WASHINGTON—The top Democrats on the Senate Finance and Senate Small Business committees are demanding answers from the Small Business Administration over what they said was a failure to help small businesses struggling with the financial fallout from President Trump’s tariffs, including companies that allegedly turned to high-cost “predatory” lenders to cover tariff-related costs, Law360 said.
In a letter made public Friday, Senate Finance Committee Ranking Member Ron Wyden and Senate Small Business and Entrepreneurship Committee Ranking Member Edward J. Markey asked the SBA to provide information on what assistance, if any, was offered to small businesses seeking financing because of increased tariff expenses. The lawmakers said some businesses reportedly relied on lenders charging effective interest rates as high as 94% annually to stay afloat amid rising import costs.
According to the lawmakers, the SBA failed to adequately warn small businesses about refinancing risks tied to tariff-related borrowing and did not provide sufficient relief options despite widespread financial strain among import-dependent firms. The senators requested details on SBA outreach, loan availability and any internal discussions related to tariff-driven financial hardship.
The issue comes as small businesses continue to absorb significant tariff costs tied to trade actions imposed in 2025. Reuters previously reported that small businesses accounted for an estimated $55 billion of the roughly $175 billion in tariffs paid to the federal government last year, with many firms facing mounting liquidity pressure and limited affordable financing options.