A Guide to Business Funding During the 2025 Government Shutdown

The 2025 government shutdown has left many small business owners in a bind — especially those counting on SBA loans or federal support. If you’re wondering where to turn for funding while key government functions are paused, you’re not alone.

This guide breaks down your options and what to expect in the weeks ahead.

Can I get an SBA loan during the government shutdown?

SBA 7(a) and 504 loans are not being processed or approved during the shutdown. Even if you’ve already applied, expect delays. Until Congress passes a funding bill and the SBA resumes operations, SBA-backed funding is effectively on pause.

When it comes to SBA microloans, those are issued by intermediary lenders that are funded by the SBA in advance — so it may be possible to receive a microloan during a government shutdown. Additionally, a disaster loan may be available if your business is impacted by a declared disaster. However, the agency will be operating with limited staff, which will cause delays.

Where can I get business funding while the SBA is shut down?

If you need funding now, you’ll likely need to look beyond the SBA. Consider these alternatives:

Online lenders. Many online business lenders, including OnDeck, offer fast decisions and funding within days (or even same-day). Business owners can find a variety of small business loans — such as term loans and lines of credit — to meet their needs.,

Banks and credit unions. Some banks and credit unions may still offer funding during the shutdown, but approvals typically take longer and can be harder to secure — especially without SBA support.

Invoice factoring companies. Invoice factoring allows you to sell unpaid invoices to a third-party company (a “factor”) in exchange for fast funds. The factoring company collects payment directly from your customers, then sends you the remaining balance minus a fee.

Merchant cash advance companies. A merchant cash advance (MCA) gives your business a lump sum of funding in exchange for a portion of future debit and credit card sales.

How long will the government shutdown last?

It’s uncertain. Some shutdowns have ended in a few days. Others — like the 2018 – 2019 shutdown — stretched for over a month. The duration depends on negotiations in Congress. If you’re a small business owner, it’s smart to plan for several weeks of limited federal services.

What government services are impacted by the shutdown?

Not all federal services stop during a shutdown. Here’s how it typically breaks down:

SBA: Stops processing new loan applications and most support services.

IRS: Slows down tax-related operations, including processing refunds and some business filings.

Federal contracts and grants: May be paused or delayed, depending on the agency.

Social Security and Medicare: Continue as usual, but support services may be limited.

USPS: Mail delivery continues — it’s self-funded and unaffected.

For small businesses that rely on SBA support or federal contracts, the impact can be significant.

How long did the last government shutdown last?

The most recent major shutdown lasted 35 days, from December 22, 2018 until January 25, 2019. It was the longest in U.S. history. During that time, the SBA suspended new loan approvals, causing a backlog that took weeks to resolve. Many small businesses instead used private lenders to meet their funding needs.