{"id":21179,"date":"2025-09-27T01:44:28","date_gmt":"2025-09-27T01:44:28","guid":{"rendered":"https:\/\/finderica.com\/?p=21179"},"modified":"2025-09-27T01:44:28","modified_gmt":"2025-09-27T01:44:28","slug":"what-a-government-shutdown-means-for-sba-loans","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=21179","title":{"rendered":"What a Government Shutdown Means for SBA Loans"},"content":{"rendered":"
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If Congress can\u2019t reach an agreement on federal funding by the Sept. 30 deadline, the government will shut down \u2014 leaving small-business borrowers facing uncertainty about new and existing <\/span>SBA loans<\/span>. During a shutdown, the Small Business Administration halts its core lending operations, stopping new loan approvals and delaying existing applications.<\/span><\/p>\n<\/div>\n

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Here\u2019s what small-business owners should expect.<\/span><\/p>\n<\/div>\n

SBA 7(a) and 504 loan processing freezes<\/span><\/h2>\n
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New SBA 7(a) and CDC\/504 loans are paused during a government shutdown, meaning no new loans will be processed or approved during this time. <\/span><\/p>\n<\/div>\n

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Even <\/span>SBA lenders<\/span> with special permission to approve loans on their own, known as delegated authority, can\u2019t issue new loans during a shutdown. This includes members of the preferred lenders program (PLP) and Express lenders.<\/span><\/p>\n<\/div>\n

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An exception applies if a loan has already been assigned an SBA loan number \u2014 either by a lender with delegated authority or by the SBA before the shutdown. In this case, the lender can move forward with disbursing funds.<\/span><\/p>\n<\/div>\n

SBA lenders continue to work with borrowers<\/span><\/h2>\n
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Although SBA 7(a) and 504 lenders cannot process new applications, they will still manage existing loans and assist current borrowers. If you plan to apply for an SBA loan, your lender can help you <\/span>prepare your loan application<\/span> so it\u2019s ready to submit once SBA operations resume.<\/span><\/p>\n<\/div>\n

SBA microloans operate normally<\/span><\/h2>\n
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SBA microloans<\/span> are issued by approved intermediary lenders that receive funding from the SBA in advance. Because of this structure, the program continues to operate without interruption, even during a government shutdown.<\/span><\/p>\n<\/div>\n

SBA disaster loans are available, but with delays<\/span><\/h2>\n
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The SBA will continue to issue and service <\/span>disaster loans<\/span> during a government shutdown<\/span>