Government Shutdown Nears End: Relief in Sight for Stalled SBA Loans
Government Shutdown Nears End: Relief in Sight for Stalled SBA Loans
For more than 40 days – marking the longest government shutdown in U.S. history – the SBA has been virtually shuttered, stalling loan approvals, guarantees, and closings essential to your practice. If you're among the many awaiting finalization of a 7(a) loan for a book of business acquisition, 504 financing for office expansions, or support for partner buyouts, we understand the strain: postponed successions, halted growth, and liquidity squeezes at a time when client needs demand your focus.
Resolution appears imminent, potentially quicker than foreseen. As of November 10, the Senate has progressed a bipartisan agreement to reopen the government, with a 60-40 vote advancing a funding measure to resolve the deadlock.
What's Ahead – and How Quickly Might SBA Operations Resume?
The legislation requires House endorsement and the President's approval, but legislators are acting swiftly. Senate Majority Leader John Thune noted "positive momentum" in discussions, with indications the House might reassemble as soon as tomorrow (November 11) to approve it. Assuming no final obstructions – such as a hold from an individual senator – analysts forecast the shutdown concluding later this week, possibly by Wednesday or Thursday.
Specifically for the SBA:
Swift Operational Restart Anticipated: Upon enactment, the agency – having furloughed the majority of its 3,000+ employees since October 1 – will focus on core functions like loan guarantees and disaster support. Drawing from the 2018-2019 shutdown, SBA activities for pre-approved cases typically recommence in 24-48 hours, with backlogs resolved within 1-2 weeks.
Your Transactions Prioritized: Should your application for a practice buyout or succession financing predate the shutdown, or if you possess a conditional approval, expect expedited handling. The SBA has evaluated the impact – jeopardizing over $45 billion in loans for 85,000 businesses in FY 2025 – and is prepared for the influx.
Potential Delays Noted: While core lending should rebound quickly, broader effects like air travel issues and food aid interruptions may indirectly influence timelines, though SBA's advisor-focused programs remain independent.
Brighter Prospects: Recoveries Drive Momentum
Shutdowns conclude – frequently resurfacing more resilient. Following 2019, SBA loan activity surged 20% in the ensuing quarter amid accumulated demand.
AdvisorLoans: Tailored Financing for Advisors
At AdvisorLoans, we prioritize impartial, transparent advice tailored to your goals. Our process is straightforward and designed with your best interests in mind. Whether it's evaluating the viability of your loan request, identifying potential roadblocks, or crafting solutions for equity injection or collateral, we’ve got your back. We’ll help you weigh SBA versus conventional financing, highlight workarounds when challenges arise, and ensure the financial strategy aligns with your bigger picture. Experienced, resourceful, and candid, we’re here to help you make the right move for your practice.