Democrats seeking GAO analysis of impact of shutdown on small businesses

Top congressional Democrats are asking Comptroller General Gene Dodaro to request that the Government Accountability Office (GAO) analyze the impact of the 35-day federal government shutdown on small businesses.

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Due to the government shutdown, the Small Business Administration (SBA) was not able to provide resources to small businesses, including access to capital, contracting opportunities, and key counseling resources. U.S. Sen. Ben Cardin (D-MD) and Rep. Nydia Velázquez (D-NY) would like to see the GAO look at the impacts on businesses that rely on contracts awarded by agencies affected by the shutdown. Further, they would like to see them investigate the impact on businesses that rely on SBA loans as well as those in areas that experienced a significant closure of federal facilities. Additionally, they request that the GAO look at the impact of the closure of agencies that provide federal licensing and permits for small businesses.

“As you know, thousands of small businesses were harmed by the federal shutdown that took place between December 22, 2018, and January 25, 2019. The halting of government services for 35 days affected both the SBA’s various programs as well as the greater small business community,” Cardin and Velazquez wrote to Dodaro. “SBA programs serve a vital role in promoting entrepreneurship, providing access to capital and contracting opportunities, and offering key counseling resources. It is essential that Congress and the American public know exactly how the shutdown impacted SBA’s programs, the small businesses that rely upon them, and the small business sector at large.”

Cardin and Velázquez would also like the GAO to assess the SBA’s efforts to mitigate the consequences of the shutdown and manage the agency during the shutdown.