Shutdown Impacting Small BusinessJanuary 24, 2019
Now in its 33rd day, the current federal government shutdown is the longest in history. The administration and Congressional Democrats are digging in their heels and no compromise appears likely anytime soon. The Senate is scheduled to vote today on two bills: a continuing resolution (CR) to provide short-term funding (through Feb. 8) to fully open the government with no extra funds for a border wall; and President Trump’s latest offer to provide temporary protections for some immigrants in exchange for $5.7 billion in border wall funds. Neither is expected to pass.
Despite appearances that these votes simply underscore an unbreakable impasse, they can also illustrate the need for better compromise, given that neither option currently on the table is likely going anywhere.
The shutdown is having increasingly negative impacts on America’s small-business federal contractors and our overall economy. Not only are those prime and sub-contractors being dramatically impacted by contract delays, stoppages and cancellations, the businesses in their supply chain, their employees and their families are being hampered. Furthermore, as tax season ramps-up and quarterly filing deadlines approach, assistance available to smaller firms is nearly nonexistent. Small-business programs, such as those under the U.S. Small Business Administration (SBA), particularly their lending programs, will begin to experience long delays due to the absence of staff and inevitable backlog of approvals. Most economists—those both inside and outside the administration—agree that this shutdown will have a chilling effect on economic growth and could result in zero growth if it continues.
NSBA has signed on to letters urging Congress and the administration to coalesce around one of the many compromises that have been floated in order to get the government back up and running.
Please click here to view NSBA’s official statement.