Small businesses in California, Texas, New York, Florida and Ohio will be hurt the most by the longest government shutdown in…
Small businesses in California, Texas, New York, Florida and Ohio will be hurt the most by the longest government shutdown in U.S. history, according to a study from personal finance website ValuePenguin.com.
The government shutdown has put a hold on all Small Business Administration (SBA) activities, including the processing of SBA 7(a) loans, a key source of funding for thousands of small businesses across the country.
With zero SBA loans being processed at the moment, the backlog of companies waiting for SBA funding is growing – and could take months to clear in the aftermath of the shutdown – hurting small businesses for far longer than anticipated.
To measure and rank states whose small businesses would be most affected by the current shutdown, ValuePenguin analysts looked at the number of SBA 7(a) loans issued, the cumulative sum of the loans issued and the total number of jobs supported by 7(a) loans since 2010.
- Small businesses in California, Texas, New York, Florida, Ohio, Michigan, Illinois, Georgia, Pennsylvania and Minnesota will be hurt the most by the shutdown. Historically, these states have the largest number of SBA 7(a) loans approved, and cumulatively the largest sum of loans issued.
- Additionally, potential job losses will also be the highest in California, Texas, New York, Florida, Ohio, Michigan, Illinois, Georgia, Pennsylvania and Minnesota because of the huge volume of residents employed by SBA funding dependent small businesses in these states.
- Small businesses in Wyoming, South Dakota, West Virginia, Delaware, Alaska, Vermont, North Dakota, Hawaii, Montana and Maine are least affected by the shutdown, due to the very small number of small businesses here who rely on SBA loans.
- Since 2010 the Small Business Administration has issued over $177 billion in funding, by approving 472,000 7(a) loans. These loans have led to the creation of over five million jobs across the country.
So, it’s not just TSA agents and air traffic controllers being hurt by the shutdown. In fact, the damage is not even limited to government employees. Let’s hope the politicians in Washington can work out something soon.