SBA Loan Financing through the Government Shutdown

SBA Loan Financing through the Government Shutdown.

What is the Impact? Should you move ahead with your SBA loan?

These are a few of the questions that my clients have asked as maneuver through what appears to be never ending shutdown. Thankfully, the end appears to be close, even this week.

Should this situation arise again and it may, it would be better armed with knowledge and predictable outcomes (as much as possible).

Key items to note:

The application, underwriting and commitment letter processes do not change. The timing may be extended depending on when the shutdown ends as most Lenders will have a backlog of SBA loans to close and as soon as possible.
Choosing a preferred lender could work to your advantage as they will know exactly what to do throughout the entire process. There are also SBA lenders without preferred status who are quite knowledgeable. Choosing the right SBA lending partner is paramount!
The true impact occurs within the closing process. Good Lenders have a timeline to share as to when the process is complete. With the shutdown, a lender can continue to move towards closing but they must pause until they secure the SBA authorization.
The SBA authorization number must be obtained to close the loan. Banks cannot obtain this number until the Government reopens.

What happens next is the SBA loans waiting for authorization numbers are placed in a queue. As soon as the Authorization number is secured, the loan may be closed.

To answer the key questions: Yes, you may apply for SBA financing and with a government shutdown there will be some delays. With a Good SBA lending partner, you will be informed of the process, delays as they arise and ultimately get to the closing table!

If you are applying for an SBA for the very first time, have had challenges finding the right Lender, or simply are having challenges with all the paperwork, a Loan broker well versed in SBA financing with contacts with the Top 10 SBA Lenders in the Country is incredibly valuable.

Martin Financial Resources LLC has professionals with decades of experience in the industry. Feel free to contact us at: Arlene@Martinfinancialresources.com or 262-909-7899