The government shutdown is finally over, and Small Business Saturday is just around the corner. On today’s special edition of the SBA Update, ASBN welcomed SBA Administrator Kelly Loeffler to guide entrepreneurs navigating the recovery and gearing up for the busy holiday season.
The shutdown caused widespread disruptions, particularly for small businesses reliant on federal contracts or SBA financing. Loeffler explained that when a prominent buyer, such as the federal government, is absent from the market for over a month, the ripple effect are significant. It’s projected that the shutdown resulted in approximately 40,000 jobs lost and up to $100 billion in economic impact, reducing GDP by an estimated 1.5 points.
The timing of the shutdown was especially challenging. Economic momentum has been strong, with wages outpacing inflation and the SBA reporting a record year in 2025, delivering more than $100 billion in support, including $45 billion in small business loans.
During the 43-day shutdown, however, no cash flow reached businesses from the SBA or federal contracts. Considering the average small business only has about 27 days’ worth of cash flow on hand, many were forced to temporarily close their doors. Approximately 5,000 businesses missed out on $10 billion in financing during the shutdown.
Now that the government has reopened, the SBA is processing roughly $500 million in loan value daily and working closely with its network of 5,000 active lenders. Loeffler emphasizes that cash flow is the lifeblood of a small business and encourages entrepreneurs who feel their lender isn’t acting quickly enough to reach out to lender relations specialists at any of the SBA’s 65 offices nationwide.
With Small Business Saturday approaching on Nov. 29, Loeffler encourages consumers to support local businesses early. Some small businesses generate as much as 20% of their annual revenue during this one day. Every month, small businesses collectively contribute roughly $1 trillion to the U.S. economy. The shutdown came at a critical time, just as businesses were restocking inventory and hiring for the holiday season.
Supporting local businesses creates a multiplier effect. For every dollar spent locally, it circulates multiple times through the community, strengthens employment, tax bases and local innovation.
She also encourages aspiring entrepreneurs to take the plunge. Times of significant change often present unique opportunities. With the government reopened, interest rates stabilizing, supply chains reshoring, and regulatory burdens decreasing, 2026 offers a strong tailwind for new and existing small businesses.
ASBN, from startup to success, we are your go-to resource for small business news, expert advice, information, and event coverage.
