The end of the longest U.S. government shutdown in history would be a relief for small businesses that depend on federal contracts or funding.
The end of the longest U.S. government shutdown in history would be a relief for small businesses that depend on federal contracts or funding. For seven weeks, they’ve been reducing spending, weighing layoffs and looking for stable work while trying to reach shuttered government offices, according to several contractors.
House lawmakers are returning to Washington on Wednesday to vote on compromise legislation that would fund the government through Jan. 30. A majority of Democrats are expected to vote against the bill, which is likely to win approval in the Republican-led chamber.
Small business owners with government contracts say the shutdown has caused payment delays and the cancellation of some projects, and they will be working to make up for lost time and money, if the government reopens.Uncertainty on projects
Jackson Dalton, owner of Black Box Safety, a maker of personal protective equipment, was awarded a $1.9 million federal contract for flashlights the day before the shutdown started on Oct. 1.
The contract, which would account for 6% of his annual revenue, required the company in El Cajon, California, to spend $1 million at the outset. Dalton said he was unable to because the contracting office did not return his emails or phone calls.
“It’s had a major impact on our cash flow, on our operations,” he said. “Our suppliers are freaking out because they’ve been anticipating this award for like a year. And so they’re trying to spin up and order raw materials to build the goods needed for this contract.”
The only government communication Dalton said he’s received during the shutdown was an emailed stop work order. The contact called for the work to be performed in 120 days.Considering non-government projects
Eric Veal is owner and president of Interactive Knowledge in Charlotte, North Carolina, which creates digital interactive experiences for museums, educational organizations and cultural spaces with a staff of eight.
