Shutdown affects borrowers applying for small business loans - KSFY News - Sioux Falls, SD News, Weather, Sports

Shutdown affects borrowers applying for small business loans

Posted: Updated:

The SBA, Small Business Administration, stopped processing loans during the government shutdown.

This leaves many small business owners who applied for loans in limbo.

Which the mayor says is frustrating because it's impacting people in our town and giving some anxiety.

This building and this for sale sign represent Eric White's dream to run his own auto repair shop, until it came time for his loan to close on October first.


"When we went to the bank that morning and they said sorry this is a no-go, and they told me why, I felt my hear hit the floor. I just would never have expected something like this could affect someone like me," White said.

Small Business Administration loans help entrepreneurs get their business off the ground.
Banks put up 50 percent, the SBA provides another 40 percent, and the business owner put's up the remaining 10 percent. But the shutdown brought loan applications to a halt.  

Dakota Business Financing executive director Lynne Keller Forbes said "it has effects on everybody, it can an affect on a bank that's got a construction loan that's waiting to close and is unable to close, and now they're sitting out there."

"It can affect other sellers, it can affect the realtors because now the realtors aren't getting paid, because the deals aren't closing, it's a trickle down effect," Forbes added.

And without those loans, Mayor Mike Huether says the federal government pulled the dreams out from underneath people like Eric.

"To that small business owner, and to that potential homeowner, it means the world to them, and that's where reality sets in and I only wish that our government leaders in D.C. could feel it like they do," Mayor Huether said.

"I mean, there's people everywhere that are working without pay right now.  There's people who are unemployed.  I can't even get unemployment right now. I had a great... I had an awesome job that I left to follow the American dream, and I can't do anything about it now so I'm really disappointed in our entire government system," White said.

  • Owning Your Outdoors: Tree Care

    Owning Your Outdoors: Tree Care

    Friday, July 25 2014 9:36 AM EDT2014-07-25 13:36:12 GMT
    Doug says that the natural crown line of a tree should be easy to identify.Doug says that the natural crown line of a tree should be easy to identify.
    There are a number of reasons to prune and crown trees. Trees can grow to close to buildings, power lines or sidewalks and become a hazard. Trees can also be crowned and pruned to make them cosmetically more appealing.More >>
    There are a number of reasons to prune and crown trees. Trees can grow to close to buildings, power lines or sidewalks and become a hazard. Trees can also be crowned and pruned to make them cosmetically more appealing.More >>
  • Sioux Falls picks talent for events center opening

    Sioux Falls picks talent for events center opening

    Wednesday, July 30 2014 3:27 AM EDT2014-07-30 07:27:30 GMT
    Sioux Falls is selecting local musicians and entertainers to perform during the opening of the Denny Sanford Premier Center.More >>
    Sioux Falls is selecting local musicians and entertainers to perform during the opening of the Denny Sanford Premier Center.More >>
  • Michael Myers intends to sue Secretary of State Jason Gant

    Michael Myers intends to sue Secretary of State Jason Gant

    Tuesday, July 29 2014 11:36 PM EDT2014-07-30 03:36:04 GMT
    One of South Dakota's candidates for gov. is suing the secretary of state. Independent Michael Myers says Jason Gant is defying the Constitution by blocking his lt. gov. change. One of South Dakota's candidates for gov. is suing the secretary of state. Independent Michael Myers says Jason Gant is defying the Constitution by blocking his lt. gov. change.
    One of South Dakota's candidates for gov. is suing the secretary of state. Independent Michael Myers says Jason Gant is defying the Constitution by blocking his lt. gov. change. More >>
    One of South Dakota's candidates for gov. is suing the secretary of state. Independent Michael Myers says Jason Gant is defying the Constitution by blocking his lt. gov. change. More >>
  • Avera Medical Minute AHH: Rebuilding hearts, rebuilding lives

    Avera Medical Minute AHH: Rebuilding hearts, rebuilding lives

    Tuesday, July 29 2014 10:45 PM EDT2014-07-30 02:45:09 GMT
    Every survivor will tell you, they never saw it coming. For most people, heart attacks are a serious wake up call to get their life and health on track. So, how do you do that? To those who want and need it, the Avera Heart Hospital is helping rebuild hearts and encourage healthy living.More >>
    Every survivor will tell you, they never saw it coming. For most people, heart attacks are a serious wake up call to get their life and health on track. So, how do you do that? To those who want and need it, the Avera Heart Hospital is helping rebuild hearts and encourage healthy living.
    More >>
  • Potential changes to speed up city ordinance process

    Potential changes to speed up city ordinance process

    Tuesday, July 29 2014 10:43 PM EDT2014-07-30 02:43:03 GMT
    It's no secret Van Eps Park is causing problems. Minnehaha County just put up a fence to separate the park from the neighboring parking lot.More >>
    It's no secret Van Eps Park is causing problems. Minnehaha County just put up a fence to separate the park from the neighboring parking lot.More >>
  • Body of 'apparent stowaway' found in U.S. Air Force plane that traversed Africa

    Body of 'apparent stowaway' found in U.S. Air Force plane that traversed Africa

    Tuesday, July 29 2014 9:06 PM EDT2014-07-30 01:06:17 GMT
    The body of an "apparent stowaway" was found in the wheel well of a U.S. Air Force plane that traveled around Africa before returning to an American base in Germany, a Pentagon spokesman said Tuesday.More >>
    The body of an "apparent stowaway" was found in the wheel well of a U.S. Air Force plane that traveled around Africa before returning to an American base in Germany, a Pentagon spokesman said Tuesday.More >>
  • Ebola fears hit close to home

    Ebola fears hit close to home

    Tuesday, July 29 2014 9:05 PM EDT2014-07-30 01:05:15 GMT
    Patrick Sawyer had one stop to make before heading home to Minnesota to celebrate his daughters' birthdays: a conference in Lagos, Nigeria.More >>
    Patrick Sawyer had one stop to make before heading home to Minnesota to celebrate his daughters' birthdays: a conference in Lagos, Nigeria.More >>
  • Jury awards Ventura $1.8 million in defamation case

    Jury awards Ventura $1.8 million in defamation case

    Tuesday, July 29 2014 9:03 PM EDT2014-07-30 01:03:15 GMT
    Former Minnesota Gov. Jesse Ventura won $1.8 million Tuesday in his two-year fight to prove he was defamed by a military sniper and best-selling author who claimed to have punched out Ventura at a bar for bad-mouthing the Navy SEALs.More >>
    Former Minnesota Gov. Jesse Ventura won $1.8 million Tuesday in his two-year fight to prove he was defamed by a military sniper and best-selling author who claimed to have punched out Ventura at a bar for bad-mouthing the Navy SEALs.More >>
Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and KSFY. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service or our EEO Report.