The staff and board of MCDC are committed to providing clear and accurate updates regarding pending action or inaction of the government which will have an effect on the SBA loan processing.
The federal government’s Fiscal Year 2025 ends at 11:59 PM September 30th. As of this writing, there is no indication of an agreement on a Continuing Resolution (CR), a short-term extension of the previous fiscal year’s funding level, is imminent. The CR passed by the House and not approved by the Senate would have kept the government open through November 21st which would allow Congress more time to reach a long-term funding agreement.
While we have seen this play out in previous years, the SBA has not yet provided guidance as to what level of service would be available in the event of a shutdown, if any. In the past, they have classified certain employees as “essential” to facilitate the funding of previously closed 504 loans. If that is the same, no one knows as of yet, guidance will be communicated as it becomes available.
Should a shutdown occur, which appears likely, MCDC will continue to process 504 loan applications up to and through Board approval. When a funding agreement is reached and the government reopens, the process by which SBA is able to approve loans should be expedient.
As it relates to Community Advantage 7(a) loans and Lender Service Provider activity, application processing will continue internally however, SBA approval and secondary market activity will be shut down.
Loan payments on both 504 and Community Advantage loans will continue to be processed as specified in loan documentation.
We will keep you informed of developments as we learn of the processes and plans pending a government shutdown and restart upon an agreement. In the meantime, please stay safe and have a great beginning to the fourth quarter.
Michigan Certified Development Corporation (MCDC) is a non-profit organization that helps small businesses secure funding. MCDC specializes in the SBA 504 Loan Program, which provides long-term, fixed-rate financing for the acquisition of fixed assets like real estate and equipment. MCDC also offers the SBA 7(a) and Community Advantage Loan Programs, which are more flexible and can be used for a variety of business needs, including acquisitions.
Since its inception in 1982, MCDC has been committed to promoting economic growth in Michigan by supporting small businesses.
For more information visit website or (517) 886-6612.
