Each day of shutdown blocks $170M in SBA loans for 320 small businesses—fund Americans, not illegal aliens.

Question

Every day the shutdown continues, 320 small businesses can’t access an estimated $170 million in SBA-backed loans - choking off vital capital that allows them to hire, invest, and expand.

Funding for America‘s small businesses should come before funding for illegal aliens.

Answer 1

The claim is true, but it is important to point out the misleading implications of the claim itself. The original post was put out the official U.S. Small Business Administration, and the factual aspect of the post is correct. It is important to point out the bias of the U.S. Small Business Administration. The administrator of the administration is Kelly Loeffler actively supports the current administration. While there is nothing inherently wrong with that it does lead to some bias in the information the SBA puts out. We must look critically at the wording and implications of their post. Their claim that the lack of funding for small business loans is a direct cause of illegal aliens lacks clear evidence. The official article of the SBA on this topic blames the democratic party for the shutdown while Forbes credits the fact that both parties lead to a shutdown. So yes, while this fact is true, it also has some exaggerated aspects of it.

https://www.forbes.com/sites/rhettbuttle/2025/10/02/uncertainty-hurts-investment-shutdowns-are-bad-for-business/

https://www.sba.gov/article/2025/10/21/sba-releases-state-level-analysis-shutdown-impact-small-business-lending

Comments

I like that you mentioned that Loeffler actively supports the current administration, as it is relevant to the claim and fact-check.

Answer 2

overall, this is an factual statement put out by the official U.S. Small Business Administration that accurately states that as the days of the shutdown continue 320 small businesses loose access to $170 million SBA-backed loans. The most recent statement released from the U.S. small business administration published on October 21, 2025 states that a total of 4,800 small businesses have lost access to a total of $2.5 billion in SBA-backed commercial loans since the shutdown began. An article by Forbes elaborates on situation stating that small businesses with federal contracts cannot be awarded by such contracts for the work that they have to do during the government shutdown according to the U.S. Chamber of Commerce. This is especially impactful for small businesses under federal contracts because the business is still expected to continue to work unless the contract is either terminated or set to a stop-work status by the contracting officer. We can be sure that the information published by Forbes is reliable because they draw from information issued by the U.S. Chamber of Commerce website.

https://www.sba.gov/article/2025/10/21/sba-releases-state-level-analysis-shutdown-impact-small-business-lending

https://www.forbes.com/sites/rohitarora/2025/10/14/three-reasons-why-the-government-shutdown-is-hurting-small-businesses/

https://www.uschamber.com/small-business/how-to-survive-a-government-shutdown-a-small-business-guide

Answer 3

This claim is mostly true, though it includes political framing.

The US Small Business Administration  confirmed in an official release on October 21, 2025 that the federal shutdown has frozen its two main loan programs, the 7(a) and 504 programs, which provide essential financing for small businesses. The SBA stated: “Each business day the shutdown continues, an estimated 320 small businesses nationwide are unable to access $170 million in SBA-backed commercial loans.” This matches the claim’s numbers almost exactly. Multiple credible outlets, including Squared Compass and Reuters have cited the same SBA data.

However, the SBA specifies “each business day,” not “each day.” That small distinction matters, since loans are processed only on weekdays, meaning the total impact is slightly overstated if weekends are counted.

The second part of the statement “fund Americans, not illegal aliens” is political commentary, not a factual claim. There is no evidence that funds blocked by the shutdown are being redirected to undocumented immigrants.Overall, the claim’s figures are accurate, but its wording exaggerates timing and adds unsupported political framing.