SBA Lending After the Government Shutdown

It’s been a record-setting shutdown bur the federal government may be finally set to reopen, and if you’re a small business waiting on SBA loans, that’s welcome news. Here’s what you need to know about the restart process at the Small Business Administration (SBA), and how to prepare.

Preferred Lender Program (PLP) Lenders Move Faster

If you’re working with a PLP lender like Mission Bank, you’re in luck. These lenders have delegated authority to approve loans internally, meaning they can issue approvals and obtain loan numbers quickly once SBA systems reopen. Non-PLP lenders, however, will face longer waits as SBA staff work through the backlog.

Immediate System Reboot

Once funding is restored, SBA systems like E-Tran and CAFS typically come back online within 24–48 hours, allowing lenders to start submitting applications again. Furloughed staff will return, but full operational capacity may take several days as teams clear backlogs and reassign priorities.

Expect Backlogs

During the shutdown, SBA’s core programs—7(a) and 504 loans—were frozen, blocking an estimated $170 million in financing per day and leaving thousands of applications in limbo. When operations resume, these pending files will flood the system, creating delays that could stretch for weeks, especially for non-PLP loans that require SBA review.

What Business Owners Should Do

• Get Your Documents Ready: Complete financial statements, tax returns, and business plans now so your application can move immediately when systems restart.
• Communicate With Your Lender: Confirm whether they have PLP status and ask about their post-shutdown process.
• Consider Interim Financing: Bridge loans or lines of credit can help maintain cash flow until SBA funds are released.

The reopening of the government will unlock billions in SBA-backed capital, but patience is key. While some loans may close within days, others could take weeks to clear the backlog. By preparing now and working closely with your lender, you can minimize delays and position your business for a strong rebound.