How Government Shutdowns Disrupt SBA Loan Processing

If you're waiting on an SBA loan approval, prepare for significant delays.

As of October 1, 2025, the federal government has shut down due to disagreements over a funding bill, forcing the Small Business Administration to suspend most operations. SBA loan applications are now on hold, approvals are paused, and disbursements have stopped entirely.

For business owners counting on these funds for cash flow or expansion plans, this creates real uncertainty. When the government resumes operations, the SBA will likely face a substantial backlog of pending applications and fund disbursements, meaning even after the shutdown ends, you may experience additional lag time before receiving your funds.

Apply Now

Navigating this Financial Setback

While this could be a major issue for businesses relying on SBA funds, there are other options out there to help cover the gap. Alternative financing options can provide resources to cover cash flow, purchase equipment, purchase inventory, and cover payroll. With programs like working capital, equipment financing, and revolving line of credit.

Working Capital

Working capital programs offer a great alternative to an SBA loan for businesses looking for

fast capital; funds can typically be disbursed within 24 hours of applying and offer flexible repayment terms. This program is often used to cover payroll, gap receivables, and help with expansion costs.

Equipment Financing

Equipment financing is a great alternative for businesses looking to purchase equipment and receive tax benefits. This program has a longer closing time, but offers access to a larger amount of capital (up to $2 million), lower interest rates, and tax write-offs. 

Revolving Line of Credit

A revolving line of credit is one of our most premium programs, with good reason. Like a credit card, your business has access to a set amount of capital (you can be approved anywhere from $1,000 - $275,000) for a period of time (typically between 9 -24 months), you can draw as needed and pay it back through the term, only being charged interest on what is drawn. This program offers business owners extended access to funds.

This government shutdown may have left many small businesses without access to much-needed capital. However, there are alternative options out there, such as working capital, equipment financing, and revolving lines of credit that offer quick access to capital. Connect with a representative today to see which program best fits your needs!

Apply Now