NEWS | Government Shutdown Underway

Shutdowns harm small business.

Late last night, the federal government shut down at midnight after Congress failed to pass a funding measure that would allow agencies to carry out operations past Sep. 30. While Republicans in the House passed a stopgap measure earlier this month designed to extend current funding levels for a short period while long-term negotiations continued, the measure ultimately failed to advance out of the Senate when several Republicans broke ranks with the conference over long-term spending concerns. Senate Majority Leader John Thune (R-SD) made another attempt to pass the measure into law yesterday and avert a shutdown, but the effort proved unsuccessful. 

RELATED | URGE LAWMAKERS TO ACT TO END THE SHUTDOWN - COMPLETE NSBA's ACTION ALERT

Democrats offered a competing short-term proposal to fund the government but refused to support any extension of funding levels that did not include additional policy provisions, which Republicans would not agree to. In the absence of GOP consensus or a bipartisan agreement, the funding deadline was reached before a legislative solution made it to the President's desk. Negotiations are now expected to continue, but no immediate path toward reopening the government has yet emerged.

Throughout negotiations, NSBA urged lawmakers to avoid a costly government shutdown, citing the significant impact it will have on millions of small businesses, including:

• Millions of small-business federal contractors and subcontractors will be impacted by contract delays, stoppages and cancellations—regardless of what services or products they already have provided—which WILL affect every business in their supply chain, their employees and their families.

• Federal programs such as those under the U.S. Small Business Administration (SBA), particularly their lending programs, will begin to experience long delays due to the absence of staff and inevitable backlog of approvals.

• Local businesses supporting tourism associated with national parks will experience massive reductions in anticipated revenue.

NSBA President and CEO Todd McCracken weighed-in on the shutdown saying:

“Manufacturing this magnitude of crisis simply to grandstand and win partisan points will accomplish only two things: weakening the U.S. economy and confidence in our elected officials. And 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. Government shutdowns are costly, damaging and wholly avoidable. This is irresponsible and we deserve better.”

Please click here to read McCracken's full statement.