The Trump Administration's Impact on SBA: What Small Businesses Need to Know

*This article reflects my perspective on the potential impacts of past and future SBA policy shifts. While no one can predict the future, these insights aim to help business owners stay prepared and informed.

SBA loans are a critical tool for small businesses, but policy changes can create uncertainty. Here’s what you need to know and how to stay ahead.

SBA Lending & Policy Uncertainty

Just two weeks into the Trump administration, a freeze on government aid caused concern about SBA programs. While small business aid was ultimately spared, this highlighted how fast access to capital can be disrupted by policy decisions. Reliable SBA lenders help businesses navigate these shifts.

Misinformation & SBA Loan Stability

Some claims misrepresent SBA loan performance, creating confusion. The facts:

• PPP was a grant, not a traditional loan. It was designed to be forgiven.
• EIDLs are government-issued disaster loans, different from SBA-backed loans.
• 7(a) and 504 loans are self-sustaining, funded by fees, not taxpayer dollars.

Misinformation could lead to harmful policy changes that reduce loan access.

Potential Changes & Impact on Business Owners

Policy shifts could affect SBA lending in key ways:

• Higher Borrowing Costs: Fee waivers on loans under $500K are set to expire, making loans more expensive.
• Fewer Lending Options: Changes to Community Advantage and SBLC licenses could limit access to capital for underserved businesses.
• Disaster Loan Funding Risks: SBA disaster loan demand is high, and funding shortages have caused delays.

How to Stay Ahead

1. Work with an SBA Lender You Trust – Get guidance from experts who understand shifting policies.
2. Plan for Higher Loan Costs – Adjust your financial strategy for potential fee increases.
3. Stay Informed – SBA changes can affect your funding options; awareness helps you act fast.

At Locality Bank, we help small businesses secure SBA funding with clarity and confidence. If you have questions, reach out—we’re here to support you.

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of Locality Bank. Locality Bank makes no warranty, express or implied, nor assumes any legal liability or any responsibility for the accuracy, correctness, completeness, or any actions taken based on the information provided. Always consult a qualified professional for specific guidance related to your situation.