SBA Headquarters Staff to Relocate Outside D.C. Under New 'Returning SBA to Main Street Act'

The "Returning SBA to Main Street Act" mandates a significant shakeup at the Small Business Administration (SBA). Within a year, at least 30% of headquarters staff currently based in the Washington D.C. metro area will be relocated to other parts of the country. The bill also requires a 30% reduction in the SBA's headquarters office space within two years (Sec. 4). The stated goal is to bring the SBA closer to the small businesses it serves, particularly those in rural areas (Sec. 3).

Shaking Up the Org Chart

This law isn't just about moving desks; it's a fundamental restructuring of how the SBA operates. Key changes include:

• Mandatory Relocation: A minimum of 30% of headquarters employees must move out of the D.C. area (Sec. 3). The Administrator has one year to make this happen.
• New Duty Stations: When picking new locations, the Administrator must consider "geographic diversity," including rural areas, and ensure enough staff are available for in-person customer service (Sec. 3).
• Pay Changes: Employee pay will be adjusted to reflect the local rates of their new duty stations (Sec. 3). This could mean a pay cut for some.
• End of (Most) Full-Time Telework: Full-time telework is generally prohibited for relocated employees, except for those with ADA accommodations (Sec. 3).
• Office Space Reduction: The SBA's D.C. headquarters office space will shrink by at least 30% within two years (Sec. 4).

Real-World Ripple Effects

Imagine a program analyst currently working at SBA headquarters in D.C. Under this law, they might be required to move to, say, rural Iowa. Their salary would be adjusted to match Iowa's cost of living, and they'd be expected to work from a physical office. On the flip side, a small business owner in that same Iowa town might find it easier to access SBA services in person.

For a contracting specialist with an approved disability accommodation allowing them to telework full-time, they wouldn't be forced to relocate. However, the bill doesn't address other personal circumstances, like family obligations or spousal employment, which could make relocation difficult for some employees.

The Bigger Picture: Power, Precedence, and Potential Problems

This Act explicitly supersedes any existing laws, collective bargaining agreements, or master labor agreements (Sec. 7). This means that any prior agreements about telework or employee location are essentially null and void. The bill also gives the Administrator broad power to implement these changes, and individuals can't sue over decisions made under this law (Sec. 8).

The Act also requires the SBA to provide detailed information in budget justification materials about employee locations, including the number of headquarters employees, field office employees, full-time teleworkers, and those with ADA accommodations (Sec. 5). While this increases transparency, it also adds to the administrative burden.

While the stated aim is to help Main Street, there are potential downsides. Forcing experienced staff to relocate could lead to a loss of expertise within the SBA. The logistics of relocating a significant portion of the workforce, and cutting office space, will likely be complex and potentially disruptive. Also, while employees with ADA accommodations are exempt from relocation, the bill doesn't provide relocation incentives for employees whose official worksite changes from their residence to the Administration headquarters (Sec. 3). This could create financial burdens for some employees. The bill requires employees to be notified 60-90 days after the submission of the report, with changes effective 90 days after notification (Sec 3). And, headquarters employees who telework full-time and are not subject to an exception must cease full-time telework 180 days after the report submission (Sec 3).