Speedy Resolution to Government Shutdown is the Best Outcome for Small Businesses

“Historically, government shutdowns harm small businesses. Most notably, shutdowns cause small business owners to lose access to lending, technical assistance and other critical support services. For small businesses that work directly with the federal government as contractors, it means they do not get paid for the duration of the shutdown. These are all serious problems that can do irreparable harm to small firms. 

At the same time, small businesses are struggling with the ever escalating cost of healthcare, and congressional inaction on expiring tax credits that help lower premiums for health insurance plans purchased through the Affordable Care Act (ACA) Marketplace is a looming disaster. If the enhanced premium tax credits are allowed to end this year, many small business owners would see their health insurance premiums double – or more – overnight. Since more than half of all ACA Marketplace enrollees are small business owners, self-employed entrepreneurs or small business employees, that increase would force a significant percentage of small business owners to reduce their health coverage or drop insurance entirely as a result. Given how important this tax credit is for small businesses, it’s no surprise that Small Business Majority’s research found 74% of small business owners support extending the credit.

For the sake of Main Street, we insist that lawmakers come together to negotiate a speedy resolution to the disagreements that led to this government shutdown, and we implore lawmakers to act in the best interest of entrepreneurs as they make policy decisions that carry serious implications for America’s small businesses. This includes renewing the enhanced premium tax credits before it’s too late.”