STATEHOUSE – Small business loan disbursements remain halted due to the federal government shutdown, negatively impacting Indiana’s small and locally owned businesses, said State Rep. Tim O’Brien (R-Evansville).
According to the U.S. Small Business Administration (SBA), over $13 million in SBA loan distributions meant for Indiana businesses have been delayed each week during the shutdown, around $58 million in total. O’Brien said that members of the U.S. Senate have failed to pass a funding bill that would allow the federal government to reopen and resume distributions.
“This shutdown hurts Hoosier small businesses who count on stability from their federal government,” O’Brien said. “The Senate must come to the table and pass a funding bill so our local economies and job markets can get back on track.”
SBA data suggests that approximately 26 SBA-backed loans in Indiana are unable to be approved each week during the shutdown. Additionally, an estimated 39,000 civilian federal workers in Indiana are affected through furloughs or unpaid while still working,potentially reducing their spending levels.
In a press release sent last week, O’Brien shared his concerns about uncertainty over Supplemental Nutritional Assistance Program (SNAP) benefits also being delayed, negatively impacting vulnerable families and children in Indiana.
O’Brien said he is continuing to monitor the situation, and if the shutdown continues for an extended period, small businesses could be impacted even further.
