federal government and reduce spending.
Most of the reductions will come from voluntary resignations and term appointments that won’t be renewed.
Programs focused on diversity, equity, and COVID-era lending are among those being phased out.
The Office of Veterans Business Development and the Office of Manufacturing and Trade will remain intact.
In a surprising pivot, the SBA will also assume responsibility for the Federal Student Aid office, previously under the Department of Education.
This significant downsizing raises questions about how the SBA will continue to fulfill its mission of supporting small businesses at a time when many still face economic headwinds.
2. Danny Moses Warns: Market Underestimating Impact of Government Job Cuts
Source: Fortune
Danny Moses, the investor best known from The Big Short, is ringing alarm bells once again—this time over what he sees as the market's failure to account for the economic fallout of mass federal job cuts orchestrated by the Department of Government Efficiency (DOGE), a new Musk-led agency.
Moses cautioned in a CNBC interview that investors are underestimating the ripple effects of eliminating over 24,000 federal jobs, with 75,000 more pending resignation.
He described an “unvirtuous cycle” in which federal job losses hurt government contractors—especially small businesses—who now face uncertainty and declining revenue.
Consumer confidence dropped sharply last month, and Moses believes more signs of strain will show up in upcoming earnings reports.
Major government contractors, like Accenture, are already feeling the impact. Its federal business took a hit, leading to a 7.3% drop in its share price.
Moses’s main message: this isn’t just budget-cutting—it’s a structural shift that could drag down the broader economy and has yet to be fully priced into financial markets.
3. FinCEN Suspends Beneficial Ownership Reporting for U.S. Companies
Source: Forbes
In a major regulatory reversal, the Financial Crimes Enforcement Network (FinCEN) has suspended its beneficial ownership reporting requirements for domestic companies.
The rule was originally designed to increase transparency and reduce financial crime by requiring companies to disclose their true owners.
Critics argue that rolling it back could re-open pathways for money laundering, fraud, and shell company abuse.
Supporters of the suspension say it reduces unnecessary compliance burdens on small businesses and streamlines reporting requirements.
The move marks a significant shift in the Biden-era push for financial transparency and is expected to spark debate across legal, regulatory, and small business communities.
Final Thoughts
These developments paint a complex picture for businesses and investors alike. As the federal government retools its role in everything from student loans to small business support, and as regulators pull back transparency measures, the ripple effects will be felt far and wide—from Main Street to Wall Street. Meanwhile, voices like Danny Moses remind us that even in a booming market, it’s what’s not yet priced in that can cause the greatest disruptions.
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