Do you expect SBA program to be impacted by government recent changes?

searcher profile

March 25, 2025

by a searcher in Boston, MA, USA

Recently, the staff of SBA department was significantly cut, and got a lot more scope with the addition of student loans. How do you think that could change, if at all, the availability of SBA loans?

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commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
We are not anticipating any impacts to the ability to get SBA financing. First off, the SBA loan programs are very popular on both sides of the aisle and you have a President that is pro-business. Secondly, it appears most of the cuts so far have been in other departments within the SBA and not so much on the SBA 7A and SBA 504 lending side. Third, the majority of SBA 7A loans are done through what are referred to as PLP lenders (Preferred Lender Providers). These lenders have the authority to approve loans on behalf of the SBA and they just submit to the SBA for an authorization once approved, a process that is largely automated. So it should not impact the ability to get approvals. The only place that could potentially see some impact is loans that are processed directly by the SBA. Certain loans, like the refinance of existing SBA debt, need to be processed by the SBA 7A directly and cannot be processed via PLP status. The SBA has done a great job improving that process over the years, but if there are employee impacts in that group that could slow down the processing of loans submitted directly to the SBA. But that is a very small percentage of SBA loans and is unlikely to impact anything you are doing. If you have additional questions on the SBA process you can reach me here or directly at redacted
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