If you're a small business owner exploring SBA financing, you might be wondering: What happens to my loan application if the government shuts down? While shutdowns create some bumps in the road, they don't have to derail your plans. Here's what actually happens and what it means for you.
The SBA During a Shutdown: What Actually Happens
When the government shuts down, the Small Business Administration operates with limited staff. That means some of their functions slow down or temporarily pause. The part that matters most to you? The SBA's guarantee process—where they review and approve guarantees for loans—can experience delays.
Think of it this way: Your lender (that's us) is ready to process your application and make lending decisions. But we need the SBA to provide their guarantee on the loan before we can fund it. During a shutdown, that guarantee process hits the pause button.
Here's The Good News
You can absolutely still apply for an SBA loan during a government shutdown. We're not going anywhere, and neither is your ambition to grow your business. Here's what continues as normal:
- We'll review your application
- We'll work through underwriting
- We'll make credit decisions
- We can even approve your loan
Your application doesn't sit in limbo—we keep the wheels turning on our end. We're doing everything within our control to move your loan forward.
The Reality Check: Funding Timelines
Here's where things get a bit tricky. Even if your loan is approved and ready to go, we can't fund it until the SBA provides their guarantee. So if a shutdown stretches on, your funding could be delayed.
We know that's not ideal. You've got plans, timelines and probably a few sleepless nights already. The last thing you need is uncertainty.
What We Do About It
At Live Oak, we've been navigating SBA lending for years. We've seen shutdowns before, and we know how to guide you through them. When a shutdown happens, our team tracks the situation closely and keeps you updated every step of the way.
If you've already applied, we push your loan forward as far as we can. If you're thinking about applying during a shutdown, don't let it stop you. The sooner you start, the sooner you'll be ready to fund when things get back to normal.
Bottom Line
Government shutdowns are frustrating, but they're also temporary. Your business goals aren't. We'll be here—ready to process applications, answer questions, and get you funded the moment we're able to.
