As of October 14, 2025, the U.S. government remains in a shutdown that began on October 1, halting many federal operations, including those of the Small Business Administration (SBA). While this ongoing situation has created uncertainty for entrepreneurs and franchisors seeking SBA funding, the good news is that your funding journey does not have to stop.
At Benetrends, we continue to operate at full capacity, helping clients prepare everything they will need to move forward as soon as SBA processing resumes. From completing business plans and gathering documentation to exploring alternative funding options, there is still important work to be done.
What’s Happening with SBA Loans
Here’s a breakdown of how the shutdown is affecting SBA operations and what it means for borrowers:
- New Loan Approvals on Hold:
The SBA is not currently processing or approving new 7(a) and 504 loans. Lenders can continue preparing and organizing applications, but final approvals cannot be issued until the government reopens. - Applications in Progress:
For those who already submitted, most processing is paused since SBA employees are furloughed. However, lenders can continue collecting paperwork and preparing files so they are ready for review once systems come back online. - Approved Loans with SBA Numbers:
Loans that were already assigned an SBA loan number before the shutdown can typically continue toward funding. - System Access:
According to the National Association of Government Guaranteed Lenders (NAGGL), the SBA’s Capital Access Financial System (CAFS) is open for general servicing only. The E-Tran system, used for new loan submissions and authorizations, is currently unavailable.
What This Means for Entrepreneurs
If you are in the process of applying for an SBA loan, this is not a permanent stop, it is a temporary pause. The most successful entrepreneurs use this time to stay proactive and prepared.
Here’s how to make the most of it:
- Finish your business plan. Benetrends can help finalize or refine your plan so it is ready for lender review.
- Complete documentation. Gather financials, projections, and personal statements now to prevent future delays.
- Stay connected with your lender and funding partner. Ongoing communication ensures your loan moves quickly once SBA operations resume.
- Explore non-SBA options. Benetrends offers flexible alternatives such as 401(k) Rollovers (ROBS), ROBS+, unsecured loans, and equipment financing to keep your plans on track.
Expert Insight from Benetrends
“While the shutdown has paused new SBA approvals, it has not paused entrepreneurship,” said Reg Byrd, President of Bank Financing at Benetrends. “Our team continues to help clients prepare lender-ready packages. Once the SBA reopens, those who have stayed ready will move to the front of the line.”
At Benetrends, moments like this remind us why having a trusted funding partner matters. Our experts understand how to navigate uncertainty, anticipate next steps, and position our clients for success the moment systems are back online.
Looking Ahead
When government operations resume, the SBA typically experiences a surge in loan activity as lenders work to clear the backlog. Entrepreneurs who used the downtime to prepare are often among the first to secure funding approvals.
Whether you are a small business owner, franchisee, or franchisor supporting new growth, the message remains clear:
Stay the course. Keep preparing. Benetrends will guide you every step of the way.
Need Guidance or Support?
Our funding experts are available to review your current status, assess your readiness, and help you explore all available options.
Visit www.benetrends.com to schedule a consultation and keep your funding journey moving forward.