Proposed Bill Mandates 30% SBA Headquarters Staff Relocation, Office Space Cut Within Two Years

A new bill, the "Returning SBA to Main Street Act," proposes a significant shake-up for the Small Business Administration. If passed, it would require the SBA Administrator to relocate at least 30% of the agency's headquarters employees currently based in the Washington D.C. area to other SBA offices across the country within one year. Alongside this, the bill mandates a 30% reduction in the SBA's headquarters office space, to be completed within two years.

Shifting Staff, Cutting Space

The core of this proposal involves moving a substantial portion of the SBA's central workforce out of the D.C. metro. According to Section 3, relocated employees would see their pay adjusted based on the "pay locality" of their new duty station, which could mean a pay cut for those moving to lower-cost areas. Crucially, these relocated employees generally wouldn't be allowed to telework full-time, with an exception carved out for those needing it as a reasonable accommodation under the Americans with Disabilities Act. Even current full-time teleworkers based in the D.C. area could lose that status 180 days after the SBA submits a required implementation report. The bill also explicitly states in Section 3 that employees whose worksite changes from home back to an office won't receive relocation incentives. Simultaneously, Section 4 directs the SBA Administrator to shrink the agency's headquarters footprint by at least 30%, starting within 180 days and finishing within two years.

The Push for Presence: Goals and Ground Realities

The stated aims in Section 3 include promoting "geographic diversity" in staffing, specifically mentioning consideration for "rural markets," and ensuring "adequate staffing" in regional offices to boost "in-person customer service." Imagine a small business owner in a rural area potentially having more direct access to SBA personnel. However, the transition itself could cause significant disruption. For the affected employees, this means mandatory relocation, potential changes in pay, and restricted remote work options. The bill requires the SBA Administrator to report on the implementation plan within 180 days, giving employees between 60 and 90 days' notice after that report before their duty station changes, with the move effective 90 days post-notification.

Rules of the Road: Reporting and Restrictions

Beyond the relocation, the bill tightens reporting requirements. Section 5 demands future budget requests detail the number of headquarters vs. field staff and the specifics of telework arrangements, including ADA accommodations. This aims to give Congress a clearer picture of the SBA's workforce distribution. However, the bill also includes clauses that limit recourse. Section 7 states this Act "supersedes" other laws and collective bargaining agreements, potentially overriding existing employee protections or union contracts concerning relocation and work arrangements. Furthermore, Section 8 explicitly prohibits individuals or groups from suing over "any selections, changes, decisions, or actions" made under this law, limiting legal challenges to how these significant changes are implemented.