Government Shutdown & SBA Loans

As of October 1, the U.S. government has entered a shutdown. While the impacts of this shutdown reach far, many business buyers are asking the same question: “What does this mean for my SBA loan?”

Here are the key takeaways:

• If your loan already has an SBA loan number, you’re in the clear. There will be no disruption at the federal level.

• If your loan is still in process and does not yet have an SBA loan number, expect delays. The SBA will not be issuing loan numbers during the shutdown.

The good news: banks and lenders are still working. Underwriting, credit reviews, and internal approvals are continuing as usual. This means deals can keep moving forward, even if the official SBA submission has to wait.

For buyers in the middle of an SBA funded acquisition, the main impact is timing. You may see closing dates pushed back until the government reopens.

If you’re considering a new acquisition, don’t let this pause deter you. You can (and should) continue working with your lender to prepare everything so that once the government reopens, your file can be pushed through the SBA system without delay.

Bottom line: This is a temporary hurdle, not a deal killer. The SBA remains one of the most effective financing tools for small business acquisitions, and lenders are fully engaged in moving your transaction forward.