Government Shutdown Stalls Lending, But TOD Keeps Lenders Moving Forward
As the longest federal government shutdown in history continues, its ripple effects are being felt across the lending space, particularly in SBA loan processing.
With agencies like the SBA operating at limited capacity or completely paused, SBA loan approval has come to a full stop until the government reopens.
The SBA estimates that 320 small businesses are unable to access $170 million in SBA loans with each day that the government shutdown continues.
This delay doesn’t just impact borrowers, but it also affects lenders, brokers, and financial institutions whose operations rely on timely SBA approvals.
And the longer the shutdown lasts, the more backlogged the system becomes.
But while many lending operations are stuck in limbo, TOD is helping lenders forge ahead.
TOD’s platform enables lenders and CPAs to access real-time tax data, even during government disruptions.
This capability is especially valuable during times of uncertainty. When traditional channels are blocked or slowed, having a reliable alternative to access borrower documentation can make all the difference.
TOD’s technology ensures that lenders don’t lose momentum, even when federal systems are offline.
By leveraging direct integrations and automation, TOD ensures that lenders can continue gathering and organizing borrower documentation, including IRS transcripts, without having to wait for the government to reopen.
This not only keeps loan files moving, it also helps lenders maintain strong relationships with their borrowers. In a time when many small business owners are anxious about funding delays, being able to show progress and preparedness builds trust and confidence.
TOD’s ongoing monitoring gives lenders access to real-time borrower tax data. This means once the shutdown has ended and the SBA is approving loans again, lenders will be able to access the most updated information on their borrower’s financials without having to lift a finger.
This proactive approach means that as soon as SBA loan approvals resume, lenders who have partnered with TOD will already have their documentation in order and their borrowers will be first in line for approval.