Government shutdown puts small business loans in limbo
Posted Oct 16 2013 7:40am
The government shutdown will stop processing new requests for small business loans guaranteed by the US Small Business Administration.
Yesterday, lenders scrambled to approve SBA loans before the shutdown. The National Association of Government Guaranteed Lenders said SBA processed a record $600 million in loans before funding ran out.
We understand that loans submitted after that time and into FY 2014 will be placed in a queue, the trade group said in a statement on its website.
The SBA will continue only a few programs, including disaster relief loans, according to the agencys planning document for the shutdown.
In the Dallas-Fort Worth region, the SBA has seen an uptick in loans in the fiscal year that ended Sept. 30.
From October to August, the Dallas area SBA district office backed 1,338 loans totaling $716 million. Thats up from 1,320 loans totaling $548.4 million during the same period last year.
Besides its signature loan program, the SBA has shut down other activities, including:
women-owned small business federal contracting program
SCORE, which provides free business counseling to entrepreneurs