According to the Washington Examiner, Small Business Administration Administrator and former U.S. Senator Kelly Loeffler warned that the ongoing government shutdown could cause roughly 300 small businesses each week to lose access to $200 million in capital. Among those affected are about 30 veteran-owned businesses, underscoring the widespread impact of halted federal operations on Main Street.
Before the shutdown, the SBA had guaranteed more than 85,000 loans totaling $44.8 billion this fiscal year, averaging around 320 loan approvals per workday. Under the agency’s “Lapse Plan,” many of these functions are now suspended, preventing small business owners from accessing essential financing and support.
Loeffler emphasized that small businesses are the foundation of the American economy, driving job creation and local growth. However, disruptions in government operations can delay loans, stall contracts, and limit access to critical capital. For many entrepreneurs operating on narrow margins, even brief interruptions can have lasting consequences.
She urged lawmakers to end the funding impasse and restore full SBA operations, warning that prolonged inaction would deepen financial strain for thousands of small businesses. Loeffler also called for measures to ensure future shutdowns do not disrupt essential financial services.
“America’s small businesses can’t afford to be caught in the middle of political gridlock,” Loeffler said. “We need to make sure access to capital remains steady and reliable, especially during times of uncertainty.”
The Washington Examiner reported that the funding stalemate continues to stall vital SBA programs, leaving entrepreneurs across the country waiting for assistance as $200 million in small business capital remains locked each week.