UPDATE: As of October 2, 2023:

Government Shutdown Averted

FY24 Government Funding Status:
Congress has avoided a government shutdown.

In an unexpected turn of events, the House passed a short-term continuing resolution (CR) on September 30, 2023 that will keep the government open until November 17, 2023.

The Senate quickly took up the bill and passed it and the President has signed it.

What’s in the CR for the 504 program:

• An extension of the current 504 and 7(a) authorization levels, prorated for the 45-day CR
  • FY 23 504 authorization level: $15 billion
  • FY 23 7(a) authorization level: $35 billion
• We are be able to continue working with lenders and borrowers to deliver 504 loans without interruption

What’s Next:
NADCO (the National Association of Development Companies) will keep raising issues of concern to the CDC lending industry as Congress considers a long-term funding bill in the coming weeks. We will keep you informed of activity around the 504 program.

If you have any questions, please reach out to us.

If you have any questions or concerns, please do not hesitate to email info@nwbusiness.org or call us (509) 458-8555.

As of September 29, 2023:

US Government Shutdown: Congress must approve a federal budget or continuing resolution to avoid a government shutdown by October 1, 2023. The likelihood that Congress passes a stopgap funding bill before midnight on September 30th is low and federal agencies have begun notifying staff to prepare for a shutdown. At this time, a government shutdown is imminent.

This will have a temporary impact on SBA 504 lending. Here are a few key points on how this may affect our SBA 504 clients if there is a government shutdown:

• The SBA will not process new approvals of SBA 504 loans during the government shutdown.
  • Loans that have been submitted, but have not been approved by SBA, as of 11:59 p.m. PST, Saturday, September 30th will be placed in a queue (on hold) until the government resumes operations.
  • Once the shutdown is over, these loans will be processed for approval.
  • The October pricing and funding will not be impacted. Funding will still occur on October 11, 2023.
  • Updates for the November funding will be provided as soon as they become available and are largely dependent on the length of a shutdown.

• Northwest Business Development will remain fully operational during a government shutdown. This includes:
  • Processing incoming loans for approvals and creating a queue for submission to SBA once the government reopens.
  • Processing approved loans and preparing them for the October 11 funding.
  • Service the funded loans already in the portfolio and helping our current borrowers to every extent possible, excluding processes that would require direct SBA involvement.

NWBDA is committed to providing updates as additional information becomes available. We are available to answer your questions and work with you and your clients.

If you have any questions or concerns, please do not hesitate to email info@nwbusiness.org or call us (509) 458-8555.