This is a Thought Leadership Article by PrimeGlobal member firm KerberRose about how small business can recover after the US government shutdown.
Has the government shutdown impact the outlook on economic development of small business in the United States? During the 35 day partial government shutdown, many small business owners have felt the squeeze in lending.
One of the biggest impacts to entrepreneurs was the shutdown of the Small Business Administration’s lending and investment programs. Business owners who had applied were waiting for funding may have seen a delay in receiving those funds. The SBA also noted that they would not be entering into new contracts with small businesses. The Small Business Committee noted that there would be substantial impact to 7(a) loan program, the Community Advantage Program, 504 loan program, and microloan program.
“When the shutdown freezes business loans already in development it can really have a lasting effect on those businesses. Any government shutdown causes harm for an entrepreneur who is seeking funding to start or expand their business. Many businesses depend on these loans. This could be a loan for expansion, renovations, automation, or to buy new equipment. If those businesses don’t get funding, they may run into a situation where they cannot pay bills. What most experts are forecasting is a domino effect; not just for that individual business but for our economy.” Jane Vander Loop, manager at KerberRose.
The idea of another government shutdown is on the horizon and the accountants at KerberRose are here to help you with any questions. Please visit our website to find out more information on our accounting & business consulting services www.kerberrose.com
KerberRose S.C. is a regional firm of certified public accountants and management consultants. Our roots began in the late seventies. By providing quality, timely services to our clients, our firm has grown to include over 150 professionals located in 10 offices in Northeastern Wisconsin. We are a full-service public accounting firm offering services in the areas of auditing, accounting, tax, and management consulting. We serve small to medium clients in both the public and private sector. It is our philosophy to be unique by providing the broad range of services and in-depth industry experience our clients expect, while still retaining the personal service and responsiveness which has contributed to our growth.Learn more