As the federal government shutdown enters its second week, many borrowers are wondering how this affects their Small Business Administration (SBA) loan applications and existing loans. Unfortunately, with no resolution in sight, several key SBA functions are temporarily paused.

Here's a high-level overview of what you need to know:

What is currently unavailable?

• New SBA loan approvals are on hold
• Loan increases and reinstatements cannot be processed
• Verification services, like IRS and non-citizen status checks, are not available

What is still working?

• Loan servicing is still active for existing SBA loans, except increases or reinstatements
• Disaster loan support continues as disaster employees are not affected by the shutdown
• SBA staff can still assist with critical servicing and liquidation actions that protect government interests

Can I still apply for a new SBA loan?

You can begin the application process with your lender, but new loan approvals are paused until the government reopens. Lenders can prepare your loan but cannot submit it to the SBA for final approval.

What does this mean for those already in the process of applying for an SBA loan?

If you’re in the process of applying for an SBA loan, expect delays. While lenders can still prepare your loan package, they can’t submit it for approval until the shutdown ends.

What does this mean if I already have an SBA loan?

If you already have an SBA loan, most servicing actions are still available, but some changes (like increasing your loan amount) will need to wait.

In conclusion

If you’re unsure how the shutdown affects your loan or application, the best step is to contact your banker or loan officer directly. They can provide guidance specific to your situation and help you navigate any delays or changes. Staying informed and proactive will help you make the best decisions during this uncertain period.