The recent federal shutdown interrupted services critical to small businesses, but the U.S. Small Business Administration (SBA) has now resumed operations, ready to deliver much-needed capital back into the economy. The shutdown, which lasted 43 days, impacted the SBA’s ability to approve loans, costing an estimated $5.3 billion in funding that would have supported over 10,000 small business owners.

During fiscal year 2025, the SBA saw record demand for loans, guaranteeing approximately 84,400 7(a) and 504 loans and delivering a staggering $45 billion to small businesses nationwide. This surge was largely driven by a confident economic backdrop, characterized by rising wages, increased private sector investment, and low inflation. However, the benefits of this economic growth faced a significant setback as the shutdown halted approvals within crucial lending programs that small businesses rely on for expansion, hiring, and operational needs.

“Thousands of American jobs and livelihoods were jeopardized during the longest shutdown in American history – inflicting pain on everyone from our military communities to Main Street,” said Kelly Loeffler, SBA Administrator. This downshift in momentum forced many entrepreneurs to make challenging decisions, including cutting hours for employees or postponing expansion plans.

The immediate reopening of SBA programs means that business owners can access financing options again, allowing them to proceed with hiring, funding projects, or addressing everyday operational costs. The 7(a) and 504 programs, which are vital for small businesses, provide federally guaranteed loans that are crucial for growth and sustainability.

As consumer confidence was high before the shutdown, small business owners had begun to prepare for future investments. However, as federal furloughs took effect, consumer spending in certain areas witnessed declines. This not only put a strain on small business owners but also affected federal contractors, who reportedly lost at least $12 billion in revenue from federal projects.

With the government back to full operation, the SBA is prioritizing support for small businesses to help them regain the momentum lost during the shutdown. “Now that the shutdown has finally ended, the SBA is immediately resuming its operations and rapidly returning to the mission of supporting the historic economic growth agenda of the Trump Administration,” Loeffler emphasized.

What does this mean for small business owners moving forward? The resumption of SBA operations will allow entrepreneurs to access previously unavailable capital, assisting them with their growth strategies in an expanding economy. However, some may face challenges in navigating the backlog of pending loan applications led by demand during the shutdown. Business owners should remain proactive in communicating with lenders and keeping abreast of any updates from the SBA about loan availability and processes.

It’s essential for small business owners to take advantage of the loans offered, considering how much they can contribute to hiring and investing in expansion. The restored access to funds can fuel hiring initiatives, facilitate growth strategies, and potentially stabilize businesses that have been adversely affected by recent economic fluctuations.

For those who managed to stay afloat during the shutdown, now is the time to explore opportunities for scaling—whether that involves hiring new employees, expanding product lines, or investing in marketing efforts. As the economy continues to bounce back, being prepared to take immediate action can position small businesses for long-term success.

In a time where continued access to capital aligns with broader economic goals, owners interested in financing through the SBA would benefit from immediate outreach to lenders and understanding both the opportunities and challenges that lie ahead. The SBA’s commitment to supporting small businesses remains steadfast, and it marks a pivotal moment for entrepreneurs ready to capitalize on the returning momentum.

For further details on the SBA’s operations and resources, visit the official announcement here.

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This article, “SBA Resumes Loan Programs After Federal Shutdown, Unlocking $5B for Small Businesses” was first published on Small Business Trends