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The shutdown has ended, yet some small businesses still struggle to move on

February 02, 2019 / Lorie Konish
SHARESHARESHARE

The partial government shutdown has come to an end. Yet for small-business owners who are waiting on loans, the clock is still ticking.The government closure shuttered some agencies, including the Small Business Administration, for 35 days.Now that the SBA has finally reopened, it faces a backlog of loans to process. The Consumer Bankers Association pegged the tally of outstanding loans at about 300 for each day of the shutdown, or about $2 billion in lending, according to a letter it sent to President Donald Trump and Congressional leaders Jan. 22. The partial shutdown began on Dec. 22. The SBA works with lenders to process and guarantee funding for small businesses. The agency does not loan money directly. It does, however, set guidelines for loans with the aim of reducing risk for lenders and making capital more available to small businesses. The SBA did not respond to a request for comment.