Tuesday, July 26, 2011
Gov't Shutdown Affects Small Business
Karen Mills, administrator with the Small Business Association, says that the guarantee on current small-business loans will continue to be services, seeing as how they are actually now in the hands of banks. Anyone in the 'queue' and waiting for a final decision on a future loan will be put on hold. This could be devastating to many small businesses who are anxiously counting on those funds to keep them solvent.
If you have any government contracts there is a great chance that those orders will come to screaming halt until this is resolved. Again, for some companies that could be devastating. They, in turn, may have to lay off workers either temporarily or permanently.
If you are vying for a government contract you can put your energies elsewhere during a shutdown. In fact, most agencies that review these agreements will be closed and you'll be stuck talking to their answering service.
It is possible to survive a gov't shutdown if that were to happen. A company should have a contingency plan in place, much like a natural disaster plan. Perhaps it will be a good time to review safety standards with employees, conduct a mid-year inventory, or send employees to some training. A shutdown won't last forever and those who are ready and think before it happens, should be able to survive it.