Statement On The Government Shutdown’s Impact On Nevada Small Businesses
January 11, 2019
WASHINGTON, D.C. - Congressman Steven Horsford (NV-04) released the following statement regarding the government shutdown's impact on Nevada small businesses.
"The government shutdown not only hurts government employees, it also harms Nevada's small business and the 474,535 Nevada small business employees who could see their jobs and hours impacted by the shutdown," said Congressman Horsford. "On Wednesday, I voted to fully fund the U.S. Small Business Administration (SBA) so that it can reopen its doors and continue offering assistance to the Nevada business owners who rely on its programs to grow their companies."
"I've run my own small business, and I have first-hand experience with the challenges faced by entrepreneurs working to build their own enterprises. Congress should not make that process harder. Nevada's small business owners should not pay the price for Mitch McConnell's refusal to allow a vote to reopen the government."
On Wednesday, Congressman Horsford joined lawmakers from both parties in voting for the Financial Services and General Government Appropriations Act (H.R. 264) —legislation that fully funded the SBA, which is a key funding source for small and midsize business throughout the country. Nationally, the SBA guarantees approximately 5,000 loans a month — $25 billion a year — to ensure small businesses can obtain affordable interest rates. Until SBA funding is restored, lenders aren't willing to complete the loans, which will severely undercut small businesses owners and workers in Nevada's Fourth Congressional District.
Examples of SBA programs affected by the government shutdown:
- Under the shutdown, SBA 7(a) Loans for small business are halted: The 7(a) loan program is the flagship loan program offered by SBA. Data shows that a shutdown reduces access to capital for small businesses by approximately $90 million per day. This translates to 192 small businesses per day that cannot access the capital they need to grow and create new jobs.
- Under the shutdown, SBA's Small Business Investment Company (SBIC) program is curtailed: The SBIC program provides equity and near-equity financing to small businesses. During a shutdown, an SBIC is unable to make new or follow-on investments in their portfolio companies. It is projected that a shutdown stops over $105 million in SBIC financing from being made on a weekly basis.
- The shutdown is also harming consumers small businesses rely on: The government shutdown affects not only the small businesses, but the consumers they rely on to buy their products and services. With an estimated 380,000 unpaid furloughed federal employees and another 420,000 working without pay all over the country, small firms will lose business and customers.
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Issues:Economy