Virginia’s Small Businesses Brace for Impending Shutdown

Senators Warner & Kaine Sound the Alarm on Funding Delays and Business Impact.

As the clock ticks down with only a day left to the government funding deadline, Virginia’s small business sector stands on the edge, looking at a precarious future. Senators Mark R. Warner and Tim Kaine have voiced their concern, emphasizing the potential derailment of businesses in Virginia if the government fails to reach a consensus on its budget.

“Small businesses are the backbone of our communities and economy, and many of these businesses rely on support from the Small Business Administration to operate. Every day the government is shut down, critical access to capital provided by the Small Business Administration will be delayed, forcing Virginia small businesses that rely on this funding to make tough decisions about how they’re going to continue to stay open. The only reason we’re in this position is because of a small but loud group of members in the House who are refusing to fund the government if they don’t get everything they want. We remain committed to working in a bipartisan way to fund the government as quickly as possible.”

The primary concern remains the inability of the Small Business Administration (SBA) to greenlight new loans or alter existing ones through their 7(a) and 504 programs during a shutdown. Breaking down the numbers reveals the gravity of the situation: an estimated financing delay of $2,122,200 daily for Virginia’s small businesses.

This year, the positive momentum was evident as the SBA approved 955 loans, amassing a value of over $488 million, propelling Virginia businesses through their 7(a) program. But this momentum is at risk of being stalled.

The Goldman Sachs 10,000 Small Business Voices Survey underscores the sentiments of the business owners. A staggering 91% believe it’s paramount for the federal government to circumvent a shutdown. Moreover, 70% of these owners foresee a negative impact on their establishments if the shutdown ensues. Drilling further into the data, 93% anticipate revenue reduction, while 67% predict a drop in customer demand, attributing it to the ensuing economic uncertainty and instability.

While policy decisions and political wrangling continue, the real impact cascades down to the businesses and, by extension, the people of Virginia. As Senator Warner and Kaine reiterated, “We remain committed to working in a bipartisan way to fund the government as quickly as possible.” Time will tell if their efforts and the voices of the business community will resonate within the halls of Congress.