When the federal government shuts down it can create uncertainty, especially for small businesses who rely on government-guaranteed loans from the FSA, SBA, or USDA. At Stone Bank, we understand how frustrating this lack of certainty can be.
Whether you’re currently repaying a loan or waiting for approval, we’ve got answers to your most pressing questions.
What is a government shutdown?
A government shutdown happens when Congress doesn’t pass the necessary budget legislation to fund federal agencies. When this occurs, many government operations are paused until funding is restored. Essential services like air traffic control and military operations continue, but others, including those processing certain small business loans, may be suspended until the shutdown ends.
How long do government shutdowns usually last?
It varies. Some last just a few days; others can stretch for weeks. The duration depends on how quickly Congress can reach a budget agreement.
I already have a government-guaranteed loan (FSA, SBA, USDA). Will a shutdown affect my current payments?
No, your loan payments will continue as usual. Our team is here to support you, so if you’re experiencing financial hardship, please reach out—we may be able to help.
Can I still submit an application for a government-guaranteed loan during a shutdown? If so, what happens to my application?
Yes – Stone Bank continues to accept applications for government-guaranteed loans during government shutdowns. We will continue to underwrite applications during this time and aim to minimize any disruption.
Typically, once Stone Bank approves your loan application, it is submitted to the appropriate government agency. When the agency receives your application, it is entered into a queue (similar to taking a number and waiting to be called).
However, during a government shutdown, agencies like the FSA, SBA, and USDA are closed and may not process new loan applications. This simply means your application will maintain the same “spot in line” until the shutdown ends and the previous applications begin the review process.
Stone Bank will continue to process and underwrite applications for government-guaranteed loans to the best of our ability.
Is my loan processing completely stopped?
It depends. If your loan has already been approved and is just waiting to be closed or funded, there may still be delays. If your application is in the early stages, it might not move forward until the government reopens.
If you are a Stone Bank customer and have specific questions about your FSA, SBA, or USDA loan, please contact your loan officer or call us at (833) 253-2265 and we will get you connected.
What support can I expect from Stone Bank during a shutdown?
We’re committed to being your financial partner throughout the ups and downs. Our team can:
- Help you understand your loan status.
- Work with you on temporary solutions if your loan is delayed or your business is impacted.
While a government shutdown can disrupt the government-guaranteed lending process, it doesn’t mean your business has to face the uncertainty alone. As your community bank, our Boulder Bankers are here to guide you through it with personal support, practical solutions, and clear communication.
If you are a current customer of Stone Bank and would like additional information, please contact us at (833) 253-2265.
Disclaimer: This information is for general education purposes only and not to be used as tax or legal advice. Stone Bank’s website may contain links to websites of other organizations that are no longer protected by our privacy policy or security practices. Stone Bank nor any of their employees assumes any legal liability for the accuracy, completeness, or usefulness of this information. Loans subject to credit approval and other program requirements.