New Jersey Small Businesses Coping with Federal Shutdowns
Federal government shutdowns are not a frequent challenge that small business owners face, but they obviously do occur. When they do, revenue may be affected. They will likely be unable to get help from federal agencies. What can small business owners do to protect themselves, now or during any future shutdowns?
Social Media Marketing
If your customers are employees of an agency that is closed, you may have to boost revenue from other sources. Corporate and online businesses should still be operating. Reach out to them by increasing your social media marketing.
The shutdown is an opportunity for small business federal contractors to reflect on how dependent they have become on the government for most of their revenue. This should be something they work on even when there is not threat of a shutdown. If you must work for the government, think state and local. No matter what your business, if federal employees are a prime source of income, it is time to diversify. For federal contractors, the alternative is no orders coming in and not getting paid.
Small Business Loans
Small Business Employees are currently able to review or approve loan applications. However, the loan process starts with banks. Start the process now, if you wish to obtain an SBA loan. By the time the shutdown ends, the application should be completed.
Getting Back on Track
There will be a backlog of orders, requests and applications awaiting government employees when the shutdown ends. Things will take some time to get back to normal. It can take months to get back on track.
If your company is dependent on government contracts, or your customers are government workers, you should always have a financial buffer. Small business owners with a line of credit or some other financial cushion stand a better chance of weathering a shutdown.
Roughly 5000 federal employees in New Jersey, along with 800,000 nationwide, recently missed their first full paycheck. Residents enrolled in state-administered programs that rely on federal funding, such as nutrition assistance, cash assistance for families with children and child care subsidies, might see those benefits dry up. The sectors mostly impacted by any shutdown are federal employees, national parks and museums and some federal services. The federal agencies impacted include Agriculture, Commerce, Justice, Homeland Security, Housing and Urban Development, Interior, State, Transportation and Treasury.
The Law Office of H. Benjamin Sharlin LLC
is owned and operated by H. Benjamin Sharlin and serves all of Mercer County, New Jersey and the surrounding areas. Mr. Sharlin is a bilingual Spanish-speaking attorney who vigorously represents the interests of all his clients.
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