"Each weekday the government is shut down, hundreds of small businesses would see their 7(a) and 504 loan applications fail to move forward. That means extreme House Republicans would deny more than $100 million in critical financing to American small businesses every day," the statement read.
Americans filed more than 10.5 million applications to start new small businesses during the first two years of the Biden administration. The White House said a halt in financing would make it harder for small businesses to access federal contracting, stop them from buying critical equipment or force them to take high-interest loans.
The US Congress has one working day left to coordinate a stopgap funding measure before the end of the month to avoid a government shutdown. The Senate and House of Representatives have both proposed short-term measures, but there are discrepancies between the two pieces of legislation.
If funding legislation is not enacted before October 1, federal agencies will be forced to stop all nonessential work and not send any paychecks until the shutdown ends. This is also true for the Small Business Administration, an authority in charge of processing new business loans for small businesses.