SBA to Relocate Urban Field Offices to Suburbs

The agency plans to move several regional offices to suburban locations starting next year to cut costs.

Updated on Oct. 26, 2026 in Remote Work

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The Small Business Administration is relocating several urban regional offices to suburban areas starting next year to reduce operational costs. AI Illustration. Upload story photo >

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The Small Business Administration intends to begin relocating its field offices from urban centers to suburban locations starting next year. The move is designed to reduce costs and improve accessibility for small business owners in rural communities.

Why it matters

The agency cited compliance with federal immigration law as a justification for the relocations while aiming to lower taxpayer expenses. The American Federation of Government Employees warns these changes could lead to further workforce reductions.

The Small Business Administration has cut its total headcount by 35% since 2024, leaving the agency with slightly more than 5,000 employees. The American Federation of Government Employees represents 700 of those remaining personnel.

The players

Small Business Administration

This is a United States government agency that provides support to entrepreneurs and small businesses.

American Federation of Government Employees

This is a labor union representing thousands of federal employees across various agencies in the United States.

Kelly Loeffler

She is the Administrator of the Small Business Administration who announced plans for the agency's regional office moves.

The details

Offices in Boston, Washington, D.C., Atlanta, and Denver are scheduled for relocation to sites in Southborough, Herndon, Marietta, and Englewood. The agency is also considering similar moves for locations in Chicago, Los Angeles, Minneapolis, New York City, San Francisco, and Seattle.

Timeline

  1. The Small Business Administration's headcount reduction began in 2024.

  2. Administrator Kelly Loeffler announced initial relocation plans in 2025.

  3. The union provided notice of relocation plans last week.

  4. The union requested that Congress pause the moves on Oct. 20, 2026.

  5. The agency expects to begin relocating the specified field offices next year.

Market Landscape

The agency's shift toward suburban locations marks a departure from traditional federal reliance on urban office hubs. This consolidation strategy mirrors broader corporate efforts to lower overhead costs while responding to legislative pressure regarding local immigration policy compliance.

Small business owners currently served by urban offices may see changes in local service accessibility and location as operations shift to suburban sites. The potential for further agency workforce reductions could also impact the speed or availability of administrative support.

The takeaway

Businesses should prepare for potential shifts in local government service points as federal agencies reconfigure their physical infrastructure. Monitoring official agency announcements remains the most effective way for owners to track changes to their local office access.

Further reading

For more on the current state of professional office distribution, visit the Remote Work section.

Source note: This article includes information reported by Government Executive.

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Should federal agencies relocate offices from major cities to smaller communities to lower operating costs?