U.S. Small Business Administration head Kelly Loeffler multiplied the value of her investment in Elon Musk's SpaceX after she was nominated for the job, earning millions of dollars from the company's record initial public offering, a Reuters review of her financial disclosures showed.
Loeffler invested between $1 million and $5 million as of January 3, 2025, in xAI, Musk’s AI and social media firm that has since merged with SpaceX (SPCX.O), according to a required financial disclosure submitted before she became SBA’s administrator.
Later in 2025, Loeffler invested again in SpaceX and xAI between $1 million and $5 million, according to a separate financial disclosure covering her investments for all of 2025 that she signed on May 14, 2026. Reuters obtained the form from the SBA on June 12.
Loeffler's second investment has not been previously reported. Two independent government ethics attorneys agreed with Reuters' assessment of Loeffler’s disclosure.
Cabinet members use ranges to declare the value of their assets on their required financial disclosure forms, and they do not disclose the dates of their investments before taking office.
SpaceX is a military contractor for the U.S. government. Federal law prohibits cabinet members from participating in decisions involving a company in which they have a financial interest. Public records do not show a financial relationship between SBA and xAI or SpaceX. xAI was not included on the public list of AI tools used by SBA employees in 2025.
Loeffler and her team did not respond to multiple requests for comment about her SpaceX investment.
VALUE OF SPACEX INVESTMENT SOARS
Loeffler’s bet on SpaceX paid off. The company priced the biggest-ever U.S. IPO on June 12, valuing the space, satellite and AI provider at $1.77 trillion.
Her first investment in xAI would have been worth between $7 million and $2.6 billion on the day of the IPO, depending on the exact amount she invested and the date she made it, said Franco Granda, analyst at data provider PitchBook. The second investment would have been worth between $2.2 million and $25.4 million that day, he said.
The earlier the investment, the more it would have been worth at the IPO, he said. xAI's valuation increased by more than 7,000% between its first investment round and January 5, 2025. SpaceX's valuation more than doubled in 2025.
At least 10 Trump administration officials listed investments in SpaceX or xAI on their 2025 financial disclosure forms. None of those officials works for the Defense Department.
Billionaire Musk, a former Trump adviser, is the founder and CEO of SpaceX.
Loeffler initially invested in xAI via a private placement, according to her disclosure form. Private placements are typically open to select individuals and institutions with significant financial resources.
Loeffler is a wealthy businesswoman. She was the founding chief executive at Bakkt, a bitcoin trading platform, and spent 16 years working at Intercontinental Exchange, the firm that owns the New York Stock Exchange, according to her LinkedIn profile. She is married to Intercontinental Exchange CEO Jeffrey Sprecher. Loeffler briefly represented Georgia in the Senate.
The SBA helps entrepreneurs start and build their small businesses, according to the agency website. It connects business owners with lenders and funding to help them recover from natural disasters, among other responsibilities. The Senate confirmed Loeffler as SBA administrator on February 19, 2025.
