SBA Loans Flowing Again, but Big Rush Came Before Government Shutdown
Tuesday, October 22nd, 2013
The Small Business Administration is processing loans again now that the government shutdown is over.
That's good news for businesses such as TL Technologies Inc., a specialty manufacturer of precision metal components in Ephrata, Pa. That company's $1.5 million SBA loan was held up by the government shutdown, forcing it to cancel delivery of two automated machine tools that it needs to fulfill a new contract. TL Technologies still hasn't received this loan yet, but at least it knows it will get the loan soon and won't lose the contract.
"I know it's coming, so it's just a matter of time now," said Chris Leh, president and co-founder of TL Technologies Inc.
Leh, who testified at a Senate hearing last week, is an example of how the government shutdown affected SBA lending. It inconvenienced hundreds of businesses whose loans were stuck in limbo, but it wasn't devastating because it only lasted 11 business days.
