By Charles H. Green
Time is money, but at this moment, time seems to be forever while money is starting to get short among many lenders and borrowers who are starting to feel the effects of the federal government shutdown.
It should be no surprise that every few hours another news outlet is reporting on a borrower or lender that has been affected by the SBA’s closure during the shutdown, which has stopped loan processing. Both 504 and 7(a) lenders are at a standstill, unable to get loan authorizations or debenture approvals from SBA.
Sioux Falls, SD Mayor Mike Huether jumped into the fray, criticizing how a shuttered SBA has dampened the dreams of one of his constituents. Eric White was supposed to close on the purchase of a building to house his planned auto repair business but arrived at the bank on October 1 to learn that the bank postponed the deal indefinitely. “I only wish that our government leaders in D.C. could feel it like they do,” said Mayor Huether, of the dashed hopes of Eric White.
According to the National Federation of Independent Business’s (NFIB) September Optimism Index, confidence among U.S. small businesses fell to the lowest level in three months as more companies grew pessimistic about the economic outlook. The index decreased to 93.9 last month from 94.1. “Three of the measure’s 10 components accounted for the decline,” according to William Dunkelberg, NFIB’s chief economist.
Brother, can you spare me a shot? Some small business owners are taking the shutdown in
stride with some empathy for those directly affected. D.C’s Union Pub is offering $3 “Shut it Down” whiskey shots during the shutdown and is among several businesses that are offering furloughed employees a break.
Really? The Standard Weekly reports that a notice posted on the SBA website warns furloughed employees that it is a criminal offense to use federal resources during the furlough period, including accessing government email accounts.