SBA Loan Delays: Is the Timeline Legit?

December 30, 2025

by an intermediary from University of Utah - David Eccles School of Business in Mountain View, CA, USA

I’m in the middle of selling my business and dealing with very particular buyers. Can anyone confirm whether SBA approvals are actually running 1–2 weeks behind and funding another 3–4 weeks due to the shutdown backlog? I just want to verify that this timeline is legitimate. Thanks

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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

Great question. Yes and no. Technically Banks have been able to approve deals during the shutdown and we are not really seeing any more than a day delay in getting SBA authorizations pulled for SBA 7A loans. So getting approvals done for SBA 7A loans is not really delayed directly. The SBA 504 approval process is very backed up through and that is delayed a week or two for sure as those loans need to go directly to the SBA for final approval. However, many Banks were back-logged on deals that needed to close by year-end due to the shutdown and all hands have been on deck to get those deals closed. Credit usually needs to review final changes and updated financials prior to closing, so that does impact the speed approval teams can work at for new deals. On top of that, due to where the holidays have fallen in the week this year, since the 24th most of the lenders have had their office be pretty barren except for those finalizing deals by year-end. So there has been a slowdown in bank work speed. I would expect by mid January most of the slow downs to be gone, if not sooner. I hope this helps to answer your questions. You can also reach me directly here or at redacted

Reply by an intermediary
from University of Iowa in Kansas City, MO, USA

It depends on the processing method of the lender. For example, if they have their PLP designation, "approval" should not be delayed. If they are not a PLP or submitting to General Processing for whatever reason, then yes, it can match that timeline of 1-2 weeks for an SBA loan number. If the project includes a special program like International Trade, Export LOC, or WCP LIne of Credit, then that could be part of the reason as well. The shutdown should not have any impact on funding, as that is in the lender's hands post-issuance of the SBA loan number. Most wont start the closing process until they get the deal approved internally and have the guaranty in place.

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