The federal government closed on Wednesday.
key takeaways
- The federal government closed at midnight. 1 October.
- A government shutdown can affect small businesses by unexpected methods.
- The US Chamber of Commerce estimates that small businesses may lose $ 100 million per day in loan financing.
At midnight of 1 October, the US federal government stopped, while elected politicians continued the debate Provisions One in Money billThe government has stopped this 15th time From 1981,
There is a detailed list of White House Posted on your website Among the agencies urging politicians to stop the prisoners, including the US Chamber of Commerce. Executive Vice President of the organization and Chief Policy Officer, Neel L. Bradley wrote to the US Senate, urging him to come on a proposal.
Bradley wrote, “History warns us that even a partial government shutdown has an impact on the American economy.” “Shutdown economy is harmful to American people and our national security.”
Connected: A guide to state chambers of commerce
Bradley mentioned in this letter that, when the US government partially stopped from December 2018 to January 2019, Analysts estimated The US economy lost $ 3 billion which was never. He also said that after the shutdown, there was a decrease of $ 11 billion in economic production during two quarters.
Here are four methods that affect a government shutdown small businesses:
No new small business administration (SBA) loan
SBA website Currently reads: “As a result of shutdown, we wanted to inform you that many of our services supporting small businesses are currently unavailable.”
During a shutdown, new SBA 7 (A) or 504 loans are not processed, which can affect other areas, new purchases, upgrades and affecting investment. According to the US Chamber, small businesses may lose $ 100 million per day in loan financing.
Shutdown home can also affect some areas of lending.
Melissa Kohan, a regional vice president of William Rivis mortgage, said, “Borrowers who are taking a loan or required flood insurance may expect a delay in closing.” entrepreneur In an email.
Passport delay
If you are planning to travel to business and need to update your passport, you may be out of luck. In the last shutdown, estimated 200,000 applications Delayed or unsafeHomeland Security Department also suspends Global entry Application during shutdown.
Connected: Most companies stop at good service – but the real development multiplier is something else
Foot traffic loss
The US Chamber has warned that businesses located near government agencies or national parks are likely to have a decline in traffic and as a result, revenue.
Loss of government contracts and permits
Small businesses that rely on government contracts will possibly experience delayed payment or can also see the contracts completely canceled.
key takeaways
- The federal government closed at midnight. 1 October.
- A government shutdown can affect small businesses by unexpected methods.
- The US Chamber of Commerce estimates that small businesses may lose $ 100 million per day in loan financing.
At midnight of 1 October, the US federal government stopped, while elected politicians continued the debate Provisions One in Money billThe government has stopped this 15th time From 1981,
There is a detailed list of White House Posted on your website Among the agencies urging politicians to stop the prisoners, including the US Chamber of Commerce. Executive Vice President of the organization and Chief Policy Officer, Neel L. Bradley wrote to the US Senate, urging him to come on a proposal.
Bradley wrote, “History warns us that even a partial government shutdown has an impact on the American economy.” “Shutdown economy is harmful to American people and our national security.”
Connected: A guide to state chambers of commerce
