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Everything stops. The SBA office your bank has been working with goes dark. The person who was reviewing your application? Furloughed. The system that was processing your file? Frozen until further notice.

It feels like someone just yanked the parking brake while you were going 60 down the highway.

Dave Oetken, Louisville Small Business Development Center

The Cold Reality of a Shutdown

When Washington hits pause, the Small Business Administration grinds to a halt right along with it. It鈥檚 not personal 鈥� it鈥檚 just how federal funding works. Unless your loan falls under an 鈥渆ssential鈥� program (like disaster recovery), it鈥檚 stuck in limbo until Congress figures things out.

That means no new loans are approved, and no amount of refreshing your email will make that 鈥淪BA decision鈥� notification appear.

Even worse, once the government does reopen, the backlog will be massive. Lenders and SBA reviewers will be digging through a mountain of stalled applications.

So yeah 鈥� it鈥檚 frustrating. But here鈥檚 the good news: this doesn鈥檛 have to derail your business. You just need to pivot.

Don鈥檛 Panic! Talk to Your Lender

Your first call shouldn鈥檛 be to your congressperson 鈥� it should be to your lender. Whether it鈥檚 a bank, credit union, or SBA-approved lender, they understand the situation. They鈥檙e dealing with this too, and you might be surprised by how much flexibility they have.

Some banks offer short-term 鈥渂ridge鈥� loans 鈥� essentially a temporary source of funding you can roll into your SBA loan later. Others might extend or expand an existing line of credit just to help you weather the delay.

Even if they can鈥檛 move funds immediately, they can help you prepare. Ask them what documentation or updates you can handle now so your file鈥檚 first in line when the SBA reopens. That prep work can shave weeks off your waiting time later.

Exploring Other Ways to Keep the Lights On

Waiting out a shutdown is one thing. Keeping your business running during it is another. If your expansion or daily operations depend on that loan, it鈥檚 time to get creative with financing.

A line of credit might be your best friend right now. It鈥檚 flexible, relatively quick to set up, and gives you access to cash when you need it 鈥� not before. Sure, the interest rates can be higher than what you鈥檇 get from the SBA, but it鈥檚 often the difference between standing still and moving forward.

If your expansion involves equipment, look into asset-based financing. It鈥檚 surprisingly common 鈥� lenders use the equipment itself as collateral. That way, you can buy what you need now and refinance later under the SBA鈥檚 better terms once things normalize.

And then there鈥檚 the fast-but-expensive world of online lenders. Companies like BlueVine, OnDeck, and Fundbox can approve loans in a matter of days. They鈥檙e not cheap, and the repayment terms can be aggressive, but they do one thing really well: they get you money now.

For some businesses, especially those with steady revenue but tight cash flow, invoice financing can help. You sell your unpaid invoices at a small discount and get the cash right away. It鈥檚 not glamorous, but it can buy you breathing room.

One word of warning, though: if someone offers you a 鈥渕erchant cash advance,鈥� proceed with caution. Those can feel like quick solutions 鈥� a lump of cash in exchange for a portion of your future sales 鈥� but the repayment costs are brutal. It鈥檚 a short-term fix that can easily become a long-term headache.

Don鈥檛 Forget the Local Options

Here鈥檚 something most people overlook: the federal government isn鈥檛 the only game in town.

Your Louisville Small Business Development Center (SBDC) is still open 鈥� we don鈥檛 shut down when D.C. does. We can help you connect with regional funding programs, state-backed grants, or community development funds that are still running.

Many cities and states have their own small business loan funds, especially for rural businesses, startups, and minority-owned companies. These programs don鈥檛 always have the marketing muscle of the SBA, but they often move faster and have more flexible criteria.

If you鈥檙e in Kentucky, for example, there are local CDFIs and community banks that specialize in supporting small business growth. These aren鈥檛 鈥淧lan B鈥� options 鈥� they鈥檙e legitimate alternatives that could get you the funding you need without waiting on Capitol Hill.

Use This Time to Get Your House in Order

If the SBA can鈥檛 move your loan right now, that doesn鈥檛 mean you鈥檙e powerless. Use this downtime to make your application bulletproof.

Start by cleaning up your financials. Make sure your profit and loss statements, balance sheet, and cash flow projections actually tell the story you want lenders to see.

Next, check your credit 鈥� both personal and business. If anything is dragging down your score, fix it now. Pay down small debts, resolve collections, and dispute errors. Every point helps.

If you鈥檙e using collateral for the loan, double-check that you鈥檝e got all the documentation and valuations lined up. Lenders love clarity.

And don鈥檛 underestimate the power of your story. The 鈥渨hy鈥� behind your loan matters just as much as the numbers. Why this expansion? Why now? What will it do for your customers, your team, your community? The clearer your story, the stronger your application.

When the SBA reopens, you鈥檒l want that application to be so tight and so ready that your lender can send it through immediately 鈥� no waiting, no fumbling for documents, no second drafts.

Thinking Outside the Loan

If you鈥檙e open to it, this might also be the moment to explore non-loan funding.

Equity financing 鈥� bringing on a partner or investor 鈥� isn鈥檛 for everyone, but it can be a smart move if the right person comes along. Maybe it鈥檚 an industry contact, a local investor who believes in your idea, or even a crowdfunding platform that lets your community invest directly in your growth.

The trade-off, of course, is ownership. You give up a piece of your business. But you also gain a partner, a sounding board, and potentially someone who brings skills or connections you don鈥檛 have yet.

Grants are another path, though they take patience and persistence. They鈥檙e free money, but they come with strings 鈥� usually in the form of eligibility requirements, long applications, and competition. Still, it鈥檚 worth looking into state-level or corporate grants. Even small awards can help keep your plans moving.聽聽I put together a list of grants I could find.聽You can

Tighten the Reins

If your funding is stalled, the next few months are about cash discipline. Think like a survivalist: conserve what you have, stretch every dollar, and avoid unnecessary risk.

Put major purchases on hold if you can. Negotiate with suppliers 鈥� many would rather extend payment terms than lose a good customer. Keep your payroll stable, even if it means slowing expansion.

Remember, business isn鈥檛 always about growth. Sometimes it鈥檚 about endurance. Staying alive through the storm is what gives you the chance to thrive afterward.

What Happens When the Lights Come Back On

Eventually, the government will reopen.聽And when that happens, the SBA will get back to work 鈥� slowly at first, then all at once.

The first wave will be chaos: thousands of business owners rushing to pick up where they left off. But if you鈥檝e done your prep work now, you鈥檒l be ahead of that wave. Your lender will already have your documentation, your credit will look sharper, and your story will be stronger.

That鈥檚 when being ready pays off. The SBA prioritizes complete, organized, ready-to-go applications. The more work you do now, the faster your loan will move once the system wakes up again.

The Real Lesson in All This

Here鈥檚 the hard truth: business owners live in a world full of uncertainty 鈥� whether it鈥檚 a shutdown, a supply chain issue, a pandemic, or something else entirely. You can鈥檛 control Washington. You can鈥檛 control the economy. But you can control how prepared you are.

Use this time to strengthen your business 鈥� the systems, the story, the strategy. Build relationships with lenders and local partners. Stay visible in your community. Keep your finances clean and your mindset steady.

When the SBA reopens, most people will scramble. You鈥檒l already be moving.

And maybe that鈥檚 the bigger takeaway here: resilience isn鈥檛 about avoiding obstacles 鈥� it鈥檚 about adapting faster than the people who get stuck behind them.

So yes, the government might be shut down. But your business? It鈥檚 still open.

Are you looking for financing resources? The Small Business Development Center team can help! If you鈥檇 like to chat via Zoom to start your funding journey, you can find some time to with me or one of our other business coaches! Or, reach out to me at [email protected].聽聽I鈥檇 love to hear from you!