How SBA Loan Preparation During a Government Shutdown Is Your Biggest Advantage

When the federal government shuts down, many agencies, including the U.S. Small Business Administration (SBA), pause critical operations, temporarily halting the review and approval of loan applications. 

For small businesses, that pause can delay access to essential capital and stall growth plans. But when funding is restored, the SBA will resume processing applications for its core programs, such as SBA 7(a) and 504 loans. Historically, a significant backlog of applications follows immediately after the government reopening, making application speed and preparedness essential for securing funding.

Act Fast: Finalize Your Application

To ensure your business is at the front of the SBA’s queue:

• Ensure Your Package is 100% SBA-Ready: 
  • Grasshopper is actively underwriting and preparing applications internally. By working with our team now, you ensure your loan package is complete, bank-approved and ready for immediate submission to E-TRAN, the SBA’s electronic system, the second it comes back online.
• Leverage the PLP Advantage for Faster Funding: 
  • As a member of the SBA’s Preferred Lender Program (PLP), Grasshopper has delegated authority to make credit decisions in-house. This means a complete, internally-approved file can bypass the SBA’s lengthy backlog, helping you receive a final loan number and funding much faster than businesses working with non-PLP lenders.

Smart businesses plan ahead and stay ready to act fast. By finalizing your SBA application, you’re ensuring your business can move quickly as soon as the government reopens, turning downtime into opportunity and positioning yourself ahead of the competition.

Stay Ready: Use This Time Proactively

If your SBA loan application was in mid-process when the shutdown began, use this critical time wisely to ensure you’re ready to move once the government reopens. While the SBA systems are paused, Grasshopper continues to work with all applicants to ensure loan packages are 100% complete, bank-approved and ready for electronic submission the second E-TRAN comes back online.

This is the ideal opportunity to:

• Confirm all supporting documents are current and complete. Make sure your financial statements, tax returns, and business documentation are up to date and accurately reflect your current operations.
• Respond promptly to any outstanding requests. If additional information or clarification has been requested, providing it now helps finalize your file for immediate submission once systems reopen.
• Review your business financials and projections. Take a moment to update cash flow forecasts or growth plans. These small refinements can help strengthen your overall loan profile.
• Stay in close contact with your SBA lending team. Regular communication ensures any updates or requirements can be addressed quickly, positioning your application for faster approval once SBA processing resumes.

By taking these steps now, you ensure your SBA loan application stays at the front of the queue and is ready for rapid approval once the government reopens. Staying proactive today means faster access to the funding your small business needs tomorrow.

Future-Proof: Expect The Unexpected

Government funding issues may be recurring, but your growth doesn’t have to wait. Even when SBA operations are on hold, you can take proactive steps to keep your small business moving forward and minimize the impact of another government shutdown in the future.

Here are a few key actions and considerations to keep in mind:

• You can always start the application. Continue to work with PLP lenders like Grasshopper to assemble, underwrite, and internally approve your loan package. While we can’t get the final SBA loan number during a shutdown, we can get everything else ready to ensure a quick turnaround the moment the government re-opens.
• Choose a PLP Lender. As a Preferred Lender, our funding timelines are often quicker than those of non-PLP lenders. Although PLP lenders can’t obtain final approval from the SBA during a shutdown, we are positioned to be the fastest to process applications once the government reopens, minimizing the funding delay for your small business.

At Grasshopper, we know that uncertainty is part of the journey for every small business, but it’s how you prepare that makes the difference. By taking action now, you’re not just getting ready for the SBA to reopen; you’re setting your business up to move faster, grow stronger, and stay ahead no matter what comes next. Together, we can turn this waiting period into an opportunity to build momentum for your next stage of growth.

Savvy business owners aren’t waiting. They’re using this time to apply and prepare their loan packages for submission, securing their spot at the top of the queue. Don’t get left behind! Act now.

Grasshopper Bank is a delegated SBA Lender. Please note that the eligibility requirements and loan terms listed on this page are specific to Grasshopper Bank’s internal lending criteria. These requirements may differ from the general guidelines and program requirements set forth by the U.S. Small Business Administration (SBA) for the 7(a) Loan Program.