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How will the government shutdown affect your SBA loan or Treasury’s Bureau of Fiscal Service debt?

With the government shutdown currently in effect and no plans to negotiate a compromise between Trump's administration and Congress until after Democrats take control of the House of Representatives in January 2019, operations may run a lot slower at the SBA and U.S. Department of Treasury's Bureau of Fiscal Service (Treasury/BFS).  However, this does not mean that collection against your SBA loan or Treasury/BFS debt will also be shut down.

The country entered the 7th day of a government shutdown that has closed a quarter of the federal government and furloughed an estimated 350,000 workers, sending them home at risk of losing paychecks during the holiday season. Barring a surprise resolution, it will become the second-longest shutdown of the decade when the new, divided Congress convenes next week to open its 116th session.

The Office of Personnel Management posted a tweet Thursday on Twitter in which it shared advice and letter templates for federal workers to use in negotiating for deferred rent and payments to other creditors.

“As we discussed, I am a Federal employee who has recently been furloughed due to a lack of funding of my agency. Because of this, my income has been severely cut and I am unable to pay the entire cost of my rent, along with my other expenses,” one of the sample letters says. It also suggests the possibility of doing building chores in exchange for reduced payments.

What does the shutdown mean for the SBA?

The SBA has been affected by the government shutdown.  On its website, the SBA has posted important information about the SBA shutdown and furlough of SBA employees.  Information re the SBA shutdown can be found here:  https://www.sba.gov/content/information-sba-shutdown-and-furlough

In fact, the SBA has implemented its Plan for Operating in the Event of a Lapse in Appropriations provides guidance and procedures for the Agency when either an annual appropriations act or continuing resolution has not been enacted for the Agency in a fiscal year.  This Plan can be viewed here:  SBA Shutdown Plan

What does the shutdown mean for the U.S. Department of Treasury's Bureau of Fiscal Service?

Treasury/BFS has also been affected by the government shutdown.  On its website, the Treasury/BFS has posted important information about the shutdown and furlough of its employees.

Information re the Treasury/BFS shutdown can be found here:  https://home.treasury.gov/employee-information-and-treasurygov-website-status-during-government-shutdown

In fact, Treasury/BFS has implemented its Plan for Operating in the Event of a Lapse in Appropriations provides guidance and procedures for the Agency when either an annual appropriations act or continuing resolution has not been enacted for the Agency in a fiscal year.  This Plan can be viewed here:  Treasury/BFS Shutdown Plan

While the government shutdown may affect operations at both the SBA and Treasury's Bureau of Fiscal Service on a temporary basis, it does not mean that aggressive collection action will also stop with your SBA or Treasury/BFS debt.

If you are facing an SBA loan default involving an SBA Unconditional Guarantee or a Treasury/Bureau of Fiscal Service debt problem, contact us today for a FREE initial consultation with an experienced SBA or Treasury workout attorney at 1-888-756-9969 or 1-888-303-6975.

We can analyze your SBA loan, Treasury/BFS debt or Private Collection Agency problem and advise you on a range of potential solutions.

We are here to help you with your SBA loan problems.

If you owe more than $30,000, call our experienced attorneys at (833) 428-0933 anytime for a Free Case Evaluation