Statements
Statement of Chairwoman Nydia M. Velázquez on The Shutdown: Economic Impact to Small Business
Washington,
February 6, 2019
As we are all aware, the recent government shutdown was a particularly painful experience that will leave a lasting impact on our small business economy and our workforce. For many federal workers, contractors, and small business owners, it was 35 days of missed paychecks, delayed loans, and strained budgets. Most unsettling to many of us was the shear uncertainty of just how long this would last.
Despite the shutdown ending, many small business owners and workers are still feeling its effect. While those direct and indirect costs are still being tallied, there are some things we already know. We know that $3 billion in economic activity has been permanently lost, according to the latest Congressional Budget Office figures. We also know that federal contractors and workers, many of whom live paycheck to paycheck, had to take extraordinary measures to make ends meet. We know that the shutdown delayed $18 billion in federal discretionary spending and shuttered numerous federal agencies, including the Small Business Administration. Because of the shutdown, SBA was forced to suspend many of its most crucial services, including the approval of small business loans and contractor certifications. During the shutdown, we heard one heartbreaking story after another. From small businesses who’ve lost customers and others waiting on SBA loans to small contractors who aren’t getting paid – the impact was felt by many. But, what we don’t know, — is the shutdown’s full cost to the small business community. Today’s hearing gives us the opportunity to answer this question. We will hear from a flourishing brewery that had to postpone the rollout of 2019 beers due to a lack of federal approval. We will also be hearing from a federal contractor that had to take extraordinary measures to ensure her employees were supported through this difficult time. These stories, along with many more, will give us insight into how small businesses, their employees, and local economies weathered this terrible storm. It is my hope that we can shed light on the difficulties entrepreneurs and federal workers alike are still enduring after the shutdown. It is my hope that lawmakers can come together to prevent another one in the future because the consequences are far too real for our nation’s job creators. I look forward to today’s hearing and thank the witnesses for being here to share their stories with us. |
