Nearly three-quarters of small business owners said economic conditions are challenging their company’s ability to raise funds — and that was several months before the government shutdown froze core lending programs administered by the U.S. Small Business Administration.
The Forbes Research 2025 Small Business Survey, which was conducted in the spring and involved 535 U.S. respondents, also found that 70% of small business owners feel the economy is challenging their ability to expand using loans and investments.
Now the context is even more challenging for small business owners as the government shutdown in Washington seems likely to enter its second month.
Each business day during the shutdown, small businesses nationwide are unable to access $170 million in SBA-backed commercial loans, according to data released by the federal agency earlier this month. Meanwhile, applications for new loans are not being approved putting applicants’ plans on hold.
Research Also Highlights Resiliency
The impasse between President Donald Trump and Congressional Democrats over Obamacare subsidies led a coalition of small business advocacy groups to publish a letter Monday calling on senators to pass a stopgap funding bill, which will allow negotiations to continue on spending measures.
“Each passing day adds to the uncertainty that undermines confidence on Main Street,” the letter from the seven groups warned.
But for all the challenges small business owners face, many are prepared for economic downturns. When asked, in the face of a sudden funding loss, if their company has the resources and strategies to stay operational for at least six months, 85% say they do.
Writer: Nick Clunn
Researcher: Dejarelle Gaines