SBA Loan Processing Among Government Shutdown Casualties

Processing of Small Business Administration (SBA) loans has halted during the partial government shutdown now headed into its third week. The lack of loan approvals is creating problems for consumers and lenders that use the agency's programs, including credit unions.

The shutdown is creating a severe backlog of applications as the SBA is unable to process and approve them. Once the government is reopened, it is expected to take the agency two to three weeks to process requests from its normal one-week turnaround.

Many credit unions use SBA programs, including the 7(a) loan program, to provide loans to small businesses and entrepreneurs in their communities.