Does the government shutdown affect your small business?
October 02, 2013
The federal government has officially shutdown. Read how this could affect your small business.
On Tuesday morning at 12:00am, a portion of the federal government officially shutdown. The shutdown comes on the heels of the Affordable Care Act launch. This marks the first time in 17years that a government shutdown has occurred. The impasse affects individuals and businesses in different ways, but how will the shutdown affect small businesses?
Companies that provide services to the federal government as contractors will immediately feel the affect. According to a National Association of Government Contractors survey conducted this week, 58% of respondents said the shutdown will have a negative affect on their businesses.
If your business was expecting to receive financing from the U.S. Small Business Administration, financing from the SBA has ceased until the shutdown ends. The SBA will continue to back loans already in their portfolio, but new loans will be guaranteed. Other services provided by the SBA, such as helping small businesses win government contracts, are also affected.
Entrepreneurs reacted to the government shutdown with a range of emotions. Will the shutdown affect your small business? Leave a comment with your thoughts.