The government shutdown began at 11:30pm Eastern time on 09/30/2013. At that point, the SBA stopped processing SBA 504 loans for approval and funding.
1. Loans submitted after this time, and into FY 2014, will be placed in a queue.
2. Capital CDC will continue to process and underwrite loans up to the point of submission.
3. Capital CDC will continue to process and prepare loans in queue for closing.
4. Based on prior experience with the SBA process, when FY 2014 funds are available to the SBA, funds will flow down to loans in the queue that have been conditionally approved and a loan number will be issued.
• The shutdown means that the SBA will be unable to obligate funds to FY 2014 loan applications until the situation is resolved.
• The duration of the shutdown is speculation at this time but we do know it is temporary.
The SBA’s Government Contingency Plan is available as published by the Office of Capital Access and can be reviewed at the following link: http://www.sba.gov/content/sba-plan-operating-event-lapse-appropriations .
Capital CDC will monitor the situation closely and we will continue to post updates on our website at www.www.capitalcdc.com/blog.