Atlanta, October 22, 2025
News Summary
The federal government shutdown is harming small businesses across Georgia, with a significant number experiencing reduced growth and hiring opportunities. Kelly Loeffler, U.S. Small Business Administrator, reported that 5,000 small businesses in the state have government contracts. The shutdown has halted SBA loans, exacerbating financial pressures. A Goldman Sachs survey reveals that 72% of small business owners believe government operations are vital for their survival. As challenges like supply chain disruptions and inflation grow, uncertainties loom over Georgia’s business landscape.
Atlanta – The ongoing federal government shutdown is having a detrimental effect on small businesses throughout Georgia. According to Kelly Loeffler, U.S. Small Business Administrator, many small businesses are facing reduced growth and hiring opportunities. Approximately 5,000 small businesses in Georgia maintain contracts with the federal government, spanning various sectors such as defense and food service. The current shutdown has resulted in a halt of Small Business Administration (SBA) loans, further exacerbating the situation for these enterprises.
Businesses operating as food vendors and contractors are experiencing particularly severe repercussions. A recent survey conducted by Goldman Sachs revealed that 72% of small business owners believe it is essential for the government to remain open for their businesses to survive. This sentiment reflects growing anxiety within the small business community regarding their financial stability.
Economists at Oxford estimate that the shutdown could cost the U.S. economy between $7 billion and $15 billion in growth each week, revealing the far-reaching implications of the current crisis. Small business owners are increasingly concerned about issues such as supply chain disruptions and inflation. Indeed, 64% of small business owners report being affected by supply chain challenges, while 14% cite inflation as a primary concern. Meanwhile, the National Federation of Independent Businesses has noted a decline in the Small Business Optimism Index, highlighting a general sentiment of uncertainty among entrepreneurs.
In Georgia, recent labor statistics indicate that the state’s unemployment rate stands at 3.4% as of August, which is lower than the national average, even though there has been a decline in the labor force. Additionally, the city of Atlanta has approved a funding initiative of $925,000 aimed at assisting five small businesses in enhancing their storefronts prior to the FIFA World Cup, expected to attract additional business.
Amid these challenges, many small business owners are advocating for policy changes. Democrats argue that tax credits related to the Affordable Care Act (ACA) are crucial for small business owners and employees reliant on subsidized health coverage. A former small business owner, Teresa Acosta, has shared her experience of closing her catering business due to economic uncertainties and is promoting the extension of expiring health insurance subsidies. The uncertainty surrounding future policies significantly influences the operational decisions of small business owners.
Throughout this crisis, Kelly Loeffler has criticized Senate Democrats for failing to end the shutdown, underscoring that the current situation is unfavorable for the American public. She contends that individuals are losing their jobs and access to healthcare due to the shutdown’s impact on the economy.
The sentiment shared by small business owners, coupled with increasing costs and stagnant growth prospects, raises concerns about the sustainability of many Georgia businesses as they navigate through this challenging environment.
FAQ Section
What impact is the federal government shutdown having on small businesses in Georgia?
The federal government shutdown is significantly impacting small businesses in Georgia, with reduced growth and hiring opportunities.
How many small businesses in Georgia contract with the federal government?
Approximately 5,000 small businesses in Georgia contract with the federal government in various sectors including defense and food service.
What is the current status of Small Business Administration loans due to the shutdown?
Small Business Administration (SBA) loans are currently halted due to the shutdown.
What percentage of small business owners believe the government needs to remain open?
According to a Goldman Sachs survey, 72% of small business owners believe it is critical for the government to remain open in order for them to stay afloat.
How much could the shutdown potentially cost the U.S. economy each week?
Economists at Oxford estimate the ongoing shutdown may cost the U.S. economy between $7 billion and $15 billion in growth each week.
What challenges are small businesses facing?
Small businesses are facing challenges such as supply chain disruptions, inflation, and uncertainty about the future, with 64% affected by supply chain issues.
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Additional Resources
- Fox 5 Atlanta: Government Shutdown Straining Small Businesses Across Georgia
- Wikipedia: Small Business
- WTOC: GA Governor Candidate Visits Local Savannah Business
- Google Search: GA Governor Candidate Jason Esteves
- The Center Square: Enhancing Georgia Small Businesses
- Google Scholar: Georgia Small Businesses
- Spectrum Local News: Atlanta Investing in Small Businesses Ahead of World Cup
- Encyclopedia Britannica: Small Business Economics
- AJC: Georgia Must Reform Eminent Domain Laws for Local Businesses
- Google News: Georgia Small Business Laws
- Rough Draft Atlanta: Small Business Health Insurance Threat
- Google Search: Health Insurance for Small Businesses
Author: STAFF HERE ATLANTA WRITER
The ATLANTA STAFF WRITER represents the experienced team at HEREAtlanta.com, your go-to source for actionable local news and information in Atlanta, Fulton County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as vibrant music festivals like Shaky Knees and Music Midtown, major cultural celebrations including Dragon Con and the Atlanta Film Festival, and iconic sporting events like the Peachtree Road Race. Our coverage extends to key organizations like the Metro Atlanta Chamber of Commerce and the Atlanta Convention & Visitors Bureau, plus leading businesses in logistics, beverages, and retail that power the local economy such as Delta Air Lines, The Coca-Cola Company, and The Home Depot. As part of the broader HERE network, including HEREAugusta.com and HERESavannah.com, we provide comprehensive, credible insights into Georgia's dynamic landscape.
