How the Government Shutdown Impacts SBA Loans — What Westchester County Business Owners Need to Know
When most people hear about a government shutdown, they think of closed national parks or delayed federal paychecks. But one area that’s often overlooked — and deeply affected — is SBA lending. For Westchester County small business owners relying on SBA 504 loans or other types of government-backed financing, a shutdown can bring the lending process to a standstill.
What Happens to SBA Loans During a Government Shutdown?
When the federal government shuts down, the Small Business Administration (SBA) effectively hits pause. No new loan authorizations, funding numbers, or SBA 504 loan underwriting are processed. Even lenders with delegated authority can’t close loans because every SBA loan requires an official authorization number before it can fund.
That means only loans that already received their funding numbers before the shutdown can proceed to closing. A handful of deals will still make it through, but most SBA loans in New York — especially those in Westchester County — will remain on hold until the government reopens.
How SBA Lenders in Westchester County Are Managing the Delay
Here in Westchester County, NY, lenders like us are still working diligently behind the scenes — clearing conditions, gathering documentation, and preparing files so that once the SBA resumes operations, we can move quickly to close.
If the government shutdown wraps up within a week or two, the disruption to SBA loan processing in New York should be minimal. However, if it extends into November or longer, the slowdown could become much more serious.
Some lenders may be forced to furlough staff or delay closings, and borrowers waiting on SBA 504 financing or commercial real estate loans in Westchester County could face longer funding timelines. The ripple effect could touch multiple industries, impacting the local economy well beyond lending.
What Small Business Borrowers Can Do Right Now?
If you’re currently applying for an SBA loan, don’t lose momentum. Stay in close contact with your lender, complete any outstanding conditions, and be ready to move forward once SBA operations restart. Borrowers who are fully prepared will be first in line when funding resumes.
Final Thoughts
The government shutdown’s impact on SBA loans in Westchester County is a reminder of how interconnected our financial systems are — and how vital it is to stay proactive during uncertain times. If you’re pursuing an SBA 504 loan, SBA 7(a) loan, or any kind of commercial real estate financing in New York, working with an experienced SBA lender can make all the difference.
Need guidance on SBA 504 or commercial real estate financing in Westchester County, NY?
Our team helps New York business owners stay prepared so their loans can close as soon as the SBA reopens. Contact us today to discuss your financing strategy.
