The White House warned Friday that small businesses would miss out on $100 million per day in loans if there is a shutdown because Congress is unable to fund the government before a weekend deadline.
Administration officials argued in a memo that a shutdown would have “devastating consequences for small businesses and needlessly undermine America’s economic progress.”
A shutdown, according to the White House, would force the Small Business Administration (SBA) to stop processing new loans for small businesses, and small business loan applications wouldn’t move forward each weekday the government is shut down. The White House said a shutdown would deny more than $100 million in financing to small businesses every weekday during a shutdown.
“These delays can have devastating consequences for small business owners and the communities they support, including losing the ability to purchase critical real estate or equipment, losing out on business deals and opportunities, and being forced into high-interest, price-gouging loan,” the memo states.
The memo also highlights the states with the most small business financing from the federal government, including nearly $22.5 million in financing in California, more than $12.6 million in Texas, and more than $10.3 million in Florida.
The White House highlighted that Americans filed more than 10.5 million applications to help start small businesses in the first two years of the Biden administration. During a shutdown, it would also be harder for small businesses to apply for federal contracting opportunities, officials added.
Congress faces a late Saturday deadline to pass legislation to fund the government and prevent a shutdown, but House Republicans have been unable to agree to a plan to fund the government despite a deal that set ceilings on spending for the next fiscal year.
President Biden has accused Republicans of not abiding by that agreement, which he made with Speaker Kevin McCarthy (R-Calif.) in May. Under that deal to raise the debt ceiling, lawmakers voted for legislation that set ceilings on spending for the next year. Now, conservatives in the House are seeking to make deeper cuts than the agreement included.