When Trump’s team hit pause on a bunch of federal grants and loans last week, a lot of people started sweating— especially those in the ETA realm. With SBA 7(a) loans being one of the main ways to finance deals, the thought of funding drying up was terrifying to say the least. For those of you who lend in the space, or are mid-underwriting on a deal, I feel for you!
The good news? SBA 7(a) loans are NOT part of the freeze. The administration’s temporary halt on federal spending is mostly focused on programs tied to foreign aid, DEI initiatives, and climate-focused subsidies—not small business lending. For now, if you were in the middle of securing an SBA loan, your deal is still moving forward.
So, We’re in the Clear?
Not so fast.
While SBA loans dodged this particular bullet, change is still coming. Trump has tapped Kelly Loeffler to run the SBA, and she’s already signaling that major reforms are on the horizon. The SBA 7(a) program has been under scrutiny for rising defaults and fraud concerns, and there’s a good chance we’ll see stricter lending requirements or tweaks to how deals get approved.
For now, though, it is business as usual. If you’re under contract on a deal or hope to be soon, there’s no immediate reason to worry. But if you’re relying on SBA financing long-term, keep an eye on what Loeffler and the administration roll out in the coming months.
