The government shutdown into day 25, and it’s having an impact on small businesses.
It’s bad news if your trying to start a business during the shutdown because the Small Business Administration is not processing loans or issuing certifications. Companies that are already working for the government won’t be paid for their work until the shutdown to find out if they got the job.
“A lot of businesses do not operate with month and months of cash on hand they operate with either lines of credit or they operate with tighter levels of cash on hand if their business depends on government contracting and they’re not getting payed that means their employees may not get payed and consequently you’re going to start to see after some period of time of a shutdown some level of business failures and closures,” said Beto Pallares a Professor in the Department of Finance at NMSU, Entrepreneur and Investor.
While President Donald Trump is holding steady on his government shutdown, business owners may have a long lasting damage to their companies because of it.
Pallares urges entrepreneurs not to give up hope, even through tough times. He says that the most important thing anyone can do is to be prepared for things, such as a government shutdown.
“Typically the better informed that both consumer and business owner the better the voting public and the better accountability the government will have in the democracy,” said Pallares.
Even though most government agencies are not operating right now, the Small Business Administration is still offering disaster loans.