Government shutdown: Engel warns of economic damage as small business loans frozen


The government shutdown has frozen Small Business Administration loans that provide millions in assistance to local companies, according to a release from U.S. Rep. Eliot Engel.

Last year, the agency approved an average of $126,417 in loans a day to small businesses throughout the 16th Congressional District, totaling $47,075,800 in 2012, he said.

“With the shutdown the SBA is now approving zero general small business loans and real estate and equipment loans.” he said in a statement. “This not only short circuits business and our economy, it will also have a negative effect on businesses which sought to expand, but now have to wait to catch up, assuming they will still seek to expand when the shutdown ends.”


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