May 15,2026

Wyden and Markey Press Trump Administration on Failure to Aid Small Businesses Hammered by Illegal Tariffs; Without Help from SBA, Importers Relied on Predatory Loans to Stay Afloat

The Lenders Charge Hidden Interest Rates of up to 94% a Year; Prey on Cash-Strapped Businesses Struggling to Pay Trump’s Tariffs

Washington, D.C. – Senate Finance Committee Ranking Member Ron Wyden, D-Ore., and Senate Small Business and Entrepreneurship Committee Ranking Member Edward J. Markey, D-Mass., today pressed the Small Business Administration (SBA) on its abandonment of small businesses that have faced economic catastrophe as a result of Trump’s global tariffs imposed in April 2025.

Without support from federal agencies, hard-hit businesses relied on predatory lenders, paying astronomical fees and interest simply to keep their doors open. Wyden and Markey questioned SBA Administrator Kelly Loeffler about why her agency failed to adequately warn small businesses about these predatory lenders, and why it changed its policy last year to prevent SBA loans from being used to pay off that debt.

“As Ranking Members of the Senate Finance Committee and Senate Small Business and Entrepreneurship Committee, the information we request in this letter will aid our understanding of whether the administration’s tariff policy and gaps in small business funding may be inadvertently funneling businesses into predatory financing arrangements without an exit path,” Wyden and Markey wrote.

Recent reports found that lenders offering this predatory financing, known as Merchant Cash Advances (MCAs), have led small businesses into shady arrangements that create a debt-stacking spiral by falsely promising same-day cash through nonstop calls, texts, and WhatsApp pitches.

These predatory lenders feed on the cash-flow crisis created by Trump’s tariffs to trick struggling small businesses into loans with opaque terms, substantial upfront fees and repayment obligations that only grow worse when sales drop. Yet, not only did the SBA fail to adequately warn small businesses about these predatory schemes, it also changed its policy in June 2025 to prohibit SBA loans from being used to refinance MCA debt and escape often-desperate liquidity crises.

Wyden and Markey underscored that “the agency’s mission remains to aid, counsel, assist and protect the interests of small businesses. SBA’s website, partner network materials, and outreach campaigns do not appear to include prominent warnings about MCA risks or guidance. We are concerned that many small businesses felt they were unable to access loans available through SBA programs quickly enough to meet their needs and were forced to turn instead to MCAs, unaware of the risks of predatory financing.”

In order to better understand SBA’s failure to protect small businesses from MCAs, Wyden and Markey demanded answers to the following questions by May 28:

  1. Please provide records of any interagency coordination, including, but not limited to, coordination with the Office of the United States Trade Representative and Customs and Border Protection, regarding small-business liquidity preparedness tied to IEEPA tariff actions.

  2. Please provide any internal assessments regarding SBA’s capacity to meet immediate working capital needs during tariff-driven crises.

  3. Please provide any communications or outreach, including advisories, alerts, webinars, or trainings, warning of MCA risks and directing small businesses to safer alternatives.

  4. Please describe how MCA debt is treated in SBA underwriting and whether any policies exist or are planned to allow refinancing of MCA obligations.

  5. Please provide policy documents including, but not limited to, data on SBA loans used to refinance MCAs prior to the June 2025 changes, as well as memos, forms, guidance, and lender trainings, explaining the rationale behind the June 2025 SOP restriction concerning MCA debt.

Wyden has been a leader in the Senate in fighting Trump’s illegal tariff scheme and protecting small businesses. Last week, Wyden demanded answers from Wall Street Investors who scooped up the rights to small businesses’ tariff refunds. In October, 2025, the Senate passed Wyden’s bipartisan resolution to repeal Trump’s global tariffs. In February 2026, Wyden and 25 Senate Democrats introduced legislation requiring the Trump administration to pay automatic refunds of illegal tariffs and to prioritize small businesses. He followed up with a letter to CBP in March, highlighting the deficiencies in their refund system and pushing for an automatic refund process that does not unfairly burden small businesses. In April 2026, Wyden called for the passage of the Speedy Tariff Refunds Act as Trump continues to delay refunds.

The text of the letter is here.

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