WILMINGTON, NC (WECT) – As the partial federal government shutdown enters a second week, some area businesses are feeling the effects.
About half a dozen businesses that are clients of UNCW's Small Business and Technology Development Center are waiting to hear the status of nearly $4 million in federally-backed loans, said Fran Scarlett, the center's regional director.
The Small Business Administration isn't processing the loan applications during the government shutdown.
Scarlett said the applicants are established businesses that need the loans for expansion or working capital.
SBA loans are often favorable for small businesses because they require borrowers to put less money down. Also, the credit requirements for SBA loans aren't as stringent as traditional commercial loans.