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BizReport : Law & Regulation : January 21, 2019

Report: SMBs hopeful about 2019, shutdown could change outlook

The US government is entering it's fifth week of shutdown, but according to one new report Small Businesses are optimistic about their 2019 potential. In fact, researchers found that 63% of SMB owners believe the current political environment in the US will have a positive impact on their 2019 revenue lines.

by Kristina Knight

Just over half (56%) believe their elected officials, specifically, will help their 2019 prospects. In all, just over two-thirds (67%) of SMB owners believe their revenue will increase over the coming 12 months.

SMB owners' biggest hurdle? Finding new employees. Researchers with Manta and Insureon found that more than one-third (36%) of SMB owners feel increasing revenue will be their biggest issue for the coming year. 2 in 5 feel finding qualified workers will be their biggest challenge.

But, focusing solely on the shutdown, which enters its thirty-second day today, Insureon notes that every day the government remains shut down the impact for small businesses increases.

"While the government shutdown may not seem like it would have a big impact on small businesses across the country, it's actually affecting them in a major way. Since the end of December, thousands of small and medium-sized businesses have not been able to get their 2019 loans processed, due to the Small Business Administration (SBA) ceasing its operations due to the shutdown. That's an estimated 300 SBA loans a day that aren't being processed - leaving many small business owners unable to fund or grow their businesses right now," said Jeff Somers, President, Insureon.

Somers notes that SMBs can get business interruption insurance to help cover the costs of rent, employee wages and loan payments, which they may need help with if they're still waiting on loans from the currently-shut-down Small Business Administration.

Tags: 2019 US government shutdown, Insureon, small business, Small Business Administration, SMB trends

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