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Has the US Government Shutdown Affected Local Businesses Yet?
Posted on: 10/09/2013
By  Andy Rex
As the partial shutdown of the federal government continues in its second week, have its effects trickled down to the local economy?
 
WMOA News asked Pamela Lankford of the Small Business Development Center, who says one thing in particular could really hurt small businesses if the impasse continues.
 
“The (Small Business Administration) is shut down, which means that folks that are trying to get SBA guaranteed loans are going to have to have those postponed, because no one is working on or processing those loans right now.  If they have a very time sensitive project, they’re going to need to hope their bank might work with them on doing a non-SBA loan, or wait and see when those can be processed.”
 
Lankford says her bigger concern is the backlog of applications that may be waiting once the shutdown ends, and how much time it could take to get caught up. And, she says, for those working to start a business, there is another hurdle to get past.
 
“As they are trying to get their EIN, or their tax ID number, the IRS is shut down also.  So, they cannot get that tax ID number, which can hinder them from opening up a bank account.  So, we have little things that are causing some trickle down effects and slowing people up with their business plans.”
 
Lankford says she hasn’t seen any impacts locally yet.  And, she says everything relating to tax payments into the government are still operating normally.
 
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