Government Shutdown Effects on Commercial Real Estate Buyers Seeking SBA Loans – 5 Key Impacts

A government shutdown can drastically impact buyers looking for SBA-backed loans to purchase commercial real estate. Listed below are 5 key impacts:

1. The SBA may halt or delay the approval of new loans, which can stall real estate transactions.
2. Banks and credit unions may be unable to get SBA approvals or guarantees, slowing down loan disbursements.
3. New SBA-backed loans may not be approved during a shutdown, potentially thwarting planned purchases.
4. A shutdown can decrease investor confidence, leading to less activity in the commercial real estate market, and possibly making deals harder to close.
5. If federal agencies are involved in inspections or appraisals, those services might be delayed.

Although a government shutdown can negatively affect a purchase, working with an experienced SBA lender can offer strategies to navigate the delays.