SBA Administrator's Investments in SpaceX and xAI Raise Ethics Concerns

The US Small Business Administration (SBA) exists to help entrepreneurs launch, grow and recover their businesses through loans, funding and support. But the financial investments of its administrator, Kelly Loeffler, are now drawing attention after it was found that she significantly increased her stake in Elon Musk’ s SpaceX and xAI while leading the agency. Loeffler’s investments have become a talking point because the SBA is responsible for supporting millions of small businesses across the United States, even though there is no public evidence that the agency has financial ties with either SpaceX or xAI. According to Reuters, federal law prohibits Cabinet members from participating in decisions involving companies in which they have a financial interest. Public records, however, do not show any financial relationship between the SBA and either SpaceX or xAI. The report also noted that xAI did not appear on the SBA’s public list of artificial intelligence tools used by agency employees in 2025. According to Reuters, financial disclosures showing that Loeffler invested between $1 million and $5 million in xAI by January 3, 2025, before becoming SBA administrator. A second financial disclosure, signed on May 14, 2026, showed that she invested another $1 million to $5 million in SpaceX and xAI during 2025. Reuters obtained the filing from the SBA on June 12. According to Reuters, this second investment had not been previously reported. Cabinet officials disclose their assets using value ranges rather than exact amounts, and the filings do not reveal the exact dates on which investments were made before taking office. The value of Loeffler’s investment rose sharply after SpaceX launched its record-breaking initial public offering on June 12, which valued the company at $1.77 trillion. Franco Granda, an analyst at data provider PitchBook, estimated that her first investment in xAI could have been worth anywhere between $7 million and $2.6 billion on the day of the IPO, depending on when she invested and the exact amount. Her second investment could have been valued between $2.2 million and $25.4 million. Granda said earlier investments benefited the most because xAI’s valuation increased by more than 7,000% between its first funding round and January 5, 2025. SpaceX’s valuation also more than doubled during 2025. Reuters found that at least 10 officials in the Trump administration disclosed investments in SpaceX or xAI in their 2025 financial filings. None of those officials works at the Defense Department. SpaceX, founded and led by Elon Musk, is a major contractor for the US military. Musk also founded xAI and was previously an adviser to President Donald Trump. Loeffler invested in xAI through a private placement, according to her disclosure. Such investment opportunities are generally available only to wealthy individuals and institutions. Before joining the Trump administration, Loeffler built her career in finance. She was the founding chief executive of Bakkt, a cryptocurrency trading platform, and spent 16 years at Intercontinental Exchange, the parent company of the New York Stock Exchange. She is married to Intercontinental Exchange CEO Jeffrey Sprecher and previously served as a U.S. senator representing Georgia before being confirmed as SBA administrator on February 19, 2025. As scrutiny over the financial interests of senior government officials continues, Loeffler’s SpaceX investments have added another layer to the discussion around ethics and transparency. No public records suggest the SBA has worked with SpaceX or xAI, the disclosures have renewed attention on how personal investments are managed by officials overseeing agencies responsible for serving millions of American small businesses.