How a Government Shutdown Could Affect You and Your Business
Source: U.S. Chamber of Commerce
The U.S. Chamber has consistently warned about the harm federal government shutdowns have on millions of Americans and businesses of all sizes around the country.
Here’s a look at some ways a government shutdown could affect you and the small businesses in your community—and what you can do to prepare.
Small businesses could lose $100 million in loan financing per day.
During past shutdowns, the U.S. Small Business Administration (SBA) ceased some lending and investment programs, including stopping processing new loans for small businesses.
The effects on small business could be substantial. American small businesses could lose critical financing during a government shutdown. Small businesses without access to SBA financing would be less likely to purchase new equipment, hire new employees, or invest. Essentially, their plans to grow their business would be put on hold. They also would be likely to miss out on new business deals and opportunities.
This could have devastating ripple effects on other small businesses and the communities they support.
Make extra time for your vacation plans
During past shutdowns, there have been major impacts on both international and domestic travel.
If you’re planning to travel internationally this year, make sure you budget extra time to process and renew your passport. In past shutdowns, 200,000 U.S. applications for passports reportedly went unprocessed, and U.S. tourist industries and airlines reportedly sustained millions of dollars in losses.
Also, approximately 20,000 to 30,000 applications by foreigners for visas reportedly go unprocessed each day of a shutdown.
In case of a shutdown, it’s also a good idea to arrive extra early for flights (foreign and domestic) because the Transit Security Administration (TSA) may be short-staffed. If you’re planning on going to a national park, you’ll probably want to reschedule. In past shutdowns, national parks and other Department of the Interior (DOI) properties experienced major closures.
Expect more delays as infrastructure paperwork piles up.
A government shutdown can extend the length of time it takes for infrastructure projects to get through approval processes. Without funding for this paperwork being processed in an efficient manner, you could end up stuck in traffic.
A shutdown could also create delays in Environmental Protection Agency (EPA) and DOI environmental reviews, including loans or grants and issuing of permits. This might delay large construction projects and other similar activities that require environmental permits.
If you depend on federal workers for your small business, your revenue could dip.
Not paying federal workers on time could cost the economy billions of dollars and leave American families in the lurch.
The situation is especially serious for federal government contractors who do not get backpay once a shutdown ends. Not getting a paycheck has a ripple effect beyond each family’s own finances and could mean local businesses take a hit, especially in communities with a heavy military or federal government presence.