OCT. 27, 2025 | As the federal government shutdown stretches on toward its fifth week, small businesses are feeling the strain. From delayed loan approvals and halted contract payments to uncertainty about upcoming opportunities, entrepreneurs across the country are bearing the brunt of Washington’s impasse.
Many small businesses rely on federal programs for funding, guidance, and stability, with resources now frozen as agencies remain shuttered. The Small Business Administration, for instance, has paused most loan processing, leaving thousands of entrepreneurs waiting for critical capital to start or grow their companies. Federal contractors, too, are facing unpaid invoices and stalled projects, forcing some firms to furlough employees or halt operations entirely.
Beyond the immediate financial impact, the shutdown is eroding confidence and slowing broader economic momentum. Supply chains tied to government work have been disrupted, permitting and compliance processes are delayed, and travel slowdowns are adding another layer of difficulty for small firms that depend on timely deliveries or face-to-face business.
