We are three weeks into the government shutdown, and information regarding what 7(a)-related services are available continues to evolve. So, we wanted to update our list of available services since a few of the items (indicated by **) have changed from prior reports. 

Here’s the updated list as of October 24 – we will keep you posted if anything changes: 

  • E-Tran closed for new loan approvals BUT lenders can continue to process loans up to the point of submission to SBA.
  • NO loan increases.
  • NO reinstatements of cancelled loans.
  • NO new secondary market transactions.
  • E-Tran is open for servicing actions (except increases and reinstatements).
  • SBA assistance is available for servicing and liquidation actions that are critical to protecting the government’s interests.
  • OCRM lender portal is open and the LLMS contract is continuing during shutdown.
  • FTA contract is continuing during the shutdown.
  • Disaster employees are not affected by the shutdown so, actions such as EIDL subordinations are available.
  • **Verification of non-citizen status for new applicants is NOT available. Our original information has now been confirmed as correct. The update provided in the NAGGL podcast released October 23 has proven not to be true since getting USCIS requests to SBA requires access to the processing functions in E-Tran which remain closed.
  • ** Verification of non-citizen status for servicing actions (e.g., new owner, new guarantor, etc.) can be submitted but lenders will not receive responses until the shutdown ends. Our current understanding is that lenders can access E-Tran servicing to upload the lender submission and can then send the required email notice to [email protected]. [Please see SOP 50 10 8, pp. 30-31 for complete information about the submission process.] And here it is important to note that E-Tran servicing cannot be used for new loans because an SBA loan number is required.
  • ** IRS verification is currently available. We have been advised that non-furloughed IRS staff are continuing to provide verifications via both the 4506-C and 8821processes. [Both lenders and tax vendors have reported success in receiving requested tax information during the shutdown.]

We want to thank the NAGGL members who have helped the entire 7(a) community by identifying how things are working at SBA. Because of your information and inquiries, we have been able to bring a number of shutdown-related issues to SBA’s attention, and in a few cases to obtain resolutions. So, please keep reaching out if you have questions or observe any behavior different from what we are reporting. 

Finally, and as we mentioned in an earlier communication, the most important thing to remember is that SBA staff is prohibited by law from taking any actions or responding to any questions that are not essential to protect the government’s interests. Hopefully, the shutdown will end before too much longer so that our industry will be able to get back to doing what it does best – providing the critical capital to fuel the small businesses that are the backbone of the American economy.