Impact of Federal Shutdown on Small Business Lending Programs Revealed
WASHINGTON, Nov. 13, 2025 (GLOBE NEWSWIRE) — The U.S. Small Business Administration (SBA) has disclosed the far-reaching repercussions of the recent federal shutdown on its lending initiatives for small enterprises.
During fiscal year 2025 (FY25), the agency has successfully backed a record 84,400 7(a) and 504 loans, channeling $45 billion to local businesses thanks to an unprecedented demand for funding during the robust economic resurgence under President Donald J. Trump.
However, it is estimated that the agency was unable to facilitate $5.3 billion for 10,000 small businesses during the 43-day hiatus. With a coalition of Congressional Democrats and Republicans now facilitating the government’s reopening, SBA programs are reinstated and will operate without interruptions.
“The longest shutdown in American history endangered countless jobs and livelihoods, affecting everyone from our military sectors to local businesses,” stated SBA Administrator Kelly Loeffler.
In the last 43 days, the government closure obstructed $5 billion worth of SBA-backed capital essential for hiring, investment, and growth, putting over 10,000 small business owners in the precarious position of reducing hours, laying off employees, and postponing their expansion strategies.
With the termination of the shutdown, the SBA is resuming its operations promptly, dedicated to advancing the historic economic growth agenda of the Trump Administration.
Before the shutdown, small business confidence had peaked at its highest level since 2017, thanks to President Trump’s equitable trade policies, historic tax cuts for working families, and deregulation initiatives.
With wages on the rise and over $15 trillion in private sector investments, coupled with a 3.8% GDP growth and low inflation, the SBA witnessed a historical surge in demand for capital as job creators were poised to invest in their businesses’ futures.
Nevertheless, the shutdown stymied approvals across the SBA’s primary 7(a) and 504 programs, designed to offer federally-guaranteed loans for small businesses. These funds are critical for hiring, financing expansion, covering startup expenses, or meeting working capital demands.
In many regions, consumer expenditure dwindled due to federal furloughs and stop-work orders, adversely affecting small business contractors, who suffered losses exceeding $12 billion in revenue from federal contracts.
As of today, the SBA has resumed its full operational capacity and will provide continued updates as it aids small business owners in regaining access to essential programs and capital, all while aligning with President Trump’s pro-growth economic strategies.
The U.S. Small Business Administration champions the American dream of entrepreneurship. As the primary advocate for small businesses within the federal realm, the SBA equips job creators with the necessary resources and support to initiate, nurture, and expand their ventures or recover from declared disasters.
It offers services through a vast network of field offices and collaborations with both public and private entities. For more information, visit www.sba.gov.
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