NSBA Statement on the Potential Government Shutdown

April 8, 2011


Molly Brogan



Washington, D.C. – The National Small Business Association (NSBA) today weighed in on the looming government shutdown and how it would likely impact America’s small-business owners.

NSBA President Todd McCracken had this to say:

“Although NSBA is hopeful that Democratic and Republican leaders will work to prevent a government shutdown, we believe a not insignificant number of small businesses could be impacted should the budget impasse remain unresolved by tonight’s deadline.

“Our members have told us that the following stoppages or delays would have the greatest impact on their small business:

  • U.S. Small Business Administration loan processing and technical assistance programs
  • Internal Revenue Service assistance programs and refunds, which, given the millions of small-business owners who file as pass-through entities meaning they are taxed on the individual income level, the absence of assistance or delay of refunds could hold up critical capital for self-employed individuals.
  • Federal R&D program delays in funding for projects such as those funded by the Small Business Innovation Research program
  • Federal contractor payments and on-site access to perform their contracting duties

“On Wednesday, NSBA did a very informal straw poll of our members where we asked, ‘If there is a government shutdown how will it impact your business?’ Twenty percent said a shutdown would significantly impact their business, 15 percent said it would minimally impact their business and the majority, 65 percent, said it wouldn’t impact their business at all.

“Although the majority of small businesses polled by NSBA do not think a government shutdown will impact their business, the fact that it will have some impact on 35 percent of small businesses—particularly in financial matters—should not be taken lightly.”

Since 1937, NSBA has advocated on behalf of America’s entrepreneurs. A staunchly nonpartisan organization, NSBA reaches more than 150,000 small businesses nationwide and is proud to be the nation’s first small-business advocacy organization. For more information, please visit www.nsba.biz.