At 12:01 a.m. on October 1st, the federal government was shut down for the first time in nearly 20 years. Congress was unable to come to agreement concerning the budget appropriations for the 2014 fiscal year. As a result SBA stopped processing loan on Monday evening at 11:30 p.m. and began its process for an orderly shutdown.
During the shutdown, the servicing centers for both 7(a) and 504 will be unable to approve loans, loan amendments, fund loans or assign loan numbers. The liquidation center will be unable to process charge offs or approve payments on guaranties. Additionally, Wells Fargo will be unable to approve loan sales on the Secondary Market and the IRS will be unable to process requests for tax return transcripts.
SBA’s E-tran system for receiving new loan applications will remain functional. Lenders may submit new loan applications through E-tran and they will be place in queue. Once the government shutdown is over and operations commence, loans in the queue will be processed in the order they are received.