Small and even some regional banks are starting to feel the pinch of the federal shutdown on loans guaranteed by the Small Business Administration (SBA).
New SBA loan applications have been halted starting Oct. 1; meanwhile, loans already in the application process have been on hold.
Analysts hope that a speedy reopening of the government could offset the losses from the shutdown. However, the longer the government stays closed the harder it will be for banks to recover lost fee income.
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