Shutdowns are harmful to the economy, the American people, and U.S. national security.
This shutdown began on October 1, when Congress and the Administration could not reach an agreement to continue funding the federal government. It is the sixth time since 1995 that the government has shuttered and will become the longest full government shutdown on record. History shows that shutdowns have ripple effects across the U.S. economy.
“The government shutdown is harming small businesses and costing American economic growth that can’t be recovered,” Neil Bradley, Executive Vice President and Chief Policy Officer at the U.S. Chamber of Commerce, said. “This shutdown is already one of the longest, and there doesn’t appear to be a quick resolution in sight. The impacts to businesses are beginning to pile up, and impacting both their current and future growth. Businesses need government to function.”
A Chamber analysis shows the 65,500 small business contractors across the United States have nearly $3 billion a week at risk, with $12 billion just in the month of October alone.
When the government partially shut down from December 2018 to January 2019, it reduced economic output by $11 billion in the following two quarters, including $3 billion the U.S. economy never regained, analysts estimate.
“In communities across the country, businesses and Americans rely on the functions of government,” Bradley said in calling on policymakers to avoid a shutdown. “From passports and permits to clinical trials and air travel, a well-functioning economy requires a functioning government.”
Is your small business impacted by the shutdown of the federal government? If so, we want to hear from you.
How long will the shutdown last?
While there is no way to know for certain, there are indicators to watch, as described in a memo to Chamber members:
- Level of public attention and pressure
- Impact of administration effort to make permanent changes
- Missed pay day
Is the shutdown affecting the business community?
Small businesses are sharing concerns ranging from the potential of delayed payments to lost sales and declining morale:
- “A government shutdown directly impacts our business because several of our customers depend on stable incomes from their careers in the federal government. When livelihoods are affected in such a manner, home repairs and projects get delayed, if not canceled. Therefore, our company incurs fewer opportunities. In addition, the communities we serve are also affected. ... A government shutdown is a threat to us all.” - Dolakeh Gono, CEO, Dolakeh Gono Co., Atlanta, Georgia.
- “This government shutdown will affect my business because of grants applied for and the grants programs not accepting applications due to the shutdown.” - Bridget Pettyjohn, Owner, Julia’s Hair Collection, North Carolina.
- “We support entrepreneurs and community leaders through LLC setup, licensing guidance, website development, and scroll-style content creation. The government shutdown has significantly impacted our client flow, delaying new business filings and reducing access to essential resources. As a result, our ability to serve and sustain local entrepreneurs has been disrupted, threatening both short-term operations and long-term community impact.” - James Pierre, owner, JP Vision & Services, LLC. West Palm Beach, Florida.
- “We specialize in branded apparel, signage, and marketing materials that help organizations promote their programs and events professionally. Our services combine creativity, precision, and timely delivery to meet the diverse needs of both public and private sector clients. A government shutdown would temporarily affect our ability to bid on contracts, receive payments, and communicate with federal buyers, delaying revenue and project timelines. It would also slow down renewals and verifications through SAM.gov and other certification portals, impacting small business participation in government contracting.” - Karla Horn, CEO, KJHConsultant Services, Houston, Texas.
- “Our cash flow will have an indirect impact, as short shutdowns can disrupt receivables. A month-long shutdown could mean weeks of unpaid invoices. This may cause us to rely on contingency reserves or spread expenses to maintain stability.” - Felicia Evans, owner, Salter Elite Consulting, Houston, Texas.
- “Biotech and life science companies are scaling back because of uncertainty. This impacts my ability to sign new contracts and generate revenue. ... I can't receive a SBA loan either because the government is also affecting that area of capital as well. It is very scary not to be able to generate income in America right now.” - Carol Houston, founder, BaysMartin Consulting, LLC, Otsego, Minnesota.
More Small Business Voices
Small Business Impact
What could be the impact of a shutdown?
Impacts would include less funding for small business, travel delays, and ripple effects in communities across America.
Learn ways to prepare
What can my small business do?
Our guide to surviving a shutdown has information that may be helpful.
