The 2025 Facility Funding Gold Rush: Billions Released After Shutdown and a Year-End Approval Wave You Don’t Want To Miss

The second the shutdown ended, the game changed and not in a slow, gradual way. In a violent snap that is favoring sports and fitness facilities. This opportunity will not last long. Make sure you read this and understand how this opportunity can shape your sports and fitness programs future.

For 43 days, the federal government was partially offline. That meant the SBA’s core 7(a) and 504 loan programs were frozen, blocking an estimated $170 million in SBA-backed loans every single business day and sidelining roughly 320 small businesses a day that would normally get funded. Small Business Administration+1

When the funding bill finally passed and the government reopened, more than $5.3 billion in SBA loans that had been stuck in limbo suddenly started to move. Small Business Administration+1

That money has to go somewhere. Right now, it is hunting for high quality, cash flowing projects.

Sports facilities are at the top of that list.

Facility Founders is leading the charge as facility approvals surge in the year-end lending rush. President and CEO Ian Inman said, "Lenders are moving with a level of aggression we haven’t seen in years. They need to deploy capital fast and our facilities are getting pushed straight to the front of the line. We’re taking full advantage of this window for the clients already in our pipeline, and for the few who get in before year-end. The ones who move now are going to own the next wave of facility growth and dominate their local markets."

Big Picture: What Just Happened To Lending

Here is the chain of events in simple terms:

• Shutdown hits. SBA stops issuing new approvals on 7(a) and 504 loans. Banks and borrowers cannot move forward without an SBA loan number. Multiple sources confirm that SBA lending was effectively halted, with booked SBA volumes at banks dropping nearly 70 percent after October 1. Curinos+1

• Backlog builds. SBA itself estimates that over $5.3 billion in lending to roughly 10,000 small businesses was blocked during the 43-day stoppage. Small Business Administration+1

• Shutdown ends. The government passes a funding bill and reopens. News outlets note that this was the longest shutdown in U.S. history at 43 days. AP News+1 SBA announces that its loan programs are resuming “without delay.” Small Business Administration

• Pent-up capital has to be deployed. Multiple SBA releases show that even before the shutdown, SBA lending was at record levels: over $45 billion in 7(a) and 504 loans to roughly 84-85,000 small businesses in FY 2025, following historic growth in FY 2024 as well. Small Business Administration+2FedNews Network+2

So lenders were already in a high-volume environment. Then the shutdown essentially pressed “pause” on billions of dollars in deals that were otherwise ready to go. Now that the government is back online, that money is pouring out all at once.

Why Sports Facilities Are Getting Attention First

From a lender’s perspective, not all business models are created equal.

Right now they are sitting on:

• A huge backlog of deals that stalled during the shutdown

• Year-end pressure to deploy capital from budgets and SBA allocations

• A macro environment where credit standards have tightened overall, but strong deals still get done American Bankers Association+1

So what are they prioritizing?

They want:

1. Real assets

   • Buildings, improvements, equipment.

   • SBA 504 in particular is designed for real estate and major equipment, which is exactly what our sports-performance facilities require. Small Business Committee

2. Predictable cash flow

   • Memberships, recurring training packages, long-term client retention.

   • SBA and Federal Reserve surveys show lenders care heavily about cash flow stability when approving loans for expansion. Fed Small Business+1

3. Community anchor projects

   • Facilities that support youth sports, local families, and health are politically and socially “safe” bets.

   • When shutdowns get analyzed publicly, SBA and policymakers repeatedly highlight loans that create jobs and visible local economic impact. Small Business Administration+1

Our model checks every box:

• Real estate + buildout

• Highly predictable memberships and lesson revenue

• Strong community story and impact

• Operators who already coach, train, or run teams

That is why projects in the Facility Founders lane are sliding to the top of the pile as lenders rush to clear the backlog. We are pushing over 34 active builds to get funded ranging from $25k studios to $300 million professional league buildouts backed by major retailers and athletes.

The Hidden Year-End Dynamic: Why This Wave Will Slow Down

This is the part almost no one talks about.

The lending surge you are seeing right now is a combination of:

1. Backlog from the shutdown finally being processed

2. Year-end capital and budget dynamics that do not last

There are three forces converging:

1. “Use It Or Lose It” Capital Behavior

In government, there is a well-documented pattern: if departments do not use their budgets by year-end, they risk getting less next year. That creates a rush of year-end spending. Academic work and GAO-based analysis show federal agencies often spend at rates up to five times higher than average during the last week of the fiscal year, specifically because of “use it or lose it” rules. NYU Journal of Legislation+1

Banks and lenders are not federal agencies, but they behave in similar ways:

• Loan officers and business units are measured on annual production targets.

• SBA lenders, in particular, are judged on how much guaranteed volume they run through programs in a fiscal year. Small Business Administration+1

This creates a “we need to get these good deals closed before the window resets” mindset in Q4.

Right now, that urgency is multiplied by the shutdown delay. Deals that should have been spread across October and early November are bunched up and have to be pushed to closing before year-end.

2. Seasonal Lending Patterns And Year-End Tightness

Historical analysis of banking shows clear seasonality. One review notes that loan demand and activity often peak around late summer or early fall and then taper into December, influenced by budgets and rate expectations. Investopedia

On top of that, research on banks’ “window dressing” behavior shows that they often adjust their balance sheets around quarter- and year-end to look safer on regulatory metrics. Bank for International Settlements+1

In practice, that means:

• There is a sweet spot in Q4 where banks are motivated to push good loans across the finish line.

• As you get closer to the actual calendar and regulatory year-end cutoffs, some lenders start pulling back, not leaning in.

So the rush you are seeing now is not a permanent “new normal.” It is a temporary swell caused by:

• Shutdown backlog

• Year-end quotas

• Seasonal balance sheet management

3. A Credit Environment That Is Not Guaranteed To Stay Friendly

Major credit condition indices from the American Bankers Association and rating agencies show that, structurally, lenders still expect credit conditions to be challenging in the coming months, even with small recent improvements. American Bankers Association+2American Bankers Association+2

At the same time:

• Small business optimism has been wobbling, with the NFIB index bouncing around its long-term average and uncertainty running high. NFIB - NFIB Small Business Association+1

• Shutdown-related stress has already hammered some businesses’ cash flow and delayed expansions. U.S. Chamber of Commerce+2KSBW+2

Translation:

Lenders are not opening the floodgates forever. They are opening them briefly to clear quality deals and hit their numbers before everyone reassesses risk again.

When budgets reset, new guidance comes down, and regulators digest what just happened with SBA performance, it will not be shocking if standards ratchet tighter for certain types of borrowers or sectors. Barron's

You want to be funded before that conversation happens, not after.

What This Means For Facility Founders Type Projects

Here is where it gets real for you if you are a coach, trainer, or sports operator.

Right now, lenders are seeing:

• SBA and bank data proving that small business financing has been at record levels

• A documented freeze during the shutdown, including more than $5B in delayed SBA loans and thousands of blocked deals

• A sudden restart with political pressure to demonstrate that capital is flowing again Small Business Administration+2Small Business Administration+2

And then across their desks, they see:

• Fitness and sports-performance facilities

• Youth sports training centers

• Baseball, softball, soccer, and multi-sport performance spaces

• Concepts that already have lists of clients, teams, or programs lined up

From a risk standpoint, these look attractive:

• Real estate collateral

• Equipment that holds secondary value

• Membership and lesson structures with recurring revenue

• Strong local demand even when the economy is choppy

That is exactly why projects we place in front of funding partners are getting quick movement right now.

We are watching:

• Faster underwriting responses

• More willingness to structure blended stacks (SBA + conventional + equipment financing)

• Approvals on projects that, three or six months from now, might face more friction

The Window: Now Until Year-End

Let’s talk plainly.

The environment we see right now has four key traits:

1. There is a backlog of capital that must be deployed.SBA has acknowledged billions in delayed loans. Regional coverage shows states losing hundreds of millions during the shutdown alone. Small Business Administration+2WFTV+2

2. There is year-end motivation to get good projects funded.Year-end dynamics in both government budgeting and banking consistently show spikes in spending and balance sheet positioning as deadlines approach. NYU Journal of Legislation+2SouthState Correspondent Division+2

3. There is no guarantee that this level of aggressiveness continues into Q1.With credit conditions still flagged as “expected to weaken” by major banking associations, and with policymakers scrutinizing SBA performance, it is rational to assume underwriting will tighten again after this catch-up phase. Barron's+3American Bankers Association+3American Bankers Association+3

4. Sports-performance facilities look unusually strong in this mix.Real assets, community impact, and recurring revenue make our category ideal for lenders that want to move high quality deals quickly.

This creates what we call a gold rush window:

• Long enough to get your deal packaged and in line

• Short enough that waiting until “next year” is a strategic mistake

How To Take Advantage Of This Gold Rush (Without Being Reckless)

This is not “take any loan you can get” advice. This is “if you are serious about building a facility, this is when you move” advice.

Here is how to be ready in a way that lenders respect:

Step 1: Get Your Personal And Business Financials Cleaned Up

Lenders, especially SBA lenders, are going to look at:

• Personal credit history

• Existing debts and obligations

• Business revenue (if you already operate programs or online coaching)

• Tax returns, bank statements, and any existing P&Ls

Given how fresh the shutdown is, they want clean files they can underwrite quickly. Multiple bank and SBA resources advise borrowers to be fully documented to avoid further delays after government disruptions. Locality Bank+1

If you are not sure what “clean” looks like, that is exactly where we help our clients dial in.

Step 2: Define A Real Project, Not A Vague Dream

Lenders are approving projects, not ideas.

You need:

• A target square footage range

• A realistic budget per square foot for buildout and equipment

• A basic membership and offer structure

• A simple, believable revenue ramp for the first 12–24 months

SBA and Fed small business surveys both show that clear plans tied to realistic revenue are a differentiator when it comes to being approved. Fed Small Business+1

This is where Facility Founders gives you an advantage:

We bring real numbers, real comps, and real models from facilities we have actually built.

Step 3: Get Pre-Underwritten While Lenders Are Clearing The Backlog

Right now, lenders are motivated to:

• Move fully-packaged, low friction deals through the pipeline

• Show concrete progress to their own leadership and to SBA after the shutdown embarrassment

• Lock in high quality loans before year-end reporting and capital adjustments

They are not going to advertise this. But you can see it in the behavior:

• Lower response times

• More proactive outreach from SBA lenders

• Banks publicly talking about “thawing” billions in previously frozen loans Manufacturing Dive+1

If your project is packaged correctly, you are not fighting upstream right now. You are letting the current carry you.

Step 4: Secure Your Location And Timeline

Once your funding path is defined, you want:

• Site control (LOI or purchase/lease agreement with proper contingencies)

• A realistic construction and launch timeline

• A ramp strategy for marketing, memberships, and staff

Remember: SBA loan cycles and bank closing cycles can still take weeks. Loans that close in December are typically priced and underwritten in October or November according to banking analyses of seasonal loan behavior. SouthState Correspondent Division

That means the real window is not “sometime before December 31.”The real window is the next few weeks where your file can be fully underwritten and slotted into the queue.

Why Facility Founders Exists In Moments Like This

You are a coach, trainer, or operator. Your main job is not decoding SBA press releases or reading bank research on year-end balance sheet dynamics.

That is our job.

We track:

• SBA lending volumes and rule changes

• Government shutdown impacts on capital access

• Bank credit condition indexes and lender behavior

• Real world approvals and terms on the exact type of projects we build

So when a “weird” moment like this hits – a record-length shutdown followed by a sudden reopening into year-end pressure – we can see the opening before most people even know it exists.

Right now, that opening is clear:

• Billions in capital have just been unfrozen.

• Lenders are motivated to get high quality deals approved before budgets and conditions reset.

• Sports-performance and facility projects are exactly the kind of deals they want to show on their books.

You can either watch other coaches move into this window and open the facilities your athletes end up training in…

Or you can be the one signing the lease, cutting the ribbon, and owning the facility everyone else wishes they had built when the door was open.

If you are serious about building a facility in the next 6–12 months, this is not the time to “wait and see.”

This is the time to get your project packaged, positioned, and in front of lenders while the rush is on.