Picture this: The Federal Reserve just cut rates, signaling that borrowing should be easier and more affordable. For small business owners, real estate developers, and entrepreneurs, this should be great news—the kind of moment that opens doors to expansion, new equipment, and growth.

But here’s the catch: while one door theoretically opens, another has slammed shut. Hard.

The government shutdown has frozen the Small Business Administration—the primary engine that distributes affordable, government-backed capital to the very businesses the rate cut is meant to help. It’s a frustrating paradox that’s leaving entrepreneurs stuck between theoretical opportunity and practical impossibility.

Let’s talk numbers. On an average business day, the SBA guarantees approximately 320 small business loans worth $170 million. With the shutdown now in its third week, we’re looking at a capital blockage of roughly $2.5 billion denied to nearly 4,800 businesses nationwide.

This isn’t abstract policy—it’s your reality:

The ripple effects go even deeper. Hundreds of thousands of furloughed federal employees aren’t receiving paychecks, creating a sharp contraction in consumer spending. If your business depends on local customers—and most do—you’re feeling this squeeze from both sides: you can’t access capital, and your customers are spending less.

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This perspective transforms a frustrating news cycle into something more valuable: a wake-up call. This shutdown exposes a fundamental weakness in the capital strategies of countless businesses that have become overly reliant on a single, politically vulnerable channel.

The real lesson? Diversification isn’t just smart—it’s essential for survival.

And here’s the uncomfortable truth: even when the government reopens, the SBA will be immediately inundated with a backlog of applications from businesses that have been waiting for weeks. Your loan won’t be processed overnight. The disruption doesn’t end when the shutdown does.

Whether you’re a small business owner, developer, or investor, understanding your options beyond traditional government-backed loans is no longer optional. Here’s where savvy entrepreneurs are turning:

Private credit has rapidly evolved from a niche alternative to a foundational component of business and real estate finance. Unlike traditional banks or the SBA with their rigid underwriting boxes, private credit lenders evaluate deals based on the intrinsic merits of your project, your business fundamentals, and your track record.

For small business owners: Private credit can finance working capital, equipment purchases, or expansion when traditional lenders say no.

For developers: They can handle complex deals—ground-up construction, transitional assets, value-add repositioning—that conventional lenders might reject.

The advantage? Flexibility, speed, and the ability to look beyond the standard lending checklist to understand what makes your business or project viable.

Asset-based lending (ABL) provides a powerful way to unlock liquidity trapped in your balance sheet. This financing is secured by your company’s assets: accounts receivable, inventory, equipment, and real estate.

For small business owners: If you have inventory sitting in a warehouse, outstanding invoices from reliable customers, or equipment that’s paid off, you can leverage these assets for immediate capital without waiting for government programs.

For developers: Real estate holdings, even those mid-project, can serve as collateral for the capital you need to keep moving forward.

The advantage? You’re leveraging what you already have to access the capital you need now. Your existing assets become your financial lifeline.

For immediate, short-term capital needs, fintech platforms like OnDeck offer an unparalleled solution. Using technology to streamline application, underwriting, and funding, these platforms can provide term loans and lines of credit in as little as 24 hours.

For small business owners: When you need to make payroll, cover an unexpected expense, or seize a time-sensitive opportunity, fintech can be a lifesaver. The application process is simple, approvals are fast, and funds hit your account quickly.

The trade-off? Speed and convenience come at a cost—higher interest rates. But when timing is critical and the alternative is missing payroll or losing a major opportunity, that premium might be worth paying.

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If you’re a small business owner navigating this environment, here’s your mindset shift:

Stop thinking of the SBA as your only option. It was never meant to be. The shutdown has made this painfully clear, but the lesson applies even in normal times. Government programs are one tool in a toolkit—not the entire toolkit.

Start building relationships before you need them. Don’t wait until you’re desperate for capital to explore alternatives. Research private lenders, understand what asset-based lenders look for, and establish connections with fintech platforms now. When you need capital quickly, you’ll already know where to turn.

Understand your business’s borrowing profile. What assets do you have? What’s your cash flow pattern? What’s your credit situation? Different lenders care about different things. The more you understand your own financial position, the better you can match yourself to the right capital source.

Build financial resilience into your operations. This means maintaining cash reserves when possible, diversifying your customer base so you’re not dependent on a single revenue source, and structuring your business so you can weather temporary capital constraints.

View this moment as preparation, not just crisis management. The businesses that emerge strongest from this shutdown will be those that used it as a catalyst to build more sophisticated, diversified capital strategies. Don’t just survive this moment—use it to future-proof your business.

For private credit investors and non-bank lenders, this moment has created a uniquely favorable environment.

Here’s why this matters:

Improved Deal Terms: With less competition, private lenders can negotiate more attractive terms—higher interest rates, stronger borrower covenants, and sometimes equity participation in future profits.

Higher Quality Deal Flow: In normal markets, the best projects with the strongest sponsors get financed by conventional banks at the lowest rates. During a shutdown, these high-quality borrowers are locked out of their preferred channels. Top-tier deals that would typically be inaccessible are now flowing to the private credit market.

A Structural Shift: This isn’t just a temporary opportunity. Private credit assets under management are projected to grow from $3 trillion at the start of 2025 to an estimated $5 trillion by 2029. The shutdown is accelerating a trend that was already reshaping the financial landscape.

Whether you’re running a local business, developing real estate, or investing in private credit, here are the three most impactful moves you can make right now:

Never rely on a single funding channel. Starting today, create a simple spreadsheet with three columns: private credit lenders, asset-based lenders, and fintech platforms. Research at least two options in each category. Document what they finance, typical rates, application requirements, and contact information. Then make introductory calls—not to apply for loans, but to build relationships. Think of it like insurance: you pay the premium (time invested in relationships) before the crisis hits. When you need capital quickly, you’ll already know where to turn and who to call.

When opportunity or crisis strikes, you need to move fast. That means knowing your revenue, expenses, profit margins, cash flow, and asset values without having to dig through files. The business owner who can answer these questions immediately has a massive advantage. Beyond just knowing your numbers, actively work to strengthen them: maintain good books, build business credit separate from personal credit, document your successes, and create cash reserves when possible. The better your financial position, the more options you’ll have when traditional channels close.

Structure your entire business with “what if” scenarios in mind. What happens if your primary funding source falls through? What if your biggest customer stops paying? What if consumer spending drops 20%? Create concrete contingency plans for each scenario. This also means diversifying your customer base so you’re not dependent on a single revenue source, and understanding which of your assets can be quickly converted to capital if needed. Having a Plan B isn’t pessimism—it’s professionalism. The businesses that emerge strongest from this shutdown will be those that used it as a catalyst to build more sophisticated, diversified strategies.

This crisis has exposed vulnerabilities, yes. But it’s also accelerating a fundamental shift toward a more diverse and sophisticated financial landscape.

For small business owners: The lesson is clear—your financial strategy must be as diversified as your customer base. Relying on a single capital source is as risky as relying on a single customer.

For developers: The projects that move forward in this environment will be those backed by entrepreneurs who built multiple funding pathways before they needed them.

For investors: The opportunity to deploy capital into quality deals at favorable terms is significant and growing.

The door to government-backed capital may be temporarily closed, but the financial ecosystem is far more expansive than a single program. Your job—whether you’re seeking capital or providing it—is to know where all the other doors are and how to open them.

The businesses that recognize this moment for what it is—a catalyst for strategic evolution—will emerge stronger, more resilient, and better prepared for whatever comes next.

What’s your experience navigating alternative capital sources? Have you found creative solutions during this shutdown? Whether you’re a small business owner, developer, or investor, reply and share your story—your insights might help someone else find their way forward.

I'm Leigh Brower, a strategic advisor who helps business owners, investors, and developers translate market complexity into profit clarity.

Community-first development isn’t just smarter—it’s the path to lasting impact and durable profit. The developers shaping the future aren’t waiting to be told what’s possible. They’re asking better questions, earlier.

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