Following an impasse in Congress regarding federal funding, the government entered a shutdown on October 1, 2025, resulting in the suspension of most SBA operations. As your 504-lending partner, we are monitoring the government shutdown and want to address any questions you have about our current operations. Below is a brief overview of relevant information for borrowers and third-party lenders.
How will the shutdown impact WBD?
New 504 Loan Approvals:
While the SBA is not accepting any new 504 loan applications during the shutdown, WBD will continue processing new and existing SBA 504 loan applications. Loans will be prepared for submission to the SBA so that applications can be submitted immediately once the shutdown ends. If you have a time sensitive closing deadline that will be impacted, please contact your WBD Loan Officer to discuss options you may have to still close and maintain SBA 504 eligibility.
504 Closing & Funding Process:
Thankfully, the 504 debenture funding cycles for October and November will proceed as usual for loans not requiring amendments. For those that require amendments, WBD will work to have those amendments prepared for submission once the shutdown ends.
How does the shutdown impact existing SBA 504 loans?
- Payments must continue. Borrowers with existing 504 loans are required to keep making payments as scheduled to their lender, regardless of the shutdown.
- Limited servicing actions. Although core loan servicing functions remain operational, borrowers will be unable to request loan increases, modifications, or reinstatements for canceled loans during the shutdown. Nevertheless, WBD is available to assist you in preparing for the resumption of SBA government services by reviewing these requests and readying them for submission once the government reopens.
What can be expected from the SBA during the shutdown?
Due to the shutdown and the absence of a budget or Continuing Resolution (CR), the SBA will function according to the procedures described below. For further details, please go to SBA.gov.
- The SBA may maintain a limited staff and continue only essential operations necessary to protect assets, including those related to loan collateral.
- Federal funding to allow approval of new SBA loans will not be granted until a CR or government budget is passed.
- Amendments are not being processed for approved but unfunded, 504 loans.
- The 504 debenture funding cycles for October and November will proceed as usual for loans not requiring amendments.
Although the federal government is currently experiencing a shutdown, WBD remains operational. We will continue processing loans and will promptly resume loan activities with the SBA as soon as we are allowed. Please note: Once the shutdown ends and SBA staff resume their duties, small business borrowers can expect delays in the processing of funding approvals due to the anticipated backlog.
WBD is here to help with any questions you have about the impact of the shutdown on your deals or 504 lending overall. If you need additional information, please contact us directly or refer to the loan guidelines provided on SBA.gov.
