Main Street Monday — How SBA Will Look in a Government Shutdown

January 22, 2018

By Bob Coleman
Editor, Main Street Monday

Main Street Monday — How SBA Will Look in a Government Shutdown

While the federal government shutdown ends today, the 29-page SBA contingency plan for a lapse in appropriations remains in effect.

Prepared in August 2017, the plan identifies staff that will be exempt and furloughed.

One-third of SBA employees will not be furloughed. These include 100% of staffers for the Office of Disaster.

For the Office of Capital Access, the office responsibility for SBA 7(a) and 504 lending, 30% are exempt as follows:

21 employees will be needed to ensure the continued operation of activities critical to the protection of government property and orderly shutdown activities.

These include: 10 employees at OCA’s commercial loan servicing centers in Fresno, CA, and Little Rock, AR, who will ensure that 504 loan program liquidation and servicing activities continue as appropriate.

SBA is solely responsible for liquidating 504 loans and ensuring the collection of obligations owed to SBA. If this function shuts down, the government would permanently lose critical recovery revenue on defaulted 504 loans.

4 employees at OCA’s headquarters office who will be needed to perform orderly shutdown activities, including notifying personnel and stakeholders—including SBA’s lending partners—of the shutdown and its implications; maintaining critical OCA contracts and issuing stop work orders on non-critical contracts; and overseeing OCA’s loan accounting systems and systems that support disaster lending.

3 employees at OCA’s National Guaranty Purchase Center in Herndon, VA, who will ensure that the 7(a) loan program liquidation and servicing activities continue. These are loans owned by SBA; therefore SBA is solely responsible for ensuring the collection of obligations owed to SBA. If this function shuts down, the government would permanently lose critical recovery revenue on these government owned loans.

4 excepted employees of the Office of Capital Access at the disaster processing centers.

Read the report here:
https://www.sba.gov/sites/default/files/aboutsbaarticle/sba-shutdown-plan-2017.pdf