The Small Business Administration (SBA) will now be responsible for handling federal student loans for more than 40 million Americans, taking over that responsibility from the Department of Education a day after President Donald Trumpsigned an executive orderto dismantle the education agency.The announcement comes at the same time that the SBA said it is cutting 43% of its staff and restructuring the agency to eliminate wasteful spending, as part of the Trump administrations cost-cutting agenda.We havea portfolio that is very large, lots of loans, tens of thousands of loans, pretty complicated deal, President Donald Trump said to reporters at the White House on Friday. Theyre all set for it. Theyre waiting for it. However, critics have said this could create chaos and confusion for millions of American borrowers. Currently, the U.S. federal education debtexceeds $1.6 trillion, according to CNBC.As CBS News noted, the SBA employs less than half a percent of the entire federal workforce, or roughly 6,500 people. Under the reorganization plan, the agency will eliminate approximately 2,700 jobs, which the agency said would save more than $435 million a year by next fiscal year.The SBA said in a statement that its reorganization will not impact its core services, which include loan guarantees and disaster assistance programs, and field and veteran operations; but it will refocus on supplying capital, fostering innovation, supporting veteran small business owners, and providing timely disaster relief in support of President Trumps economic agenda.It remains unclear how cutting the SBAs budget, staff, and programs could benefit American small businesses.According to the statement, Trumps agenda is aimed at reversing the broad and costly expansion of the SBA under the Biden Administration. The Trump administration claims the agency has doubled since the pandemic to help hard-hit small businesses through its programs, including the Green Lender Initiative, the Community Navigator Pilot Program, and DEI activities.In the last four years, the agency has veered off trackdoubling in size and turning into a sprawling leviathan plagued by mission creep, financial mismanagement, and waste, said SBA Administrator Kelly Loeffler. Instead of serving small businesses, the SBA served a partisan political agendaexpanding in size, scope, and spending.A full list of the key features of the SBAs reorganization can be found here.