It’s now over a month since the government shutdown SBA services along with numerous other agencies. The deadlock between Congress and President Trump over funding for the Mexican border wall looks set to continue indefinitely. Although much of the focus has been on the political aspects, many small business owners are feeling the pressure. The government’s SBA shutdown means that thousands of companies are no longer able to access the capital they need.
What Does This Mean for Business Owners?
The SBA has said that those who haven’t yet submitted a loan application won’t be able to start the process until the shutdown is over. This means that a huge number of small companies are having to look at alternative funding sources to meet their needs on schedule. However, there is good news for those businesses that submitted a loan application prior to agency closures. The SBA has confirmed that these applicants should receive funding on time, despite the turmoil.
In addition to the government shutdown SBA issues, there are additional implications for small businesses. It’s thought that the hiring process for many companies will be slowed down since they’ll be unable to verify work permits. Without the government’s E-verify system, small businesses will struggle to determine whether potential employees are eligible to work in the US. In states where this verification is mandatory, companies are having to delay new hires indefinitely. This is likely to have knock-on effects for unemployment and retail spending down the road.
There are also implications for those who need help from the IRS or have tax-related questions. Support for small business owners won’t be available until the shutdown ends as only limited services are in operation (mainly focused on criminal activities). The IRS won’t be answering queries, conducting audits, issuing refunds, or processing amended returns. This may leave many small business owners in limbo as to how they approach their tax responsibilities.
It could also result in significant cash flow issues for businesses that were counting on a big tax refund to be processed this month. Unfortunately, the companies that are relying on these refunds are usually the ones that file their returns the earliest. If you were hoping to use those funds to pay outstanding bills, purchase new season stock, or reinvest into your business, then you may be waiting much longer than originally planned.
SBA Loan Alternatives
If you’re looking for an alternative source of funding, then Strategic Capital may be able to help. We have a marketplace of SBA preferred banks which enables us to match you with the lender that’s most likely to approve your business loan. This simplifies and streamlines what was once considered a complex and cumbersome process. All you need is to have been operating for a minimum of two years, have profitable business tax returns, and a personal credit score of 650. If you meet these criteria, then there’s a strong chance that we can help you secure an SBA loan within 2-4 weeks.
Government Shutdown SBA – Summary
Since the government shutdown SBA services last month, small businesses have had to start looking elsewhere for funding. Those with active applications should receive their money on time but if you hadn’t already applied before December 22nd, then you won’t be processed. Unfortunately, this may cause cash flow issues and damage growth for many smaller companies that were counting on the SBA. Coupled with delays in tax refunds and problems with hiring new staff, this could prove to be a disastrous combination for some. However, there are alternative funding sources available from online lenders that can give you access to the cash within a month. So, if you’re feeling the pressure to get funds quickly, then there are cost-effective options to meet your business needs.
How We Can Help
Strategic Capital provides business finance to a wide range of organizations across the USA. Whether it’s to pay for your everyday costs, emergency repairs to equipment, or investing in expansion, we offer small business financing solutions without the hassle of traditional banks. Best of all, you’ll benefit from competitive terms and a simple application process, so you’ll soon have more money to reinvest into your business.Transparency, innovation, and expertise are the driving factors behind everything we do. With a talented team of advisors, a plethora of funding partners, and the best technology available – we go above and beyond to help our clients receive their capital rapidly with the industry’s most competitive repayment options and interest rates. We want to break speed records, not bank accounts. Upon submitting your application, it’s reviewed by a dedicated Capital Advisor. We generate the best rates and terms at lightning speed through our funding matrix and robust lender network. Yep… it’s that simple. Learn more about our business finance and lending services here.
– Bradley Keys