SMALL BUSINESS STRATEGY
Looming Federal Government Shutdown Threatens Small Business Growth And Productivity
Rhett Battle
Contributor
I write on the relationship between business, policy and politics.
Sep 28, 2023,09:10pm EDT
USA Government Shutdown
It’s important, now more than ever, for lawmakers [+]
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Each year, Congress is responsible for passing appropriations bills that fund government agencies, such as the Small Business Administration, Department of Commerce, the Department of Defense, as well as federal programs including Medicare and Social Security. If Congress isn’t able to reach an agreement to fully fund the government, which is often the case, it will pass a Continuing Resolution (CR) or short-term stop gap measure to temporarily fund the government, and give lawmakers more time to negotiate funding bills.
In the last several weeks, Speaker McCarthy and House Republican leadership have made little headway towards an agreement to fund the government by the September 30 deadline due to pushback from members of the House Freedom Caucus, who publicly bucked leadership to block two attempts to start debate on a military funding bill last week. Members of the House Freedom Caucus are looking for spending cuts and a border security bill to be included in any agreement, though both items are non-starters for the Senate and the White House. The current debate to fund the government breaks a deal brokered by the White House, the Senate and Speaker McCarthy earlier this year to lift the debt ceiling. The Speaker pulled back from the debt ceiling agreement after members of the Freedom Caucus expressed their discontent with the deal. According to the negotiations at the time, the final debt ceiling agreement would have capped government spending until 2025. Reach an agreement and avert a government shutdown.
We know that small businesses are concerned about the impact of a shutdown on their businesses. According to Small Business for America’s Future's latest survey, a resounding 78% of small business owners believe a government shutdown would negatively impact the economy and small businesses. This concern is notable amid positive economic signs, like record low unemployment and stable inflation rates.
“A government shutdown isn't just a headline; it's a hit to the small business bottom line. Halting federal contracts disrupts existing agreements and stops new opportunities in their tracks. Additionally, with the SBA frozen, we would be cut off from crucial small business loans and resources. Every day of a shutdown would be a day where our economic recovery is at risk.” said Walt Owen, President of Susquehanna Glass Co., a small business based in Columbia, Pennsylvania.
It’s important, now more than ever, for lawmakers to set aside partisan politics and to prioritize the needs of America’s small business owners. Each year, Congress is responsible for passing appropriations bills that fund government agencies, such as the Small Business Administration, Department of Commerce, the Department of Defense, as well as federal programs including Medicare and Social Security. If Congress isn’t able to reach an agreement to fully fund the government, which is often the case, it will pass a Continuing Resolution (CR) or short-term stop gap measure to temporarily fund the government, and give lawmakers more time to negotiate funding bills.
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