This bill mandates the relocation of Small Business Administration offices out of designated "sanctuary jurisdictions" within 120 days or face immediate shutdown and reassignment of staff.
Brad Finstad
Representative
MN-1
The Save SBA from Sanctuary Cities Act of 2025 mandates the relocation of Small Business Administration (SBA) offices situated in designated "sanctuary jurisdictions." If an office is not moved within 120 days of being identified, it must cease operations and its employees reassigned. The bill also prohibits the establishment of any new SBA offices in these jurisdictions.
| Party | Total Votes | Yes | No | Did Not Vote |
|---|---|---|---|---|
Democrat | 212 | 5 | 195 | 12 |
Republican | 220 | 206 | 4 | 10 |
SBA Offices Face Mandatory Closure and Relocation in 'Sanctuary Cities' Within 120 Days
The “Save SBA from Sanctuary Cities Act of 2025” is a piece of legislation that doesn’t change how small businesses get loans, but it absolutely changes where they get help. This bill forces the Small Business Administration (SBA) to identify and relocate any regional, district, or local office currently operating in a “sanctuary jurisdiction.” The goal is straightforward: if a local government (city or county) has policies that limit cooperation with federal immigration agencies—like refusing to share citizenship status information or honor federal detainer requests—the SBA office must pack up and move out.
The 120-Day Clock and the Automatic Shutdown
This isn't a suggestion; it's a hard mandate with a severe deadline. Once the SBA Administrator publicly confirms an office is in one of these jurisdictions, they have only 120 days to move the entire operation to a non-sanctuary location (SEC. 2). If the move isn't completed on time, that office must shut down operations immediately. Every employee gets reassigned to another SBA office outside that jurisdiction, potentially across the state or even further. Think about the small business owner in a major metropolitan area who relies on that local SBA office for help with a disaster loan or accessing a specific grant program—if the office closes, that crucial, local access vanishes overnight.
Leadership on the Hot Seat
The bill puts the heads of these local SBA offices under immense pressure. If the office misses the 120-day relocation deadline, the office head must submit a written explanation within five days. Crucially, the Administrator is required to immediately fire the office head if they fail to submit this explanation, or if the Administrator decides the explanation for the delay is simply “not good enough” (SEC. 2. Consequences for Office Heads). This grants the Administrator significant, subjective power to terminate staff, tying job security directly to the speed and complexity of moving a federal office in four months.
Who Pays the Price for the Move?
While the bill aims to align federal office locations with immigration enforcement policy, the real-world impact hits small business owners and SBA employees. For the entrepreneur who needs in-person counseling or access to local resources, forcing the office to move—often to a location far outside the central business district—creates a major barrier to access. A tech startup founder or a construction company owner suddenly has to drive significantly farther, adding hours and logistical hassle just to access the resources they pay taxes for. Furthermore, the mandatory shutdown clause is a significant economic risk: if the move stalls past the deadline, essential SBA services for that entire region simply disappear until the new location is operational. This could mean delays in processing loans or critical disaster relief, creating chaos for the very small businesses the SBA is supposed to support.