NEWARK, NJ – The future of the federally operated Small Business Administration in Newark could be in jeopardy.

A bill introduced in the U.S. Senate last month would require the Small Business Administration (SBA) to relocate regional and local offices out of sanctuary jurisdictions, with strict deadlines and penalties for noncompliance.

The Save SBA from Sanctuary Cities Act of 2025, received by the Senate on June 9 and referred to the Committee on Small Business and Entrepreneurship, mandates that the SBA Administrator publicly identify each office located in a sanctuary jurisdiction and relocate those offices to areas that do not meet that definition.

A “sanctuary jurisdiction” is defined in the bill as any political subdivision that limits communication or cooperation with federal immigration authorities, specifically policies that prohibit local officials from sharing information about individuals’ immigration status with federal, state, or local agencies.

Once an office is designated as being in a sanctuary jurisdiction, the Administrator must relocate it within 120 days. Offices not moved by the deadline must cease operations, and staff must be reassigned to other offices outside sanctuary jurisdictions, either within the same state or elsewhere if no such in-state office exists.

If an office misses the relocation deadline, the office head must submit a written explanation to the Administrator within five days. The Administrator is authorized to remove the office head if no explanation is submitted or if the reasons are found to be insufficient.

“The Administrator shall relocate each covered office located in a sanctuary jurisdiction,” the bill states, adding that no new SBA offices may be opened in those jurisdictions moving forward.

The legislation applies to any SBA regional, district, or local office funded through Congressional appropriations, excluding SBA headquarters.

The proposed act has not yet been scheduled for a Senate vote.

The bill would prohibit the SBA from operating in jurisdictions that limit cooperation with federal immigration enforcement.

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