The U.S. Small Business Administration said Nov. 13 the cumulative impact of the federal shutdown prevented the agency from delivering $5.3 billion to 10,000 small businesses during the 43-day funding lapse.
The SBA said it based its estimates on the volume of loans made on its small business lending programs so far this year. For fiscal year 2025, the agency guaranteed a record 84,400 7(a) and 504 loans, delivering $45 billion to Main Street business. The agency said now that the government is reopened, SBA’s programs are once again available and will resume operation without delay.
Prior to the shutdown, small business confidence had reached its highest level since 2017.
The shutdown halted approvals within SBA’s flagship 7(a) and 504 programs, which provide federally guaranteed loans for small businesses who typically use the funds to hire, finance expansion, fund startup costs, or meet working capital needs. In many parts of the country, consumer spending declined as a result of federal furloughs and stop work orders – impacting the nation’s small business contractors, who lost at least $12 billion in revenue from federal projects.
“Over the last 43 days, the shutdown blocked $5 billion in SBA-guaranteed capital that fuels hiring, investment, and expansion – forcing more than 10,000 small business owners awaiting commercial loan closings into the difficult position of cutting hours, laying off workers, and shelving expansion plans,” said SBA Administrator Kelly Loeffler. “Now that the shutdown has finally ended, the SBA is immediately resuming its operations.”
