Government shutdowns are costly political theatre to millions of small businesses

Op-ed views and opinions expressed are solely those of the author.

As Democrats and Republicans fight over the federal budget, many small businesses are fighting to stay alive.

Due to political impasses, the U.S. government is now shut down for an uncertain amount of time, and uncertainty is not good for small businesses who rely on government permits, purchases, and SBA loans to fund and expand their businesses.

According to U.S. Chamber of Commerce Vice President and Chief Policy Officer Neil L. Bradley, “History warns us that even a partial government shutdown has ripple effects on the U.S. economy. Shutdowns are harmful to the economy, the American people, and our national security.”

In a letter to Congress, Bradley urged Republicans and Democrats to quickly reach a compromise and warned about the billions lost during a month-long shutdown from December 2018 to January 2019. The U.S. economy lost $3 billion during that period, compounded by a reduced economic output by $11 billion in the following two quarters, Bradley noted.

In another letter posted on the White House website, National Small Business Association President and CEO Todd McCracken blasted Washington DC’s “political theater” at the expense of small businesses:

“Manufacturing this magnitude of crisis simply to grandstand and win partisan points irresponsible and unacceptable. While Members of Congress and their staff will continue to get paid, the millions of small businesses who rely on the federal government will not. They, their families and every business in their pipeline will feel the pinch of a shutdown – they always do.

“Government shutdowns are costly political theater that succeed in only two things: weakening the U.S. economy and confidence in our elected officials,” McCracken went on to say. “Now is not the time to send the message to the 70 million people who run or work for a small business that they do not matter.”

The U.S. Chamber also warned that “small businesses could lose $100 million in loan financing per day” due to the fact that the Small Business Administration will suspend their services during the government shutdown.

“As a result of the shutdown, we wanted to notify you that many of our services supporting small businesses are currently unavailable,” the SBA announced on its website.

According to Entrepreneur, “During a shutdown, new SBA 7(a) or 504 loans are not processed, which could affect other areas, impacting new purchases, upgrades, and investments.”

“The shutdown will hurt many small businesses, not only those that rely on government workers as customers and government purchases for survival, but also those who must now wait for government permits, processes, and approvals. Hopefully, we will howl loud and fast, and the shutdown will be short.” Bruce de Torres, Director of Communications, American Small Business League, ASBL.com.

It should be noted that this shutdown is unlike many previous ones. Republicans and moderate Democrats have actually already come together and voted for a “clean” resolution that includes no political strings. Democratic leaders including Sen. Chuck Schumer, terrified of their party’s radical left wing, are holding the government hostage over whether they will be allowed to continue pandemic-era spending or not – and that spending includes giving taxpayer dollars to millions who are in the country illegally. Democrats at first denied they were doing this, but Reps. Ro Khanna and Maxine Waters have since admitted it, while attempting to minimize the amount spent. But Trump and his allies have brought the receipts: nearly $200 billion would be spent on illegal alien healthcare under the Democratic plan.

America is more than $37 trillion dollars in debt, with the amount rising every day. Voters made their positions on illegal immigration and benefits for illegal aliens crystal clear in the 2024 elections when they put President Trump back in the White House and handed control of Capitol Hill to the party that ran on securing the border. Voters clearly want the border secure, and those in the country illegally sent home. Democrats would be wise to listen to the U.S. Chamber of Commerce, small businesses and voters on this and end their shutdown shenanigans.

Bill Martinez is an award-winning marketing and broadcast journalist and host of the nationally syndicated radio show, Bill Martinez Live. Find out more at billmartinezlive.com.

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