WASHINGTON, D.C. — The ongoing federal government shutdown is costing Pennsylvania small businesses roughly $26 million in blocked funding each week, according to a new analysis released by the U.S. Small Business Administration.
The SBA’s state-by-state report, published Tuesday, outlines the financial toll of the lapse in federal appropriations that has halted the agency’s core 7(a) and 504 lending programs. Nationwide, about 320 small businesses each day are unable to secure $170 million in SBA-backed loans — funding the agency says is critical for Main Street businesses that drive local employment and investment.
In Pennsylvania, the analysis shows that 54 small business loans, totaling $25,961,288, are being delayed each week the shutdown continues. The freeze affects entrepreneurs who depend on SBA-guaranteed financing to open or expand operations, purchase equipment, or cover payroll.
The SBA noted that its loan programs are funded entirely through lender fees and operate at zero cost to taxpayers. Before the shutdown began, the agency had guaranteed a record 84,400 loans worth $45 billion for fiscal year 2025.
“Thanks to President Trump’s agenda to reduce taxes, regulation and unfair trade deals, small business optimism is at seven-year highs,” said SBA Administrator Kelly Loeffler. “Senate Democrats have decided to cut off that momentum and that capital for Main Street, in favor of growing government spending by $1.5 trillion and blocking a clean funding bill to reopen the government.”
Loeffler warned that with SBA’s lending programs shuttered, thousands of small businesses are now unable to access financing needed to stay afloat. She said many could soon face reduced hours, layoffs, or permanent closure if the impasse continues.
The SBA report underscores that the shutdown’s economic impact extends far beyond Washington, hitting local economies in all 50 states. Pennsylvania ranks among the top 10 states most affected by the freeze in weekly SBA loan approvals.
For updates or to access disaster assistance resources still available during the shutdown, business owners can visit sba.gov/disaster.
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