The Democratic Members of the Senate Small Business & Entrepreneurship Committee are urging the Small Business Administration (SBA) to address the backlog of loan approvals caused by the government shutdown.
“As members of the Senate Committee on Small Business and Entrepreneurship, we are concerned that the current government shutdown is preventing small businesses from accessing much needed capital through the Small Business Administration’s 7(a) and 504 Loan Guaranty Programs and that the growing backlog of applications will create long delays for loan approvals once the agency reopens,” the senators wrote to SBA Administrator Linda McMahon.
The senators pointed out that the SBA’s loan processing centers are not processing loans during the shutdown, causing small business owners to lose out on an estimated $117 million in capital every day that the government shutdown continues.
“Because capital is the lifeblood of our nation’s small businesses, it is critical that the SBA have a plan in place to address the growing backlog of loan applications so that it can be quickly implemented once the government reopens,” they wrote. “As such, we ask that you provide us with the steps you are taking to ensure that the SBA can quickly and equitably work through the growing backlog of applications. Please let us know if you require additional resources or authorities to meet the needs of these small businesses who are being adversely affected by the government shutdown.”
Sen. Ben Cardin (D-MD), ranking member of the U.S. Senate Committee on Small Business & Entrepreneurship, said this situation is causing hardships for business owners regarding cash flow, access to capital, and the inability to access federal permits.