In a survey conducted by Pepperdine University and reported by the Washington Post, 48% of business owners support a temporary shutdown whereas 42% want government to avert it. What that could mean is that many don’t like the Affordable Care Act burden and sympathize with the right wing who want to fight it.
On the other hand, many small businesses depend upon SBA’s small business loan program, and a shutdown will be disruptive to their loan requirements as they acquire inventory for holiday sales, for instance.
For those in Congress who claim that they care about small business, you can’t bank on that.
Shutting down government and demonstrating riskiness to the world market does not portend the stability that financiers seek to support developing businesses. The fight for Affordable Care for all Americans is part of the balance needed to keep capitalists honest and committed to the nation that creates the environment for them to succeed.
Right now, Republicans are undermining that environment through their actions.
“SBA does not make direct loans to small businesses. Rather, SBA sets the guidelines for loans, which are then made by its partners (lenders, community development organizations, and microlending institutions). The SBA guarantees that these loans will be repaid, thus eliminating some of the risk to the lending partners. So when a business applies for an SBA loan, it is actually applying for a commercial loan, structured according to SBA requirements with an SBA guaranty. SBA-guaranteed loans may not be made to a small business if the borrower has access to other financing on reasonable terms.
SBA provides a number of financial assistance programs for small businesses that have been specifically designed to meet key financing needs, including debt financing, surety bonds, and equity financing.”
“A shutdown would immediately suspend approval of Small Business Administration loan guarantees, and you can imagine the disruption and potentially fatal impact that could have on start-up businesses,” Betsy Burton, a bookstore owner in Salt Lake City, Utah, told On Small Business. “This is a particularly critical issue in the last quarter of the year when we must pay for inventory we’ve acquired for the holiday season.”