NEWS | Government Shutdown Continues to Harm Small Business Progress Across the Country

Shutdowns harm small business - NSBA continues to urge Congress to choose compromise and common sense and end the stalemate standoff over funding the government.

UPDATE NOV. 06, 2025 | After more than a month of a federal funding lapse, there are signs in Washington that both parties are exploring an “off-ramp” to reopen parts of government.

According to reports, there is a bipartisan group of senators working on a hybrid deal to pass a few full-year appropriation bills for some agencies, plus a short-term continuing resolution (CR) for the rest, while deferring tougher issues (e.g., health-care subsidies) to a later vote.

On the other hand, political headwinds remain strong, as some Democrats feel emboldened by recent election results, and Republicans are resisting major concessions, which could delay a deal.

Shutdowns harm small business, and, while there is hope that the shutdown may end in the near term, there is still no guarantee of a clean, full resolution yet.

Follow NSBA for updates on the shutdown, and urge your Members of Congress to choose common sense to reopen the government and fully support the nation's most important economic community.

____

UPDATE NOV. 05, 2025 | The federal government has been shut down since October 1, 2025, after Congress failed to agree on funding for the new fiscal year. The CBO estimates the shutdown could cost the U.S. economy up to $14 billion, slowing growth and straining communities nationwide.

Small businesses are taking a direct hit. The SBA has paused new loan approvals, freezing an estimated $170 million a day in funding. Federal contracts are stalled, permitting is delayed, and essential support programs are on hold — leaving small firms unable to plan, hire, or expand.

These are not partisan talking points — they’re real consequences for employers who make up the backbone of the U.S. economy. Every day the shutdown drags on, confidence erodes and local economies suffer.

It’s time for Congress to choose common sense and cooperation. Urge Congress to choose compromise and common sense to end the shutdown.

Contact your Members and Senators here.

____

UPDATE OCT. 29, 2025 | The federal government shutdown continues into its fifth week, with no immediate end in sight. While Senate Republican leadership is signaling some rank-and-file Democratic lawmakers might soon break from their caucus to work with Republicans on passing a clean short-term funding solution, Democratic leadership, nonetheless, is holding their hardline stance on blocking negotiations without legislative action to extend Affordable Care Act (ACA) subsidies.

The current short-term funding bill, which passed in the House last month and remains stalled in the Senate, would fund the government until November 21. Regardless of whether the Senate can pass the bill before this November deadline, Republicans will soon be compelled to introduce another short-term funding patch. Conversations over whether to set the next deadline in late January or mid-March are ongoing. 

Senate Majority Leader John Thune (R-S.D.) suggested President Trump would be willing to meet with Democratic leaders again to discuss Affordable Care Act (ACA) subsidies on the condition that the government is reopened first.

Bottom line: shutdowns harm the nation, and they especially harm small business. Share your concerns on the lingering partisan squabbling, and respond to our shutdown survey today.

*This survey has now closed.

____

OCT. 27, 2025 | As the federal government shutdown stretches on toward its fifth week, small businesses are feeling the strain. From delayed loan approvals and halted contract payments to uncertainty about upcoming opportunities, entrepreneurs across the country are bearing the brunt of Washington’s impasse.

Many small businesses rely on federal programs for funding, guidance, and stability, with resources now frozen as agencies remain shuttered. The Small Business Administration, for instance, has paused most loan processing, leaving thousands of entrepreneurs waiting for critical capital to start or grow their companies. Federal contractors, too, are facing unpaid invoices and stalled projects, forcing some firms to furlough employees or halt operations entirely.

Beyond the immediate financial impact, the shutdown is eroding confidence and slowing broader economic momentum. Supply chains tied to government work have been disrupted, permitting and compliance processes are delayed, and travel slowdowns are adding another layer of difficulty for small firms that depend on timely deliveries or face-to-face business.

While political leaders continue negotiations in Washington, small businesses already stretched thin by inflation, labor shortages, and economic uncertainty are left in limbo. For America’s entrepreneurs, every day the government remains closed is not just a political stalemate: it is lost revenue, lost opportunity, and, for some, the fight to keep their doors open.

Urge Congress to choose compromise and common sense to end the shutdown. Contact your Members and Senators here.