Government Shutdown Presents An Opportunity for MCA

By James Schulze

This article discusses the impact of the current government shutdown on SBA lending and the opportunity it creates for MCA providers. It also provides insights on how MCA providers can quickly ramp up their sales to capture this near-term opportunity. 

At 30 days in, the government shutdown is causing plenty of stress for business owners looking for additional funding. Small Business Administration (SBA) loans have come to a screeching halt. Every day that the government is shut down, nearly $170 million in loans are frozen, leaving 320 small businesses unable to get much needed funding. As of October 28, 2025, the tally had reached $4.5 billion in paused loans with about 7,000 more U.S. business owners still looking for funding. As the pain grows, so too does the opportunity for MCA providers.

The opportunity for MCA providers

When the SBA stops approving new loans, small business owners don’t stop needing cash. They still need to cover the costs of payroll, rent, inventory, marketing and more. And for some, the need to expand their businesses remains critical and in need of funding.

During times of normal SBA operations, these business owners would typically look to the 7(a) and 504 programs for funding at lower interest rates. But these loans are not available right now and the Disaster Loan Program is only operating with minimal staffing. There really isn’t a clear path to funding for many small business owners. But for how long?

The time line for this opportunity

Business owners are realizing that SBA funding will likely be delayed for a long time. Those who were expecting a SBA loan approval in October are now in an indefinite waiting period. Cashflow pressures are continuing to mount, as many owners had sought SBA loans to meet their short-term obligations. Every day that goes by, owners must tighten their budgets, making quick capital options much more appealing. And, even when the shutdown finally ends, it will take months before the SBA can catch up. That means the need for flexible working capital is growing and will be for some time. So, how can MCA providers best identify the business owners who need capital now? 

MCA providers should buy more leads now 

The quickest and most effective way to connect with business owners looking for quick capital is to buy sales leads. Even if you’ve been cautious in the past about buying leads, now is the time to move forward aggressively because: 

• The demand is there – With $4.5+ billion in SBA loans not moving forward any time soon, business owners are actively searching for alternative financing.
• There is less competition – The shutdown has been devastating for traditional lenders and has taken them out of the competition for these prospects.
• Prospects have high intent – These business owners are not window shopping. They are seeking capital now.
• Sales cycles are shorter – The longer these business owners must endure the shutdown, the more urgent their need for working capital becomes.
• Higher ROI achieved – This opportunity will lead to faster closes and more funded deals per dollar spent on leads.

How MCA providers can capitalize on this opportunity

There are many ways MCA providers can optimize their sales effectiveness in this environment, including:

1. Buying more leads immediately – Volume is essential in these conditions. The number of business owners needing funding help is growing daily.
2. Prioritizing real-time and aged intent data – Real-time MCA leads and aged data with strong intent indicators (e.g., form fills, phone connects) perform the best in a shutdown environment.
3. Targeting SBA-reliant industries – The best targets are owners within sectors that most typically rely on SBA loans for funding. Some of the sectors most affected by the funding freeze include retail, auto repair, restaurants, and construction.
4. Quickly following up on opportunities – These businesses are actively seeking, evaluating, and comparing funding options. The speed at which you connect with these owners will determine your success in converting them to clients.
5. Optimizing messaging – MCA providers need to ensure their messaging is timely and relevant, such as “While SBA loans are paused, we’re helping businesses access the working capital they need – in days, not months.”
6. Preparing for continued demand – Even after the shutdown ends, SBA-reliant borrowers will be looking for alternative funding for some time. MCA providers who move aggressively right now will build relationships and close deals with business owners before traditional lenders reemerge in the marketplace. They will also establish themselves as the “fast funding” option in a crisis.

Conclusion

The shutdown has been a huge disruptor for the SBA loan channel. Every day, hundreds of qualified businesses are blocked from getting the working capital they need. For MCA providers, this is not the time to move slowly; it is the time to scale your business. More business owners are searching for quick capital than at any other point in 2025. MCA providers who buy more leads now will win those deals, grow their businesses, and enjoy the first-mover advantage while SBA funding remains frozen.

If you would like more information on how you can grow your MCA business, give The Leads Warehouse a call at 1-800-884-8371 or visit our website at http://theleadswarehouse.com.