If you are a business owner and are hoping to get a loan for small business through the current SBA programs don’t concern yourself with a Federal Government shut down. It sounds a lot worse than it is. The government would cease all non essential programs during a shutdown and business loans backed by the SBA would be among them. Other things like the space program, national parks services and federal employees would be other likely targets but things like Police, Fire and Congress would not be effected. Anything needed to keep America safe and solvent through a crisis would not be effected.
Business owners who are worried about applications with the SBA shouldn’t be too concerned with a shut down. It really sounds a lot worse than it actually is. A government shut down would temporarily stop all non essential programs during a shutdown period and business loans backed by the SBA are not considered essential. Things like the space program, national parks services and federal employees are the other services facing a hit things like Police, Fire and Congress are not. Despite all the sensationalism we hear in the news nothing required to keep America safe and protected during a crisis would be effected.
So it is important for small business to understand that the SBA business loans programs are not the only game in town. Banks and other capital providers are starting to lend again and even though their underwriting process have become more stringent, it doesn’t mean they are not willing to lend. Qualifying for business loans may seem harder to acquire but nothing is further from the truth. The fact that the potential shutdown of SBA programs is looming, it might be a good thing.
It is at this point when I should mention to all business owners that the SBA business loans programs are not the only why to get business loans. Several types of capital providers are stepping up their lending again and even if the underwriting process have become more strict, it doesn’t mean they are not willing to lend. The truth is that is has never been easier to qualify for business loans without the backing of the SBA.. The fact potential shutdown of SBA programs could be considered a blessing in disguise because it will allow these other programs to get more attention. As soon as small business owners begin to scour the capital markets for other options, they will begin to understand that they have several other options and lots of lenders chomping a the bit. For example, bank applications and private money applications are now much easier to understand and loan approvals are faster than they have been in the past.
The big catch with searching out business loans is trying to learn about the best programs in the marketplace and how to best qualify for them. It would be overwhelming for any one person to arm themselves with all the information regarding loan programs but loan consulting business are set up for just that. Good consulting services should have a massive database of programs and understand who is currently lending and to whom they are extending business loans. In general these companies should be able to qualify you for free and guarantee your results. The SBA is not set up to help people find business loans in this fashion.
Visit to find out more about business loans or research any type of loan for small business. Also published at Does A Government Shutdown Affect The SBA?.