October 1, 2025: SBA Suspends New Loan Applications Due to Government Shutdown

In an official notice to SBA Approved Lenders, the SBA announced: "SBA will close its Capital Access Financial System (CAFS), suspending acceptance of new loan applications for both the 7(a) and 504 loan programs in E-Tran."

Lenders will not be able to access SBSS from ETRAN. SBA Score is not relient on ETRAN and will still be able to provide SBSS scores to business owners.

This means that no new loans will be processed or approved until the government re-opens. Even SBA lenders that have special authority to approve SBA loans on their own, including preferred lenders and express SBA lenders, are not allowed to issue loans.

What Small Business Owners Need to Know

• Even though the SBA is not directly processing new loan applications, small businesses can still work with their lender or broker to prepare the necessary documents and applications.
• Lenders are still underwriting applications, but are unable to get guarantee authorization from the SBA, which means that funding can’t occur.
• Once the government shutdown is lifted there will be an extended SBA approval wait time because of the backlog of applications.
• Despite the SBA not allowing for new applications, business owners in need of working capital are urged to apply for non-SBA backed loans.

Can I Get an SBA Loan During the Government Shutdown?

No, new SBA loans cannot be approved during the government shutdown. As of October 1, 2025, the SBA has completely halted processing of all new loan applications. The SBA's loan processing systems are offline, and no new SBA loan numbers can be issued until the government reopens.

The only exception: If your loan already received an SBA authorization number before October 1, 2025, your lender can still disburse those funds.

SBA loans are not available for new applicants during the 2025 government shutdown. This affects:

• SBA 7(a) loans (including SBA Express)
• SBA 504/CDC loans
• SBA Microloans
• All other SBA-guaranteed loan programs

How Long Will SBA Loans Be Unavailable?

SBA loan processing will remain suspended for the entire duration of the government shutdown. Historical government shutdowns have lasted anywhere from 1 day to 35 days. Once the government reopens, expect:

• 24-48 hours for SBA systems to come back online
• 2-4 weeks of delays due to application backlog
• Priority processing is typically first-come, first-served when systems restart

Alternatives to SBA Loans During Government Shutdown

If you need immediate funding, consider:

• Conventional bank business loans
• Business lines of credit
• Equipment financing
• Invoice factoring
• Online business lenders
• Community Development Financial Institutions (CDFIs)
• State and local small business loan programs

SBA lenders are still internally underwriting applications. Loans will not be able to be cleared for guarantee. SBAScore.com is monitoring the SBA halt and still has the ability to provide SBSS and SBA Likelihood scores.