Funding Small Businesses During Shutdown Act
Summary
The "Funding Small Businesses During Shutdown Act" (H.R. 5568) aims to ensure continued appropriations for specific Small Business Administration (SBA) programs during government shutdowns. It allocates funds for servicing loans made under Section 7(a) and 7(m) of the Small Business Act, as well as Title V of the Small Business Investment Act of 1958. The bill appropriates funds for fiscal year 2026 during any lapse in discretionary appropriations related to the SBA.
Expected Effects
If enacted, this bill would allow the SBA to continue servicing existing loans to small businesses during government shutdowns. This would prevent disruptions in funding and support for small businesses that rely on these loans. The Act ensures that critical SBA programs can continue operating, mitigating potential negative impacts on small businesses during periods of government gridlock.
Potential Benefits
- Ensures continuity of SBA loan servicing during government shutdowns.
- Provides financial stability for small businesses reliant on SBA loans.
- Reduces economic uncertainty for small businesses during periods of political instability.
- Supports job creation and economic growth by maintaining access to capital for small businesses.
- Prevents disruptions in the flow of capital to small businesses, which are vital for the economy.
Most Benefited Areas:
Potential Disadvantages
- Increases government spending, potentially adding to the national debt.
- May create a precedent for ad-hoc funding measures during government shutdowns.
- Could be perceived as a temporary fix rather than a comprehensive solution to government funding issues.
- The specific allocation amounts may not be sufficient to fully cover all needs during an extended shutdown.
- Potential for inefficient allocation of funds if the shutdown duration is shorter than anticipated.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the constitutional power of Congress to appropriate funds, as outlined in Article I, Section 8, Clause 1 of the U.S. Constitution, which grants Congress the power to lay and collect taxes, duties, imposts, and excises, to pay the debts and provide for the common defense and general welfare of the United States. The bill specifies the amounts to be appropriated and the purposes for which they are intended, which is consistent with Congress's spending authority. However, the necessity of such a bill highlights potential issues with the regular appropriations process and the ability of Congress to fulfill its duties.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).