How a federal government shutdown could impact your small business + resources to get you through it

A federal government shutdown is currently in effect as of October 1, 2025, due to a lapse in government funding. As Congress works toward a solution, here’s what small businesses may want to do right now, plus some vital resources to carry you through this uncertain time. 

How might a federal government shutdown affect small businesses?

As a federal agency, the Small Business Administration (SBA) is impacted by a shutdown, which can restrict access to capital for small businesses. In accordance with the agency’s most recent contingency plan, in the event of a shutdown, the SBA stops approving and processing new loans for many of its loan programs including 7(a) and the microloan program. Disaster assistance funding, however, would still move forward under this plan as well as Economic Injury Disaster Loans (EIDL).

A government shutdown may also impact the regulatory federal offices small businesses rely on to obtain the certifications and approvals they need to operate. And employers hoping to hire new employees could hit a snag as they lose access to E-Verify, a federal internet-based system that determines employee eligibility to work in the United States. 

What can small business owners do right now? 

Collect on outstanding invoices

Collecting on any outstanding invoices can give your cash flow the boost it needs to survive a shutdown. Do this as soon as possible to avoid a situation where your clients can’t pay. Here are 20 tips to get paid faster. 

Reduce overhead costs

Pause or eliminate unnecessary expenses so you can direct your cash flow to the things that matter most, like your employees. Here are 14 ways to reduce operating costs. 

Build a cash reserve

It’s never too late to start saving for a rainy day. Set a monthly savings goal and treat it as a non-negotiable. Then, create strict guidelines for tapping into your reserve. Here are some tips for building a business cash reserve in a pinch. 

Take out a private loan

Long-term SBA loans may not be an option in the event of a shutdown, but a short-term private business loan can help if you run into trouble. Here’s everything you need to know about small business loans. 

Talk to your vendors

If you find yourself unable to pay your bills for any reason, explain the situation to your vendors and ask to work out a payment plan. They may be willing to accommodate. Here’s your guide to working with vendors and suppliers. 

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