Sponsors (11)
The bill keeps SBA loan servicing active during funding lapses to protect small-business borrowers and the federal loan portfolio, but it does so at a measurable short-term cost to taxpayers, may set a precedent for automatic emergency spending, and does not prevent suspension of other SBA services like approvals and outreach.
Small-business owners keep SBA loan servicing (payments, collections, and related borrower communications) running during temporary funding gaps, avoiding missed payments, defaults, and credit harm.
Taxpayers and the federal government are protected from larger losses because continued servicing preserves the value of the federal loan portfolio and reduces default-related write-downs.
Small-business owners seeking new loans or SBA approvals may still face suspended outreach, application processing, and other services because the funding applies mainly to servicing rather than full SBA operations.
Taxpayers would face temporary outlays (estimated up to about $5.18 billion over a 30-day lapse) to keep SBA loan programs operational during a shutdown.
The bill creates a precedent for automatic emergency spending to maintain program functions during appropriations lapses, which could reduce Congressional leverage in appropriations negotiations and increase long-term fiscal costs.
Based on analysis of 2 sections of legislative text.
Temporarily appropriates Treasury funds during FY2026 SBA funding lapses to pay salaries and expenses to continue servicing specified SBA loan programs, with set dollar amounts.
Introduced September 26, 2025 by Herbert C. Conaway · Last progress September 26, 2025
Appropriates specific Treasury funds to keep the Small Business Administration (SBA) able to service existing loan programs during any lapse in its discretionary FY2026 appropriations that begins on or after enactment. The law provides prorated payments for up to 30 days of a lapse and sets fixed dollar amounts for servicing 7(a) loans, section 7(m) microloans, title V (SBIC) loans, and administrative costs for the 7(m) program.