In this article, we will discuss the Small Business Administration shut down, the impact to the SBA loan program, alternatives to applying for an SBA and what the government shutdown means to you. We’ll discuss the businesses affected by the partial government shutdown and how Wise Business Loans can grow their businesses with or without a Government shutdown!
Christmas has come and gone and The United States is bringing in the New Years with a bang, LITERALLY!
President Donald Trump told reporters from CNN on Tuesday, that “the partial government shutdown will remain effective until Democrats agree to build a wall around the U.S.-Mexico border to deter criminal elements. According to Trump, he’s open to calling the wall something else, such as a fence, as long as he ends up with an actual wall.”
“I can’t tell you when the government’s going to be open. I can tell you it’s not going to be open until we have a wall or fence, whatever they’d like to call it,” Trump said, referring to Democrats who staunchly opposed walling off the border.
Read the full article from CNN.
What does the government shutdown mean?
In the U.S., a Government shutdown occurs when occurs when Congress fails to pass, or the President refuses to sign, funding for federal government operations and agencies. In our case, Trump has made it quite transparent that the partial shutdown will continue in full effect until the funding for the wall is available.
Looking for more information on the partial government shutdown? Read this article written by the Foundation of Economics Education.
Who is affected by the Government shutdown?
Many individuals and businesses have already been affected with this shutdown, and will continue to suffer until the partial government shutdown is removed. According to The Balance, “400,000 non-critical employees of nine agencies were sent home without pay.” In past shutdowns, Congress has reimbursed federal employees for lost wages.Below is a breakdown provided by Kimberly Amado from the Balance, This list is a break down of the agencies affected by the Government shutdown.
- Homeland Security – 13 percent of 232,860 workers.
- Justice – 17 percent of 114,154 workers.
- Agriculture – 40 percent of 95,383 workers.
- Treasury – 83 percent of 87,267 workers.
- Interior – 78 percent of 68,469 workers.
- Transportation – 34 percent of 54,230 workers.
- Commerce – 87 percent of 47,896 workers.
- Environmental Protection Agency – 95 percent of 13,872 workers. It can use reserve funds to stay open through December 28.
- Housing and Urban Development – 95 percent of 7,497 workers.
- Small Business affected – due to the SBA shutting down
The SBA shut down? What does this government shutdown mean for small business and the application process?
The government shutdown closed the Small Business Administration (SBA) offices in Washington D.C., which could potentially affect millions of businesses and business owners. According to the shutdown, and the SBA’s Facebook page, “The SBA will not be open during the shutdown and is not accepting SBA loan applicants for new loans. However, the shutdown will not impact any businesses already receiving SBA loans.”
The sad part about this is that if you had plans to open your business before the new year and or after, right now, you are out of luck. Unfortunately, due to the partial government shutdown, business owners cannot submit a new SBA loan application to the SBA when they are in need of a small business loan. You’ll have to find another source for now to ensure your business success. This may mean dipping into your bank account, seeking out other business lenders, or possibly using a personal credit card or business credit cards. In times of need, success stories are only limited by your imagination. It may mean re-writing your business plans.
For the existing business, it’s a different story. Most likely you’re looking at the SBA 7a loans or some of the other loan programs offered by the SBA. The other SBA loan types include the SBA disaster loan, SBA Microloans, SBA expressor SBA commercial real estate loans, to name a few. We will discuss below some of the alternative term loans and business finance options that may actually be easier to qualify for an SBA. If you’re considering the SBA as a primary option remember that you must have a high personal credit score and provide personal guarantees.
The good news is if you’re currently receiving funds from one of the SBA programs, as stated above, you will continue to receive the funding. However, one issue remains; Small business currently receiving funds will still, in fact, feel the pain of the government shutdown due to lack of purchases and sales in the areas affected by the shutdown.
The good news is Wise Business Loans can provide your business with the funding you need! The qualification process is not subject to credit reviews like the SBA loans. The types of business that qualify is far more inclusive than those from SBA lenders
Looking for more information about the SBA shut down? Click here for the most Frequently asked questions from business owners.
How can Wise Business Loans help small businesses receive funding during a government shutdown?
Simple! Were magicians… just kidding. We can grow your business. Wise Business Loans is a private lender, meaning we are not like a traditional bank. We are an online lender that helps to fund business owner’s dreams by issuing small business loans that compete with business loans from banks. At Wise Business Loans, our mission and objective is to facilitate a significant increase in the rate of business success.
At Wise Business Loans, we offer four different funding options to businesses in the United States. We provide our clients with competitive pricing, great rates, flexible loan repayment options, and, my favorite part, minimal paperwork. The loan size can range from $10,000 to $2M. For loan amounts under $100,000 there are no financial statements or tax returns needed. It’s a simple one-page loan application based on the cash flow of your business and not your personal credit score. While SBA loan rates are competitive (since they are bank loans) the loan rates from Wise Business Loans might surprise you.
Wise Business Loans offers:
Get Pre-approved for a Business Loan NOW:
At Wise Business Loans, we try to make funding as easy as 1,2,3. We understand that no one likes to be given the runaround. Unlike your average lender or bank, we do not believe in slowing down the process by requesting our clients to complete redundant paperwork nor are we asking for collateral. At Wise Business Loans, are loans are subject to a more efficient underwriting process. We have very few requirements in order to be approved for funding. The first step as a business owner is knowing which loan you would like to sign up for. Now that you have that all figured out, let’s discuss the requirements for each loan.
Fast Business Loan requirements:
- 6 months in business
- Annual revenue of at least $150K
- A personal credit score of 500 or better
Get approved today and funded tomorrow. These loans are quick and easy.
Large Business Loans
The requirements for large business loans varies from business to business. If you need a financing option that gets you between $50,000 to $2M, than Wise Business Loans can be a great business resource. We have easy credit approval and can offer a competitive low interest rate . With that in mind, the requirement process is simple.
Unsecured Business Loans:
The Unsecured Business Loan requirements are much easier than a secured business loan. There are no traditional personal guarantees.
- You must have a minimum $150,000 in annual revenues and at least 6 months in business.
- We analyze the health of your business, the cash flow and not just your credit score.
- There is No Prepayment Penalty
- The application does not report to your personal credit report
- Funding as quick as 24 to 48 hours and the amount of funding ranges from $10,000 up to $$500,000. The best part is that Wise Business Loans doesn’t require collateral or assets.
Merchant Cash Advance:
Also known as MCA it is perhaps the easiest of the loan provided. This “loan type” is a lump sum of cash in exchange for a percentage of your future credit & debit card daily sales. In a sense, MCA guarantees to fund your business for a slice of your future sales. (Hence your daily receipts)
Find out if you qualify, GET PRE APPROVED NOW
What are you waiting for? You have nothing to lose! Don’t miss out on this great opportunity, as a wise man once said Time is money! WISE Business Loans will continue to help business and entrepreneurs by funding dreams with or without a government shutdown!