AmiSight 10/15: The Shutdown’s Ripple Effect on Main Street

Three weeks into the U.S. government shutdown, small businesses are feeling the pain. Federal contracts are frozen, loans are stalled, and cash flow is drying up.

A Florida marketing firm had to lay off five employees after a stop-work order. A California medical-device company postponed a major spinoff because the SEC couldn’t process paperwork. An electrical subcontractor in Minnesota is overstaffing jobs just to keep workers employed.

The Wall Street Journal reports that economists warn the shutdown could shave 0.2% off U.S. growth for every week it lasts—losses that small firms can’t easily absorb. Even retailers and service providers not tied to federal contracts are seeing slower sales as consumer confidence dips.

Bottom line: The longer Washington stays stuck, the more Main Street businesses will feel the squeeze. For many entrepreneurs, this isn’t politics—it’s survival.

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