The Small Business Administration’s (SBA) main portal is currently down due to a lapse in federal funding, prompting the agency to activate its Lapse Plan. As of this week, most SBA programs, loan approvals, and customer support services remain unavailable, directly affecting small businesses nationwide that rely on federal loans and certifications to operate.
The federal shutdown has suspended all new applications for 7(a) and 504 loans—two of the most common small business loan types offered by the Small Business Administration. According to the agency’s official system status page, lenders cannot submit, process, or receive approvals for new loans until funding is restored.
Each business day the government remains closed, roughly 320 small businesses are unable to access an estimated $170 million in SBA-backed financing. The agency reported that more than $2.5 billion in SBA loans have already been delayed since the shutdown began, leaving thousands of borrowers in limbo.
Entrepreneurs using the MySBA portal are unable to access their accounts or submit documents. The shutdown has also paused certifications under the 8(a) Business Development, Women-Owned Small Business (WOSB), and Service-Disabled Veteran-Owned Small Business (SDVOSB) programs. An SBA spokesperson said that “most core services, including new loan processing and federal contracting certifications, are paused until appropriations resume.”
Despite the system outage, some SBA programs remain functional. The agency continues to issue disaster loans and Economic Injury Disaster Loans (EIDLs), although processing times are longer due to reduced staffing. Homeowners and businesses that have suffered physical or economic damage may still qualify for these programs and can submit applications through the SBA's disaster assistance website.
Borrowers with existing SBA loans can still make payments and check account information through the MySBA Loan Portal. Programs such as the HUBZone initiative, SBA Microloans, and Small Business Innovation Research (SBIR) grants remain active, providing partial support to businesses seeking access to funding during the shutdown.
The SBA has advised borrowers and lenders to prepare for extended approval timelines once federal funding is restored. Businesses that already received SBA loan numbers before the shutdown may still be able to move forward with disbursements through their lenders.
Those seeking to qualify for SBA assistance should review the eligibility requirements and gather the necessary supporting documents in advance. Applicants unable to access the SBA website can contact lenders directly for information on available loan types, eligibility criteria, and how to reapply when the system reopens.
Existing borrowers are reminded to continue making scheduled payments to avoid delinquency, even if the SBA portal remains down. Payment options are available through third-party processors or directly with lenders managing the loans.
While most SBA systems are frozen, the Disaster Assistance program remains active for both homeowners and businesses. Applicants can request assistance for expenses related to physical damage, machinery replacement, or lost income resulting from natural disasters.
An SBA official noted that “our disaster loan operations are continuing with minimal disruption, though applicants should expect longer processing times.” Borrowers who have already submitted disaster loan applications can track their progress online and send additional documentation as requested.
The agency continues to encourage applicants to learn about available programs, check the status of their disaster loans, and contact resource partners for guidance until full operations resume.
The SBA expects to restore all operations immediately once a funding bill is passed by Congress. At that time, loan and certification processing will resume, but a backlog is likely as pending applications are reviewed.
Businesses are advised to stay updated through the SBA system status page and consult with local lenders or resource partners such as SBDCs, SCORE, and Women’s Business Centers. These organizations continue to offer limited support for entrepreneurs preparing to apply once the portal is active again.
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