SBA Chief Warns Shutdown Would Halt Small-Business Loans
Kelly Loeffler, administrator of the U.S. Small Business Administration, told CBS News in an interview that a federal funding lapse set to begin at midnight would force the SBA to suspend loan processing and effectively cut off access to small-business loans. Loeffler framed the warning as an immediate operational consequence of a shutdown that would affect borrowers seeking capital across the United States and urged Congress to act to prevent the interruption.
Government/Regulatory
Economy
🔍 Key Facts
- Kelly Loeffler is the Administrator of the U.S. Small Business Administration and made the remarks in a CBS News interview.
- She said a government shutdown set to begin at midnight (Sept. 30, 2025) would halt SBA loan processing and cut off small-business lending access.
- The warning implies nationwide operational impacts for SBA borrowers and lenders if Congress fails to fund the government.
📍 Contextual Background
- Republicans and Democrats were engaged in negotiations over government funding ahead of an upcoming funding deadline described as occurring on a Tuesday.
- Social Security benefits are funded through mandatory spending, meaning the program's funding is provided without an annual expiration and does not require yearly appropriations to continue benefit payments.
- The Social Security Administration's contingency plans provide that in the event of a lapse in appropriations the agency will follow those plans and beneficiaries would continue receiving Social Security, Social Security Disability Insurance (SSDI), and Supplemental Security Income (SSI) payments.
- During a U.S. federal government shutdown, active-duty military personnel and deployed National Guard members must continue to perform their assigned duties but their pay is delayed until the shutdown ends.
- Civilian personnel whose work the Department of Defense designates as 'excepted' continue to work during a government shutdown, while other Department of Defense civilian employees are furloughed.
- The Government Employee Fair Treatment Act of 2019 provides that government employees automatically receive back pay after a government shutdown.
- Congress enacted the Pay Our Military Act in 2013 to ensure military pay and allowances continued during a government shutdown.