SBA 504 Loans in the Time of Government Shutdown

The shutdown of the Federal Government creeps forward in this petty pace and we hazard no guess as to when the matter will be concluded. However, as it will, at some point be concluded, the game remains afoot and we need to be prepared for such.

Any loan is a process, from initial discussion to application to approval to closing to funding. Thus, the focus must remain on the point in the process at which your find yourself. For applications, underwriting should continue with the gathering of information and resolution of questions. The shutdown is unlikely to have any significant impact on SBA's standards and criteria. And, while debenture fundings are largely out of the question, closings of the interim loan are still possible with distinct limits.

Any closing contemplated should adhere in all aspects to the existing approved SBA Terms & Conditions. When there is a deviation, the Lender must consider the risks to the possibility of SBA's approval of any action. If a bridge loan is required, in the absence of an existing SBA approval, the bridge needs to be structured so as to remain SBA eligible.

The Business Initiative Corporation of New York is ready to assist in these determinations and will make every effort to support our participating Lenders and Applicants.