With so much in the news on the developments surrounding a deal to possibly end the shutdown, NAGGL wanted to provide some clarity on the process ahead, the potential timeline, and what it all means for 7(a) lending and the secondary market. 

First, please keep in mind the timestamp of this message—with changes by the hour, this is the most up-to-date intel as of the time of publication, and it is important to recognize that parts of this message could likely be affected by events over the next several hours and days.

Late yesterday (Sunday), the Senate voted 60-40 to pass a procedural motion that simply allows the Senate to take up the vote on a Continuing Resolution, or CR. In total, 8 Democrats voted with Republicans to advance this deal forward to end the shutdown. To be clear, yesterday’s successful vote was not the Senate’s passage of the CR—it was just the agreement to proceed to a vote on the CR.  

So, when will a vote on the CR happen in the Senate? The latest intel indicates that the Senate is trying to vote on and pass the CR deal tonight.  However, no vote time has been announced yet. And under Senate rules, any single Senator can delay floor action for a significant period of time. NAGGL will be watching for these developments carefully.  Based on the latest information, the Senate could pass the CR deal as soon as today and as late as Wednesday, depending on several variables.  As of now, it is assumed that all 8 Democrats who voted to advance the CR will also vote to pass the CR, which means that the bill should be successfully passed by the Senate.

Then what? After the deal passes the Senate – which is what is expected –the House will then need to pass the legislation, and the President will need to sign it into law before the government is reopened. House Speaker Johnson is already calling for House Members to return to DC to be prepared for a vote and has announced he will give 36 hours’ notice after Senate passage and before the House vote. While the Senate version is expected to pass the House, the expected margin will be so slim (since it is expected that Democratic leadership and nearly all House Democrats will be voting “no” on the deal) that gathering enough Members of Congress to take the vote may cause a delay.  But based on the latest information, the House could pass the CR deal as soon as Wednesday and as late as Friday, depending on several variables.

After clearing the House, President Trump is currently expected to sign the deal into law after the House passes the bill. NAGGL will keep you posted on all of this timing. 

Now what is included in the latest CR deal? The CR, which is a temporary stopgap funding bill that extends the previous FY’s funding and authorization levels until a full-year funding bill is passed, extends funding to reopen the government through January 30, 2026 and is combined with a three-bill “minibus” which passes full-year FY2026 funding for MilCon-VA, Agriculture and the Legislative Branch (which are 3 of the 12 funding bills which covers those areas of the government).  In addition, the bill reverses the mass firing of federal workers during the shutdown and bars future layoffs through January 30. The deal also includes a commitment that a vote will be held by mid-December on expiring COVID-stimulus Affordable Care Act subsides.

What is important to know about this deal to end the shutdown as it relates to 7(a) lending? 

  • Special Flexible Treatment for 7(a) Lending and the Secondary Market During the CR: Under this CR deal, NAGGL was successful in helping to ensure that both the 7(a) Loan Program and the Secondary Market Guarantee Program do not have a prorated cap on authorization during the CR.  This means that lending and pooled sales will be able to meet the natural volume of the programs. Without the anomaly, both programs would be capped in authorization during the CR. This anomaly is not a given and is rare to see for any program—NAGGL fights every year for this language to be included in every CR on behalf of its members. 
  • What Does FY26 Look Like for 7(a)?: Note that the 3 bills included in the CR deal that are passing a full-year FY26 funding measure (as named above) do not include Financial Services, which is where SBA and 7(a) lending language is covered. FY26 funding and authorization levels as they relate to SBA and 7(a) lending are still being negotiated and NAGGL has been engaging in those conversations with key policymakers.
  • Shutdown Layoffs That Could Impact You: The CR deal’s reversal on layoffs during the shutdown of federal employees means that all the CDFI Fund employees fired last month will be reinstated. NAGGL knows this impacts several members that either are CDFIs or work with CDFI entities. 

When the government has reopened (hopefully by next week if all goes smoothly), NAGGL will be there with you every step of the way with real time info on exactly how 7(a) lending and the secondary market will be back up and running, so please keep a close watch for NAGGL updates. And, of course, we will continue to update you throughout this week as relevant news develops on Capitol Hill.

Finally, while NAGGL had planned to release a 3-part Capitol Sound Bites miniseries on FY2025 data starting tomorrow, given all attention has turned to ending the shutdown and the frenzy of activity that will take place next week as 7(a) lending (hopefully) resumes, we will be postponing that release. Stay tuned for information regarding when that miniseries will be released.  

We’re in this together—

NAGGL