A 2014 restructuring spent millions on early-retirement incentives but left the agency lacking the talent to do its job.
A botched restructuring at the Small Business Administration three years ago weakened the agency’s ability to help entrepreneurs, according to a recent report by the SBA’s Office of the Inspector General. At a hearing this week, members of the House Committee on Small Business criticized the initiative, in which the agency spent roughly $2.1 million on early-retirement incentives without adequate plans to fill those vacancies with employees with critical skills.
“Anything that needlessly saps resources from SBA means the potential of lost opportunities for entrepreneurs,” says New York Democrat Nydia M. Velazquez, ranking member of the committee. “For example, when the agency fails to implement personnel programs correctly, it means initiatives that serve small companies are not operating at maximum efficiency. That’s bad for the small-business sector.”