PROVIDENCE – The partial federal shutdown has paused approvals of new U.S. Small Business Administration-backed loans, the Washington Post reported Friday.
The Post said that the SBA processes roughly 200 loans for working capital and 120 loans per day for commercial properties through its 7(a) and 504 Programs, accounting for roughly $200 million in loans in a given day.
The approval of new loans was halted on Dec. 22.
The SBA does not issue loans, but guarantees them, affecting interest rates on loans offered through SBA-approved lenders.
“At present, the government shut down is only affecting our ability to make SBA 504 loans,” SEED Corp. Executive Director Maria Gooch-Smith told PBN Monday. “Our small loans up to $250,000 are not affected. Those loans are made with SEED funds from previous grants and loans.”
