How the Government Shutdown Is Affecting SBA Buyers — And What It Means for Automotive Businesses in Texas

When the federal government shuts down, most people think about National Parks, tax refunds, and military pay. But if you're trying to buy or sell a business using SBA financing, the ripple effect hits fast — especially in the service and automotive sector.

As of now, the SBA remains open for essential operations, but certain functions slow down or pause completely. And for buyers looking to purchase an auto repair shop, tire store, or service business, timing is everything.

Let’s break down how a shutdown impacts the deal flow — and what smart buyers and sellers should be doing right now.

✅ How SBA Lending Gets Slowed During a Shutdown

SBA loans don’t stop entirely — but the gears grind slower.

Key effects include:

• Delays in loan approvals

• Backlog in the SBA loan portal

• Longer timelines for closing

• SBA personnel availability reduced

• SBA guarantee processing slowdowns

• 
  

Even if your lender is ready to move forward, they rely on SBA for the final stamp. When the government hits pause, deals stack up — then flood the system once things resume.

🚗 Why This Matters for the Automotive Industry

The automotive repair industry in Texas is still booming, even with macroeconomic headwinds:

• More cars on the road than ever

• Average vehicle age in the U.S. is over 12 years

• Dealership repair prices continue to rise

• EV adoption growth cooling, but still pushing tech demand

• Fleet work & diesel repair remain strong in growth markets

Auto shops with the right ingredients — bay count, staffing, strong customer base, profitable track record — continue to draw strong buyer interest.

But here’s the nuance: Most first-time business buyers rely on SBA financing. And even a 2–3 week slowdown in underwriting can push deals into the next quarter, change tax strategies, and affect cash flow planning.

📉 Buyer Pulse Check: What's Happening Right Now

With the shutdown chatter and rate uncertainty, here’s what we’re seeing in the market:

Market Behavior	What We're Seeing
SBA-backed buyers	More cautious, verifying financials earlier
Cash buyers	Becoming more aggressive & selective
Sellers	Asking deeper questions about buyer qualifications
Lenders	Tightening DSCR, liquidity requirements
Auto shop valuations	Holding strong when books are clean
Deal timelines	Stretching from 60 days toward 90+ days

Translation: Strong businesses still sell. But the sloppy ones don’t.

💡 What Smart Buyers Should Do

If you're planning to use an SBA loan to buy a business:

✅ Get pre-qualified now✅ Gather tax returns & financials early✅ Expect lenders to scrutinize add-backs✅ Be ready to show you can replace the owner-operator✅ Line up a small seller note — lenders love to see skin in the game

If a shutdown happens, you want your file in line early, not waiting behind everyone who hesitated.

🏁 Advice for Auto Shop Owners Thinking About Selling

Now is not the time to wait until “things feel calmer.”

With aging shop owners, tech labor shortages, and consolidation increasing, there is still a strong pool of real, qualified buyers — especially in Texas.

Recommendations:

✅ Organize your P&Ls & tax returns✅ Document employee roles & payroll✅ Separate personal & business expenses✅ Be realistic about valuation and SBA underwriting✅ Consider offering a small seller note to strengthen SBA approval

A clean financial package = faster offers, stronger buyers, smoother SBA process.

📣 Bottom Line

A government shutdown doesn’t stop business acquisition — it just rewards the prepared and slows down the unprepared.

The Texas auto service market remains healthy. Deal flow continues. Buyers are motivated. Well-run shops are still commanding strong multiples.

Whether you're buying or selling, this is a moment to lean in, not sit on the sidelines.

🤝 Thinking About Buying or Selling an Auto Shop in Texas?

We specialize exclusively in automotive business sales and commercial real estate:

• Auto repair & performance shops

• Tire & alignment centers

• Diesel & fleet service operations

• Shops with or without real estate

If you want help evaluating your options — or you're ready to get ahead of an SBA backlog — let's talk.

📞 Call or Text: 210-857-8275🌐 RPM Shop Sales — Texas Automotive Business Brokerage📩 Request a consultation: Dustin@rpmshopsales.com

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