2 BIG Ways the Government Shutdown impacts Business Loans

Share on facebook
Share on twitter
Share on linkedin


The impacts that this government shutdown is having on small business lending

#1 The SBA is currently closed

Here is what is happending

  1. Applications are coming in
  2. They’re going to the lender
  3. They’re being processed
  4. They’re being pre-approved
  5. Approved
  6. Instead of being approved, the applications are going into a queue to officially fund when the SBA re-opens

Unable to Satisfy Lending Requirements

The 4506-T

A 4506-t is an authorization for your lender to pull your last 2 years tax returns directly from the IRS and since that sector of the IRS is closed right now the lender is not able to pull your last couple years worth of tax returns which in turn is causing delays.

What we recommend

If you are attempting to get business financing

If you’re looking for a small business loan or line of credit during The Shutdown, make sure it’s not SBA-backed, and make sure the lender is not going to require a 4506-t. Many times the lender is not going to require a 4506-t upfront, however when you are several days into the loan process the lender may require one without notice for additional verification of your business’s finances. If you ask your lender and they can confirm that they do indeed require a 4506-t, you may want to avoid that particular lender.

How the Government Shutdown Effects your Business Loan



Did you like this article?



We provide more case studies and finance tips weekly, but you won’t know when we do unless you complete one of the steps below!

$500,000 IN FUNDING FOR YOUR BUSINESS

IN 30 days

This free training shows you all the secrets banks don't want you to know.

Complete the form below to learn the secrets

To inquire about building additional business credit, click the link below

Don’t want to wait? To submit a secure prequal and get a free consultation, click the link below

Share this post with your friends

Share on facebook
Share on google
Share on twitter
Share on linkedin

Leave a Comment