The U.S. Chamber of Commerce breaks down five key ways a federal shutdown can disrupt small businesses, from halted loans to delayed projects and community-wide ripple effects.
Click here, to read more on the U.S. Chamber’s site.

A federal government shutdown can ripple through the economy and hit individuals, communities, and businesses—especially small ones—in multiple ways. The U.S. Chamber outlines five major impacts:

1. Small business financing loss
   The Small Business Administration (SBA) may halt or slow its lending and investment programs during a shutdown. This means many small firms could lose access to critical capital—impacting their ability to grow, hire, or invest in projects. U.S. Chamber of Commerce

2. Travel and mobility disruptions
   With government functions curtailed, processing of passports and visas can stall; airport operations (e.g. TSA) may be understaffed; and national parks or public lands often close. This can throw travel plans and tourism-dependent businesses into turmoil. U.S. Chamber of Commerce

3. Delays in infrastructure and regulatory approvals
   Key permitting, environmental reviews (from the EPA or Department of the Interior), and other regulatory processes slow down or stop. That can stall construction projects, infrastructure upgrades, and new development plans. U.S. Chamber of Commerce

4. Revenue hits for businesses tied to federal contracts or federal workers
   Contractors may not receive timely payments and often don’t get back pay. In regions heavily dependent on federal employment, consumer spending drops, affecting local suppliers and service businesses. U.S. Chamber of Commerce

5. Broader community & economic ripple effects
   The disruptions extend beyond individual firms: fewer loans, delayed projects, and reduced consumer spending combine to strain local economies, especially in communities with strong federal or public-sector presence. U.S. Chamber of Commerce