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As President Trump and House Republicans threaten a government shutdown, Rep. Nydia M. Velázquez (D-NY), the top Democrat on the House Small Business Committee is sounding the alarm on the negative consequences a shutdown would have on America’s small businesses.

“If Republicans fail to govern by letting our government shut down, the entire economy will take an unnecessary hit,” said Velázquez. “This is especially true for America’s small business owners who will see their opportunities to secure affordable capital put on hold, while also losing out on procurement opportunities and entrepreneurial services.”

In January of this year, just before the federal government suffered a shutdown under President Trump, Ranking Member Velázquez released a report highlighting the impending shutdown’s devastating consequences for small businesses. Among other findings, the report noted that:

• A shutdown would decrease capital availability to small businesses by $110 million per day due to delays and reductions in the Small Business Administration’s (7a) lending program.
• A shutdown could prevent the disbursement of over 100 loans totaling $85 million each week through the SBA’s 504 loan program.
• On a daily basis, a shutdown could cause small firms to forgo approximately 6,8754 contract actions worth $301,656,083.

“As we approach what ought to be a joyful and celebratory holiday season, a Trump shutdown would threaten the paycheck of hundreds of thousands of federal employees,” said Velázquez. “Not only is this cruel, it will create economic uncertainty and reduced spending, two factors that especially hurt small businesses who rely on the holiday season to sell their products and bring in revenue.”

The report is available online here.

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