WASHINGTON, D.C. — This week, U.S. Senator Jacky Rosen (D-NV) joined her Democratic colleagues on the U.S. Senate Committee on Small Business and Entrepreneurship in sending a letter to Administrator Linda McMahon, of the U.S. Small Business Administration (SBA). In the letter, Members expressed serious concerns over the effects the President’s shutdown is having on American small businesses who are currently unable to access capital through SBA’s 7(a) and 504 Loan Guarantee Programs as the government shutdown enters its 33rd day.
“Because capital is the life blood of our nation’s small businesses, it is critical that the SBA have a plan in place to address the growing backlog of loan applications so that it can be quickly implemented once the government reopens,” wrote Members. “As such, we ask that you provide us with the steps you are taking to ensure that the SBA can quickly and equitably work through the growing backlog of applications. Please let us know if you require additional resources or authorities to meet the needs of these small businesses who are being adversely affected by the government shutdown.”
Read text of the letter below:
The Honorable Linda McMahon
Administrator
U.S. Small Business Administration
409 3rd Street, SW
Washington, DC 20416
Dear Administrator McMahon:
As members of the Senate Committee on Small Business and Entrepreneurship, we are concerned that the current government shutdown is preventing small businesses from accessing much needed capital through the Small Business Administration’s 7(a) and 504 Loan Guaranty Programs and that the growing backlog of applications will create long delays for loan approvals once the agency reopens.
As you know, the SBA works with approved lenders and community development organizations to guarantee loans, mitigating their risks and offering access to capital to those unable to obtain conventional loans. In FY 2018, the SBA approved more than 66,000 loans in the 7(a) and 504 loan programs, providing more than $30 billion to small businesses and supporting nearly 600,000 jobs.
With the SBA’s loan processing centers in California and Kentucky currently unable to process loans, small businesses are losing out on an estimated $117 million in capital every day that the government shutdown continues.
Because capital is the life blood of our nation’s small businesses, it is critical that the SBA have a plan in place to address the growing backlog of loan applications so that it can be quickly implemented once the government reopens. As such, we ask that you provide us with the steps you are taking to ensure that the SBA can quickly and equitably work through the growing backlog of applications. Please let us know if you require additional resources or authorities to meet the needs of these small businesses who are being adversely affected by the government shutdown.
Thank you for your attention to this request. We looking forward to your response
Sincerely,
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