The head of the Small Business Administration said Monday that the government shutdown has cut off capital for small firms nationwide, with many federal contractors receiving “stop work” orders.
SBA Administrator Kelly Loeffler said at a press conference with House GOP leaders that the shutdown has halted about 6,000 small business loans worth $4 billion—money that could be helping companies grow and hire. She blamed Senate Democrats for blocking a bill to reopen the government, saying their inaction is hurting constituents who depend on these loans.
“In Chuck Schumer’s own state, that is $40 million every single week,” Ms. Loeffler said, referring to the Senate Democratic leader from New York. “In my home state of Georgia, Sen. [Jon] Ossoff and Sen. [Raphael] Warnock [are] shutting down $35 million in Main Street capital every single week.”
Loeffler, appointed to replace retiring Sen. Johnny Isakson (R-Ga.), served one year in the Senate before losing her election to Raphael Warnock.
Before the Oct. 1 shutdown, small business optimism hit a seven-year high, wage growth surpassed inflation, and GDP rose 3.8%. Confidence drove record demand for capital, with the SBA receiving over $100 billion in loan requests and issuing $45 billion to 85,000 small businesses in fiscal 2025.
“Senate Democrats have intentionally put that momentum at risk,” Ms. Loeffler said. “The SBA loan guarantee programs have been halted, and Main Street’s capital has been choked off because Senate Democrats are playing politics with lives and livelihoods.”
Loeffler cited a White House estimate that each week of the shutdown costs the economy $15 billion. She said the closure has halted SBA loan programs and hurt businesses dependent on federal contracts.
“Thousands of them across the country have received ‘stop work’ orders,” Loeffler said. “Thousands more who rely on federal workers as their customers are seeing their revenue dry up; here in Washington, of course, but around our military communities, around Main Streets across America. It’s our storefronts that are cutting back hours, manufacturers that are shelving expansion plans and generational businesses that are closing their doors for good. It’s business they will never get back.”
