EXCLUSIVE — Small Business Administration Administrator Kelly Loeffler defended her decision to support the suspension of third-party cybersecurity assessment and audit requirements for small defense contractors, despite the cybersecurity risks posed by artificial intelligence.

In an interview with the Washington Examiner at K-Form, a small defense contractor in Sterling, Virginia, Loeffler said suspending Cybersecurity Maturity Model Certification phase II requirements to provide time for a 60-day review strikes the correct balance between protecting the firms and sensitive government information from cybersecurity risks in reducing compliance burdens as the country seeks to strengthen the national security supply chain, particularly during the Iran war.