Business Trends


11 04 2013

11 04 2013

Small Business Owners Frustrated With SBA Loans

When the Small Business Administration closed during the government shutdown, many small businesses saw their loans put on hold. But even those who were approved before the deadline, Washington Journal reported, are experiencing setbacks.

For some, the intermingled bureaucracy is bringing their loan to a dead end. Charlotte Calmels, a restaurant owner, was hoping to receive her SBA approved loan before a grand opening this month. However, before she can seal the deal, Calmels must confirm her legal immigration status. Though open, the federal immigration agency stopped receiving requests from the SBA.

“I have the keys to the restaurant,” said Calmels. But with the loan not going through, she may not be able to open or hire any employees.

Lynn Ozer, who works for the company that submitted Calmel’s loan, warns businesses that, even when the SBA gets back running, there could be delays of six weeks or longer to process loans. The backlog of approvals could drastically swamp the furloughed agency workers.

Many small businesses cannot afford that long of a wait.

“This is a new business,” said Ishwar Chauhan of his specialty pharmaceutical company. “Every day is important to us.” Chauhan secured an SBA loan, but has to wait for the agency to return so they can approve a modification to the agreement.

Loans on the decline

Some businesses may be considering loans from traditional banks to bypass federal delays. This route, however, may not be as effective as some believe. Bank lending was on the decrease before the shutdown even began. New survey data from Biz2Credit revealed that both big and small bank approval percentages dropped slightly during the month of September.

Prior to concern over the shutdown, banks expected to see an increase in approvals for the month, Bloomberg Businessweek reported. During the first half of September, banks were more plentiful with approvals. That number decreased, however, as a threat of a shutdown grew.

If budget uncertainty is enough to impact the rate of lending, small businesses that plan on getting a small business loan from a bank in the coming months may be out of luck. Current Senate agreements plan only to stall budget agreements rather than settle them. This means anxiety could remain aloof in the banking industry for months after the shutdown.

Options persist

In the meantime, small businesses should be aware of alternative financiers that can be of help. National Funding offers a variety of financing services that have been uninterrupted by the SBA closure. Businesses that can’t afford the wait on federal loans, or anticipate rejection from stiffening banks should learn more about National Funding’s lending options.

Find Out How Much Funding You Qualify For

Fields marked with an * are required
By clicking this button I agree to all terms and conditions.

Terms & Conditions

General Acceptance

Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.


US Patriot Act:

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan. What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number. We will also ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.


For Loan/Merchant Services:

The Merchant and Owner(s)/Officer(s) identified in the application (individually, an “Applicant”) each represents, acknowledges and agrees that (1) all information and documents provided to National Funding, Inc. (“NF”) including credit card processor statements are true, accurate and complete, (2) Applicant will immediately notify NF of any change in such information or financial condition, (3) Applicant authorizes NF to disclose all information and documents that NF may obtain including credit reports to other persons or entities (collectively, “Assignees”) that may be involved with or acquire commercial loans having daily repayment features and/or Merchant Cash Advance transactions, including without limitation the application therefor (collectively, “Transactions”) and each Assignee is authorized to use such information and documents, and share such information and documents with other Assignees, in connection with potential Transactions, (4) each Assignee will rely upon the accuracy and completeness of such information and documents, (5) NF, Assignees, and each of their representatives, successors, assigns and designees (collectively, “Recipients”) are authorized to request and receive any investigative reports, credit reports, statements from creditors or financial institutions, verification of information, or any other information that a Recipient deems necessary, (6) Applicant waives and releases any claims against Recipients and any information-providers arising from any act or omission relating to the requesting, receiving or release of information, and (7) each Owner/Officer represents that he or she is authorized to sign this form on behalf of Merchant.(8) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (9) this request is for business and not for consumer purposes.


For Equipment Services:

I hereby certify: (1) the information provided is true and correct, (2) you are hereby authorized to investigate all bank, credit, and trade references, and said references are hereby authorized to release any requested information to you or your nominee, (3) such authorization shall extend to obtaining personal credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (4) this information may be transmitted by us to you and by you to underwriter(s) for the purpose of granting me credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (5) I am over 18 years of age, (6) I acknowledge my rights under the Fair Credit Reporting Act, (7) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (8) this request is for business and not for consumer purposes.


Text Messaging:

By providing my wireless phone number to National Funding, Inc., I agree and acknowledge that National Funding, Inc. may send text and multimedia messages to my wireless phone number for any purpose. I agree that these text or multimedia messages may be regarding the products and/or services that I have previously purchased and products and/or services that National Funding, Inc. may market to me. I acknowledge that this consent may be removed at my request but that until such consent is revoked, I may receive text or multimedia messages from National Funding, Inc to my wireless phone number.

The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status or age (provided the applicant has the capacity to enter into the binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. If for any reason your application for business credit is denied, you have the right to a written statement of the specific reasons for the denial. To obtain the statement, please write to National Funding Inc., 9820 Towne Centre Drive, San Diego, California 92121. Funding amount and credit approval is subject to a full credit profile review.