Breaking News: Government Shutdown Halts SBA Lending

Effective October 1, 2025, all new SBA loan processing and approvals are suspended until the government reopens
The SBA has confirmed it will not maintain an application queue during the shutdown
Exception: Loans that received SBA authorization numbers before the shutdown may proceed with fund disbursement

October 1, 2025: SBA Suspends New Loan Applications Due to Government Shutdown

11/13/2025 Update: The government has reponed and the SBA has resumed processing SBA loans.

In an official notice to SBA Approved Lenders, the SBA announced: "SBA will close its Capital Access Financial System (CAFS), suspending acceptance of new loan applications for both the 7(a) and 504 loan programs in E-Tran."

This means that no new loans will be processed or approved until the government re-opens. Even SBA lenders that have special authority to approve SBA loans on their own, including preferred lenders and express SBA lenders, are not allowed to issue loans.

What Small Business Owners Need to Know

Even though the SBA is not directly processing new loan applications, small businesses can still work with their lender or broker to prepare the necessary documents and applications.
Lenders are still underwriting applications, but are unable to get guarantee authorization from the SBA, which means that funding can’t occur.
Once the government shutdown is lifted there will be an extended SBA approval wait time because of the backlog of applications.
Despite the SBA not allowing for new applications, business owners in need of working capital are urged to apply for non-SBA backed loans.

Can I Get an SBA Loan During the Government Shutdown?

No, new SBA loans cannot be approved during the government shutdown. As of October 1, 2025, the SBA has completely halted processing of all new loan applications. The SBA's loan processing systems are offline, and no new SBA loan numbers can be issued until the government reopens.

The only exception: If your loan already received an SBA authorization number before October 1, 2025, your lender can still disburse those funds.

SBA loans are not available for new applicants during the 2025 government shutdown. This affects:

How Long Will SBA Loans Be Unavailable?

SBA loan processing will remain suspended for the entire duration of the government shutdown. Historical government shutdowns have lasted anywhere from 1 day to 35 days. Once the government reopens, expect:

24-48 hours for SBA systems to come back online
2-4 weeks of delays due to application backlog
Priority processing is typically first-come, first-served when systems restart

Alternatives to SBA Loans During Government Shutdown

If you need immediate funding, consider:

Conventional bank business loans
Business lines of credit
Equipment financing
Invoice factoring
Online business lenders
Community Development Financial Institutions (CDFIs)
State and local small business loan programs

SBA lenders are still internally underwriting applications and can still issue pre-approvals based on SBSS and other underwriting benchmarks. Loans will not be able to be cleared for guarantee. FastWaySBA is monitoring the SBA halt and is still processing loan applications preparing to fund once the government is re-opened.

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