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U.S. Rep. Kelly Morrison Presses Trump’s Head of the Small Business Administration to Support Tariff Exemptions for Small Businesses

June 4, 2025

WASHINGTON, DC – Today, U.S. Representative Kelly Morrison (MN-03) questioned the United States Administrator of the Small Business Administration Kelly Loeffler at a hearing of the U.S. House Committee on Small Business. 

During her questioning, Rep. Morrison pressed Administrator Loeffler to support tariff exemptions for small businesses. Administrator Loeffler refused to commit her support.

“I think it’s completely unacceptable that this Administration is willing to give exemptions to massive tech corporations who have the resources to lobby the President while disregarding the outcries of small businesses,” said Congresswoman Kelly Morrison. “I’ve heard from so many small business owners who are in disbelief, frustrated, and scared that everything they’ve worked so hard to build is being taken away from them. I urge you to do everything you can to advocate for a tariff exemption for our small businesses as the Small Business Administrator, our nation’s leading advocate for small businesses.”

Rep. Morrison is a member of the U.S. House Committee on Small Business and has been a fierce advocate for providing relief for small businesses from President Trump’s reckless tariff wars. Earlier this Spring, Rep. Morrison wrote to the Trump Administration demanding an immediate exemption for small businesses.

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Rep. Morrison questions Small Business Administrator Loeffler

Watch Rep. Morrison’s full exchange with Small Business Administrator Loeffler HERE.

Read a transcript of Rep. Morrison’s full exchange with Small Business Administrator Loeffler below. 

Rep. Kelly Morrison: Thank you, Chairman Williams, for holding this hearing, and thank you Administrator Loeffler for taking the time to testify today. Time is short, so I want to jump right in: 

Were you consulted on President Trump’s tariff policy?  

Administrator Kelly Loeffler: Congresswoman, I certainly stay in constant dialogue with President Trump. There is no stronger advocate of small business than President Trump. He knows that small business is big business and he also knows that small businesses have been incredibly disadvantaged by unfair trade policy, by an unlevel playing field.

Rep. Kelly Morrison: Thank you, Administrator. So, I assume you support President Trump’s tariff policy, I guess if you could call it a policy? 

Administrator Kelly Loeffler: Well I would say that it’s a fair trade policy that has not been in place for 30 years that has created a massive disadvantage…

Rep. Kelly Morrison: Thank you, Administrator. Are you aware of the tariff exemption that President Trump announced on April 11th for smartphones, laptops, and televisions?  

Administrator Kelly Loeffler: Yes Congresswoman.

Rep. Kelly Morrison: Do you support this exemption?

Administrator Kelly Loeffler: I support the President’s actions to ensure that we have fair trade –

Rep. Kelly Morrison: Would you support a tariff exemption for small businesses? 

Administrator Kelly Loeffler: What I support is a level playing field for small businesses.

Rep. Kelly Morrison: Respectfully, ma’am, say yes or no.

Administrator Kelly Loeffler: This is what our small businesses have been up against. This book [holds up book], 400 pages of unfair trade –

Rep. Kelly Morrison: Respectfully, Administrator, yes or no, would you support an exemption for small businesses from the trade war?

Administrator Kelly Loeffler: I support ensuring our small businesses never have to –

Rep. Kelly Morrison: I’ll take that as a no. Administrator, the U.S. Chamber of Commerce has asked the Administration for an exemption for small businesses. Small businesses in my state and across the country are asking for an exemption. Senator Curtis even said to you when you testified in front of the Senate Small Business Committee that small businesses are being hurt by the tariffs and the uncertainty.  Without an exemption, they’re gonna be forced to raise prices for consumers, lay off staff, or go out of business. I think it’s completely unacceptable that this Administration is willing to give exemptions to massive tech corporations who have the resources to lobby the President while disregarding the outcries of small businesses.  I’ve heard from so many small business owners who are in disbelief, frustrated, and scared that everything they’ve worked so hard to build is being taken away from them. I urge you to do everything you can to advocate for a tariff exemption for our small businesses as the Small Business Administrator, our nation’s leading advocate for small businesses. 

Administrator Kelly Loeffler: Congresswoman, our president is negotiating fair trade for the first time in 30 years – who is advocating for the American worker?

Rep. Kelly Morrison: Please, Administrator. Small businesses need an exemption from the tariff war. Okay, I want to turn to our veteran-owned small business owners. I have the honor of serving on the Veterans Affairs Committee and I’m the wife of an Army combat veteran. In March, we learned that the VA canceled over two billion dollars in contracts. Reporting suggests that 90% of the canceled contracts were with veteran-owned small businesses and service-disabled veteran-owned small businesses. I joined my colleagues on this committee and the Veterans Affairs Committee in sending a letter to Secretary Collins to determine how many small business owners were impacted by these contract cuts. We have not received a reply yet from the VA. The SBA may not administer these contracts, but these are small businesses being affected and the service-disabled veteran-owned small business program is an SBA program. Are you keeping track of how many contracts with service-disabled veteran-owned small businesses or veteran-owned small businesses the VA canceled?

Administrator Kelly Loeffler: For the first time in four years, this Administration is back focusing on veterans. We have seen veterans – 

Rep. Kelly Morrison: Administrator, how many small businesses are being impacted by these cuts?

Administrator Kelly Loeffler: Congressman, we’re partnering with the VA who the president – the small – veterans will be better off under President Trump. He increased their budget by five billion dollars –

Rep. Kelly Morrison: Administrator, what is the SBA doing to support the veteran-owned small businesses and service-disabled veteran-owned small businesses impacted by these contract cuts?

Administrator Kelly Loeffler: I’m the daughter and granddaughter of veterans. I served on the Veterans Affairs Committee in the Senate as well. We are making sure that our veterans –

Rep. Kelly Morrison: Ma’am, respectfully, will you commit to working with Secretary Collins to get us this information? 

Administrator Kelly Loeffler: Absolutely. I just entered into an MOU with Secretary Collins to ensure that there is that partnership and I look forward to delivering real results and was at Joint Base San Antonio with veterans.

Rep. Kelly Morrison: Wonderful. One final question. You say you’re focusing on field operations to improve delivery and support to small businesses especially in rural areas – but you cut the district office workforce by more than 20%. So how do you reconcile the cuts with more support and access to reliable and timely customer service? 

Administrator Kelly Loeffler: Well, I reject the idea that we’ve cut the field. We’ve returned people to the field, 90% of whom were working from home and not even in the field. So, we’re strengthening our field organization. We’re streamlining it to ensure that they’re focused on small businesses.

Rep. Kelly Morrison: And have you appointed anyone to head up the office of rural affairs yet?

Administrator Kelly Loeffler: Yes, Congresswoman we have.

Rep. Kelly Morrison: Wonderful. Looking forward to hearing more about that. 

There’s been a characterization about the way the minority voted on the ridiculously named “One Big Beautiful Bill Act” and I just would like to point out that the majority actually voted to take health care away from kids and moms, voted to explode the national debt, and voted to pay for tax cuts for the wealthiest among us. Thank you for being here today Administrator and I yield the remainder of my time. 

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Issues: Small Business