Partial shutdown if Congress does not reach agreement on government funding by January 19, 2024, after passing two short-term stopgap spending measures ahead of deadlines of October 1 and November 17 will be held. If no agreement is reached by February 2, 2024, the facility will be permanently closed.
The last government shutdown, from December 2018 to January 2019, was a partial government shutdown that lasted 35 days. Analyst predictions The shutdown reduced economic output by $11 billion over the next two quarters, including $3 billion that the U.S. economy never recovered from.
During the 2018-2019 partial government shutdown, some federal agencies, such as the Department of Health and Human Services (HHS), remained open because funding had been approved before the shutdown. This allowed HHS to move forward with clinical trials even as many other parts of the government were shut down. The impending government shutdown will affect all federal departments because Congress has not approved any of the 12 spending measures to fund government operations this year.
The Chamber is providing more detailed information about the possible closure period and its impact on the business community and economy so that members can prepare accordingly. Now is the time to prepare for potential closures, and the information in this article may be helpful to small businesses.
Learn more about the history of government shutdowns.
Small businesses that are federal contractors
If you are a prime contractor with the federal government, be sure to review your contract for language related to work stoppages. The federal government cannot enter into contracts, make changes, or exercise options during a government shutdown. However, actual work is expected to continue unless the contracting officer terminates the contract or puts the work on hold.
If you are a subcontractor, contact the main contractor as soon as possible. Find out what happens during a shutdown, whether work should continue, and especially what happens to you and your team when the main contractor receives a stop work order.
Learn more about steps federal contractors should take to prepare for a government shutdown. here.
Will federal employees still get paid during the shutdown?
While many essential services continue, including issuing Social Security checks, defending borders, and maintaining a global military presence, most of the 2 million military personnel and more than 2 million federal employees will be able to resume government operations. You will not receive your salary until you do so. The lack of paychecks extends beyond financial pressures on families to reduced spending, especially in communities with a heavy military or federal presence.
Unfortunately, the retroactive paychecks that federal employees will receive when the government reopens will not apply to federal contractor workers.
Impact on capital markets and SME financing
Although financial markets remain open, Small Business Administration (SBA) loan processing will likely slow.
If you have an SBA loan, you may want to contact your financial institution and ask how the government shutdown will affect your loan (SBA loans are private (provided through your financial provider).
The SBA made disaster loans during the 2018-2019 shutdown, so it is likely to continue issuing disaster loans, but you should expect the execution of new EIDLs (Economic Injury Disaster Loans) to be slow. there is.
Are you traveling for work? Please check flight status more frequently than usual, as delays and changes may occur due to limited federal personnel presence in air traffic control. Once you have confirmed your flight time, be sure to arrive at the airport early as the Transportation Security Administration (TSA) is also short on staff.
your voice matters
The only way to prevent a government shutdown is for lawmakers to reach an agreement. Congress at the local, state, and federal level wants to help you tell your story and inspire your legislators to work to prevent a shutdown.
If you would like to share how the government shutdown has affected your small business, please email us your experience. email@example.com.
Tom Sullivan is vice president for small business policy at the U.S. Chamber of Commerce. When the government shut down in 1995-1996, he received a 21-day furlough during his first job in Washington.
About the author
Thomas M. Sullivan
Thomas M. Sullivan is vice president for small business policy at the U.S. Chamber of Commerce. Mr. Sullivan works with a national network of chambers of commerce and national chambers to leverage the voices of small businesses and translate their grassroots power into federal policies that promote free enterprise and reward entrepreneurship.he runs america