small businesses --> The shutdown of the U.S. government is making it tough for small federal contractors like Stowers is tapping his company's line of credit because he doesn't know when it will be paid for work it's done for the
"I'm juggling funds now, just to keep afloat," says Stowers, CEO of
Some small contractors have had to lay off employees because there's no work for them while the government is shut down. Others are dipping into credit lines because they're not getting paid for work they've done, or for goods they've shipped. Many companies face longer waits to get contracts approved because federal employees aren't processing previously submitted bids.
Stowers will have to pay interest charges on his credit line and has no idea yet how much that will cost. He also had to cancel trips for staffers who were supposed to fly to
Small businesses are likely to suffer more than larger ones from the shutdown because they don't have the financial cushions big companies have.
"Their margins are smaller and their cash flow is slimmer, so any type of delay is going to put them into jeopardy," says
The government owes
"That's the hard part, explaining it to employees," Petrazzuolo says.
International Code Design, which gets more than half of its revenue from the government, can't work on projects for
"Everything we were doing came to a standstill," says
Equally frustrating for Jackson is that the company submitted bids for new work by an
Even before the shutdown began, small businesses expected it to hurt. In a survey of small companies taken in August and September by
There are other challenges. With
Valdizan, who owns Joint Technology Solution in
The impact of the shutdown will continue for
Enslen, who has three full-time staffers and 25 freelancers, gets about a quarter of her revenue from government work. "Let's hope that everyone gets rolling again before we have troubles with payroll," she says.
The shutdown of the U.S. government is making it tough for small federal contractors like
Stowers is tapping his company's line of credit because he doesn't know when it will be paid for work it's done for the