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Lower sales and frozen loans: How the government shutdown is hurting small businesses
The shutdown has frozen $4 billion in Small Business Administration loans, impacting around 320 small businesses daily and causing layoffs and stalled expansions, officials said.
- Oct 27, 2025: Aksana Tran, owner of Sweet Lemon Cafe, reported lunchtime rush dropped about 50% as U.S. Small Business Administration stalled 6,000 loans blocking $4 billion.
- The main issue driving the government shutdown is Democrats' calls to extend enhanced tax credits, risking higher premiums for many small businesses if Congress lets subsidies expire.
- A recent press release said the shutdown affects roughly 320 small businesses daily, and Todd McCracken, associated with the National Small Business Association, noted delays disrupt expansions and leave federal contractors unpaid.
- As a result, many small employers face income loss and layoffs, with Todd McCracken saying the SBA loan delay causes 'real economic loss' and some firms lay off staff after stop-work orders.
- Looking beyond daily losses, experts warn that expiring subsidies could raise premiums, increasing pressure on small businesses as Senate Democrats' actions choke off Main Street's capital.
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24 Articles
Government shutdown puts SBA loans on hold
The government shutdown is putting loans from the Small Business Administration on hold. SBA estimates that $170 million in loans have been paused each day. That adds up to more than $4.5 billion over the length of the shutdown. SBA paid out more than $45 billion in loans to 85,000 small business in fiscal 2025. That’s a record high for the agency. (SBA releases state-level analysis of shutdown impact on small business lending - Small Business A…
Shutdown halts billions in small business loans, government contracts, SBA administrator says
Smaller companies across America have lost access to capital because of the government shutdown and those with federal contracts have received "stop work" orders, the head of the Small Business Administration said Monday.
·United States
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Coverage Details
Total News Sources24
Leaning Left1Leaning Right1Center22Last UpdatedBias Distribution92% Center
Bias Distribution
- 92% of the sources are Center
92% Center
C 92%
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