AmiSight 10/23: When the Government Shuts Down, So Does SBA Lending

When the federal government shuts down, most people think about the visible stuff—national parks closing, federal workers missing paychecks, travel complicated by delays. But for small business owners trying to get financing, the impact is quieter but more painful. The entire SBA lending system—the one that helps entrepreneurs buy real estate, purchase equipment, and expand their businesses—comes to a standstill.

Both types of SBA lenders get stuck. General Process Lenders must wait on SBA employees to review and approve loans. When they're furloughed, everything stops. Preferred Lenders, even though they make their own credit decisions, still need one final SBA loan number to close a deal. That system goes dark too. No employees, no approvals, no closings.

Head over to my 21Hats column to for the full breakdown.