Blog written by: Kendra Ott, Business Advising
As we hear the news that our government has indeed shut down, all of us are left asking, “what does that mean to me?’. As I asked that very question for myself, and felt it then pulsing through my own network, I wanted to share some highlights of what it might mean to our PCV community. We also want to know how the shutdown is affecting you and your business – let us know by leaving a note in the comment section below.
- The Small Business Administration = Largely on hold
The call has been made that the SBA is ‘non-essential’ during the shutdown. This means that the agency faces furlough of some 62% of its employees, which means that most of us turning to the agency for a new loan – Small Business (7a), Microloan, Real Estate and Equipment (504), and Disaster – will wait it out. It’s worth noting that in the last fiscal year (2012), the SBA lent $30.25 billion to small business owners.
- Government Contracting with Small Businesses = On hold
Small businesses that contract with our government will have to manage their cash flow even as the payments for their government work may be delayed or canceled outright.
- Employee verification = On hold
I received an email from Scott Hauge of Small Business California, letting his network know that E-Verify, the online system that employers use to check whether their hiring prospects may legally work in the US, was shut down on Monday. ‘This is a real problem in Arizona and Utah as employers are required to use this before hiring.’
- Obamacare legislation = Moving forward
Small business owners seem to be divided on the health-care reform law that is at the core of the current impasse. Out of nearly 1,000 small businesses surveyed, about half see it as a means to controlling health-care costs that have increased rapidly over the last few years. The rest, particularly those with more than 50 workers, say the law will force sluggish growth to avoid the cost of providing expensive and mandatory coverage to their workers.
How has your small business been affected by the shutdown? Leave a comment below.