Trump’s War on Economic Mobility: Destroying Education and Small Business Support
From Student Loans to Small Business Funding, Trump Is Blocking Every Path to Opportunity
For generations, America has sold itself as the land of opportunity, a nation where hard work and determination can break the chains of poverty. But under Trump’s administration, that promise is being shattered. Not by accident. By design.
Through a brutal combination of executive orders, workforce cuts, and defunding efforts, Trump’s administration is methodically tearing down the pathways to economic mobility for marginalized communities. From gutting higher education access to decimating the very agencies meant to support minority-owned businesses, Trump’s policies are making one thing abundantly clear: If you’re not wealthy, you don’t deserve a future.
Destroying Access to Higher Education
The first pillar of economic advancement Trump’s administration is demolishing is higher education. The message is unmistakable: If you can’t pay, you can’t play. And if you’re a low-income, first-generation, or minority student? You’re being shut out and left behind.
Collapsing the Federal Student Loan System
Trump’s March 20, 2025, executive order was nothing short of catastrophic. The order dismantled the Department of Education (DOE), scattering its responsibilities to other agencies. But perhaps the most destructive decision of all? Dumping the $1.6 trillion federal student loan portfolio onto the Small Business Administration (SBA), an agency never meant to handle the needs of over 45 million borrowers.
But here’s the kicker: The SBA is not just unprepared for this task; it’s being actively sabotaged.
While being forced to manage this massive portfolio, the SBA is undergoing a 43% staffing cut, eliminating nearly 2,700 positions as part of Trump’s Department of Government Efficiency plan. The cuts specifically target positions related to diversity, equity, inclusion, and COVID-19 relief programs, the very areas meant to ensure fairness and opportunity for underserved communities.
What happens when you take a poorly equipped agency and drown it in impossible responsibilities? You guarantee chaos. And for millions of Americans, that chaos means financial devastation.
Catastrophic Consequences for Borrowers
Income-Driven Repayment (IDR) Plans and Public Service Loan Forgiveness (PSLF): These essential programs are already caught in legal battles and are now at risk of total collapse.
Millions of Borrowers in Limbo: More than 12 million borrowers rely on IDR plans, and over 1 million had pending PSLF applications when Trump’s policies brought the system to a screeching halt.
Disproportionate Harm to Marginalized Communities:
20% of Black and 13% of Hispanic borrowers rely on IDR plans.
Nearly 50% of Black and 34% of Hispanic borrowers work in public service roles eligible for PSLF.
This isn’t just a bureaucratic nightmare. It’s an economic death sentence for millions of students and graduates who believed they were working toward a better life. Instead, they’re being fed to the wolves.
For a deeper dive into how Trump’s actions are sabotaging student loans, read our article on PSLF here:
And our analysis of the overall student loan crisis here:
Defunding Universities That Promote Diversity
Trump’s assault on higher education goes beyond just destroying the student loan system. His administration is actively financially crippling universities that dare to support Diversity, Equity, and Inclusion (DEI) or refuse to bow to his political agenda.
The prime example? Under Trump's orders, Columbia University was recently stripped of $400 million in federal funding. The stated justification? Alleged antisemitism and support for DEI programs. The real reason? Punishing universities that dare to prioritize equity and inclusion.
And Columbia is just the tip of the iceberg. Over 50 universities are under investigation for supposedly violating Trump’s new, politically-motivated standards. The fallout is brutal:
Scholarships and Grants Are Being Destroyed: The financial aid that helps low-income and marginalized students attend college is drying up.
Academic Integrity Is Under Siege: Political interference is turning respected universities into tools of propaganda rather than institutions of learning. To regain federal funding, the University was mandated to put many programs under government oversight.
Higher Education Becomes a Luxury: As public universities lose funding, the only remaining option for quality education will be elite private colleges accessible only to the wealthy.
Trump’s message couldn’t be more explicit: If you’re not rich, you don’t deserve a chance.
Destroying the Second Path: Small Business Ownership
If Trump’s administration has made higher education a dead end for marginalized communities, the only other path to economic stability — entrepreneurship — is being deliberately cut off.
Overloading and Gutting the SBA
The Small Business Administration (SBA) was built to be a lifeline for aspiring entrepreneurs, especially those from underserved communities. Its mission has always been to provide access to capital, resources, and guidance that mainstream financial institutions deny to those without generational wealth. Programs like 7(a) and 504 loans offer lower interest rates and better terms to those locked out of traditional financing. Disaster Relief Loans keep businesses afloat when the unexpected strikes. And technical assistance and grants are designed to empower minority-owned, women-owned, and economically disadvantaged businesses to thrive against the odds.
But Trump’s administration is taking a wrecking ball to all of it.
By dumping the $1.6 trillion federal student loan portfolio on the SBA and slashing its workforce by 43%, Trump is ensuring the agency is incapable of doing its job. The programs meant to level the playing field for marginalized entrepreneurs are being methodically dismantled.
The Economic Destruction of Minority Entrepreneurs
Even before Trump’s sabotage, minority-owned businesses faced staggering disparities:
Loan Denial Rates: Black-owned businesses face a 42% denial rate compared to 16% for White-owned businesses. Hispanic-owned businesses see nearly 20% denial rates.
Higher Interest Rates: Black business owners are charged an average interest rate of 7.8%, compared to 6.4% for White-owned businesses.
Reliance on Personal Funds: Because of discriminatory practices, Black and Hispanic entrepreneurs are three times more likely to rely on personal savings to fund their businesses.
Trump’s actions ensure that economic power remains locked in the hands of the privileged few.
View our reporting on Trump’s earlier executive order gutting other small business agencies here:
Connecting the Dots: A Coordinated Attack
Let’s stop pretending this is all a series of unfortunate mistakes. It’s not. It’s a calculated assault on economic mobility designed to rip opportunity away from those who need it most. The pattern is undeniable.
Trump’s administration is attacking the two most reliable paths to economic advancement:
Higher Education: By dismantling the Department of Education, dumping student loans on a crippled SBA, and defunding universities that promote Diversity, Equity, and Inclusion, Trump is making higher education a privilege of the wealthy. If you’re Black, Brown, Indigenous, low-income, or the first in your family to attend college, Trump’s policies are designed to keep you locked out.
Small Business Ownership: By overloading the SBA with a $1.6 trillion student loan portfolio and gutting its workforce by nearly half, Trump is dismantling one of the only agencies designed to provide access to capital for minority entrepreneurs. Simultaneously, he’s defunding the Minority Business Development Agency (MBDA) and destroying the Community Development Financial Institutions (CDFI) Fund (see the linked article above).
This isn’t incompetence. It’s systematic destruction aimed at shutting down every available path to economic stability for marginalized communities.
It’s a deliberate effort to maintain power and wealth in the hands of the privileged few by cutting off the most vulnerable communities from any chance at a better future. And once the SBA collapses under the weight of Trump’s sabotage, those entrepreneurs will be left with nothing but high-interest private loans and the cold, closed doors of corporate banks.
What Trump is building isn’t an America of opportunity. It’s a fortress of exclusion, where only the rich can thrive, and everyone else is left to fight over the scraps.
Call to Action
This isn’t just policy failure. It’s a ruthless effort to crush the dreams and futures of millions of Americans. If you care about economic justice, fair access to education, and the ability to start a business and build a future, then the time to act is now.
Here’s what you can do:
Contact Your Representatives: Demand they fight back against Trump’s attempts to dismantle the Department of Education, destroy the SBA, and gut minority-focused agencies. Insist on protections for federal student loan programs and minority-owned businesses.
Support Advocacy Organizations: Contribute to groups fighting for equitable access to education and economic opportunity for marginalized communities. Their work has never been more critical.
Spread the Word: Share this article. Talk to your friends, family, and community about what’s happening. The more people understand the truth, the stronger our collective voice becomes.
Organize and Mobilize: Join grassroots movements dedicated to fighting for economic justice. Demand that lawmakers protect programs meant to empower those most in need.
The stakes couldn’t be higher. Trump’s administration is burning down the ladders of opportunity to keep power and privilege concentrated at the top. We cannot afford to sit silently by while the foundations of economic mobility are turned to ashes.
You power the Coffman Chronicle—no billionaires, no corporate overlords. Help us expose the BS, deliver sharp insights, and keep you informed.
You can fuel the fight and join the movement for just $8 a month or $80 a year.
Not ready to subscribe? No worries, chaos loves company, and you're always welcome.
Bibliography:
Minsky, Adam. "Trump Says Student Loan System Moving to SBA, Jeopardizing Loan Forgiveness and Repayment Programs." Forbes, March 21, 2025.
"Trump Issues March 2025 Executive Order to Gut and Close Education Department." Higher Ed Dive, March 20, 2025.
"Trump Executive Order Dismantles Department of Education, Shifts Loan Management to SBA." CBS News, March 20, 2025.
"Donald Trump Education Executive Order, Elon Musk Pentagon – US Politics Latest Updates." The Guardian, March 21, 2025.
"SBA Data Show Major Increase in Loans to Black-Owned Businesses Under Biden-Harris Administration." SBA.gov, September 21, 2023.
"Trump Transfers Student Loan System to Small Business Administration." Investopedia, March 21, 2025.
"Gutting CDFI Fund & MBDA: Latest Example of Administration’s Hostility Toward Small Business Programs." Small Business Majority, March 21, 2025.
"Teachers Union Sues Education Department Over Halted Student Loan Programs." The Guardian, March 19, 2025.
"SBA Loan Approval Data by Race and Gender." Bankrate, 2023.
"Racial and Ethnic Disparities in Mortgage Lending: New Evidence from Expanded HMDA Data." arXiv, May 2024.
"Student Loan Debt by Race [2024]." Education Data Initiative, February 2024.
"The Student Loan Default Divide: Racial Inequities Play a Role." Pew Trusts, December 2024.
"Black Homebuyers More Likely to Be Denied Mortgage." LendingTree, August 2024.
"Average Student Loan Debt By Race." Bankrate, October 2023.
"Racial Disparities in Student Loan Affordability." Jobs for the Future (JFF), 2024.