With another government shutdown, the big question for many small business owners is: What happens to SBA lending, especially 7(a) loans, when the government hits pause?

With deadlines approaching and timelines tight, it’s critical to understand how a shutdown could affect your loan journey and how to stay ahead of it.

What Happens to SBA Loans During a Shutdown?

The SBA 7(a) loan program is backed by federal funding, which means that during a shutdown, much of the SBA's operations, including loan approvals, can grind to a halt. If a shutdown occurs, non-essential SBA staff are furloughed, and loan processing that requires SBA review may be delayed or suspended.

However, Preferred Lender Program (PLP) lenders, those who have the authority to approve loans without prior SBA approval, can still issue approvals and obtain loan numbers during the shutdown using the SBA’s E-Tran system.

What Does This Mean for You?

If you’re working with a non-PLP lender, your loan may be stuck in the queue until the government resumes operations. Even if you're further along in the process, final authorization or closing may be delayed if SBA input is required.

If you're just getting started with your SBA application, the shutdown could push back your timeline unless you act fast or choose the right lending partner.

How to Prepare Your SBA Pipeline

1. Finalize Your Business Plan Now
Lenders move faster when the business plan is done right the first time. A complete, SBA-compliant plan gives underwriters what they need to keep your deal progressing, even in uncertain conditions.

2. Work With PLP Lenders Where Possible
Ask your lender if they have PLP status. If not, consider working with one who does, this can be the difference between moving forward and being stalled.

3. Expect Delays and Communicate Clearly
Let stakeholders know that timelines could shift. Managing expectations with sellers, landlords, and partners helps avoid tension if funding is delayed.

4. Stay in Touch With Your Lender and SBA Advisor
Your lender or advisor may still be able to answer questions, assist with documents, and prep your file, even if SBA systems are temporarily offline.

SBA Lending Doesn’t Stop, But It May Slow

A government shutdown doesn't mean the end of SBA lending. But it does mean potential slowdowns, depending on your lender, loan stage, and paperwork status. That’s why speed, accuracy, and preparation are everything, especially now.

At Rapid Business Plans, we help businesses get SBA-ready fast. From day one, we build bankable business plans that anticipate what underwriters and lenders need, and we help you stay one step ahead, even in times of uncertainty.