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Small Business Owners To Soon Feel Effects Of Shutdown

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Rochester: Small Business Owners To Soon Feel Effects Of Shutdown
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Most people in the Greater Rochester area are probably not feeling the affects of the government shutdown, at least not yet. That may change the longer the shutdown continues.

"Most people are not going to notice much of a difference unless maybe they planned a vacation to Washington and want to visit the monuments, which will be closed. I think where you'll actually see an affect is if the federal government doesn't extend the debt ceiling in a few weeks, which would mean essentially the government wouldn't be able to pay its bills, then you'll see enormous repercussions for the country, but right now I think we're okay," said University of Rochester political science professor David Primo.

Even though the government shutdown will have little affect on most of us, there's one segment of the population that could be hit hard if this goes on for an extended period of time. Small business owners may begin feeling an affect in the coming days.

Basic tax payments and tax filings will remain the same. However, if a business owner overpays on its quarterly withholdings, Mike Trabold, compliance director for Paychex, says the IRS will most likely withhold any refunds.

For businesses just starting out, it may be impossible to obtain a small business loan.

"The SBA is for all intents shut down during this period. Businesses that are trying to get an SBA loan and get that guaranteed government financing, that's not going to be a possibility during the shut down. That's going to have potentially a very direct impact on small businesses from a financing perspective," Trabold said.

Trabold says it may be wise for those seeking a small business loan to try and get financing elsewhere.

"That's difficult for a lot of small businesses but it's always a good opportunity to try and get that. By and large, it's probably a matter of having to wait to get that comfort of that SBA loan until the shutdown is done."

So who's to blame? Primo believes almost everyone in Washington is at fault.

"The Republicans are focused on the wrong issue. Obamacare, whether you love it or hate it, it's the law and trying to change it at this point is hopeless given the political realities. On the other hand, Democrats aren't showing any real political leadership to deal with the nation's fiscal problems like Medicare and Social Security. They think those programs are basically just fine and it's a shame neither party is willing to exercise political courage right now," Primo said.

Primo says the longer the shutdown lasts, the more people it will affect.

Rochester: Small Business Owners To Soon Feel Effects Of Shutdown
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Congresswoman Louise Slaughter said that Democrats have done what they can do, and will not concede.

"I don't know if we have anything else to offer. On our side, we've done what we can do. What their offer is is kill health care. We're not going to do that," said Rep. Slaughter, D-25th District.

Rochester: Small Business Owners To Soon Feel Effects Of Shutdown
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Monroe County leaders say if the shutdown continues, it will have a ripple effect, hitting the state first, then the county.

"Obviously, the county has a lot of programs and services that are tied directly to the federal government. So, you may see something as simple as Medicaid reimbursement being slowed down or even stopped. A lot of the grants that we're waiting for will not be processed but, I really thnk it depends on the length of time the government is actually shut down," said County Executive Maggie Brooks, R-Monroe County.

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