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SBA Halts Loan Guarantees Amid Government Shutdown

Small business storefront with a 'Closed' sign

Atlanta, October 14, 2025

News Summary

The Small Business Administration has suspended its loan guarantees due to the ongoing government shutdown lasting over 13 days. This disruption affects $170 million in loans, benefiting around 300 businesses daily. Additionally, the SBA plans to relocate offices from cities like Atlanta, attributed to their immigrant-friendly policies. Local business owners express concern about the impact on their access to SBA resources, especially minority entrepreneurs who rely on these programs. The proposed ‘Save SBA from Sanctuary Cities Act’ could further complicate the situation for small businesses in affected areas.

Atlanta – The Small Business Administration (SBA) has halted its loan guarantees due to the ongoing government shutdown, which has exceeded 13 days with no resolution in sight. This disruption affects roughly $170 million in loans that benefit approximately 300 businesses daily across the country. Kelly Loeffler, head of the SBA and a former U.S. Senator, indicated that the agency’s decision stems from the shutdown and attributed the deadlock to Senate Democrats during a cabinet meeting with President Trump to discuss the situation’s impact on small businesses.

In addition to the loan guarantee suspension, the SBA plans to relocate offices from major cities, including Atlanta, citing these cities’ immigrant-friendly policies as a factor. Loeffler mentioned that the SBA prefers to establish its offices in communities that align with federal immigration law and support small business development. The planned moves come as the agency grapples with the consequences of the ongoing shutdown.

Atlanta city officials counter the notion that the city qualifies as a sanctuary jurisdiction. The term “sanctuary city” generally pertains to areas that predominantly limit cooperation with federal immigration enforcement, yet Georgia state law prohibits such policies. This situation raises concerns among local business owners about potential challenges in accessing essential SBA resources and expertise if the Atlanta office closes or relocates.

Already, many Atlanta small business owners have benefited from various SBA programs that offer loans, technical assistance, and government contracts. Local entrepreneurs, particularly those from minority backgrounds, fear that losing the physical presence of the SBA office may lead to reduced accessibility to these critical resources. Additionally, the transition to new locations is expected to incur significant costs related to new leases and staff relocations.

Abby Tighe, a former employee of the Centers for Disease Control and Prevention (CDC), held a news conference where she claimed that the Trump administration had fired around 1,300 CDC employees. Following this, over half of those individuals were reportedly rehired as critical to the agency’s mission. Tighe accused the administration of conducting systematic firings at the CDC as attacks on public health, noting that nearly a quarter of the staff was terminated during this time.

As the SBA prepares for these office relocations, there is a growing concern surrounding a newly proposed piece of legislation titled the Save SBA from Sanctuary Cities Act. This act recently received a predominantly party-line vote in the House and aims to enforce the relocation of SBA offices from sanctuary jurisdictions. As such, the impact of the SBA Atlanta office’s potential relocation could have far-reaching implications for the local economy and small business support resources.

With the ongoing government shutdown and the planned relocations, the future of small businesses in Atlanta and other similarly affected cities remains uncertain. Stakeholders anticipate that these developments will significantly alter the landscape of support available for local entrepreneurs, particularly those in need of assistance during these challenging times.

FAQ

Why has the SBA halted loan guarantees?

The SBA has stopped guaranteeing loans due to the ongoing government shutdown, which has lasted over 13 days with no resolution in sight.

How much funding is affected by the loan guarantee halt?

The SBA’s inability to guarantee loans affects approximately $170 million for 300 businesses daily.

What cities is the SBA planning to relocate offices from?

The SBA plans to relocate offices from Atlanta, Boston, Chicago, Denver, New York City, and Seattle.

What is the “Save SBA from Sanctuary Cities Act”?

The “Save SBA from Sanctuary Cities Act” is new legislation that received a mostly party-line vote in the House, aiming to enforce the relocation of offices from sanctuary jurisdictions.

Key Features

Feature Description
Loan Guarantee Halt SBA has stopped guaranteeing loans due to the government shutdown.
Financial Impact Affects approximately $170 million for 300 businesses daily.
Office Relocations SBA plans to relocate offices from major cities including Atlanta.
Legislation Introduced “Save SBA from Sanctuary Cities Act” to enforce relocation.

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STAFF HERE ATLANTA WRITER
Author: STAFF HERE ATLANTA WRITER

The ATLANTA STAFF WRITER represents the experienced team at HEREAtlanta.com, your go-to source for actionable local news and information in Atlanta, Fulton County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as vibrant music festivals like Shaky Knees and Music Midtown, major cultural celebrations including Dragon Con and the Atlanta Film Festival, and iconic sporting events like the Peachtree Road Race. Our coverage extends to key organizations like the Metro Atlanta Chamber of Commerce and the Atlanta Convention & Visitors Bureau, plus leading businesses in logistics, beverages, and retail that power the local economy such as Delta Air Lines, The Coca-Cola Company, and The Home Depot. As part of the broader HERE network, including HEREAugusta.com and HERESavannah.com, we provide comprehensive, credible insights into Georgia's dynamic landscape.

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