SBA shutdown hurts women entrepreneurs

The U.S. government shutdown is particularly difficult for women entrepreneurs who depend on Small Business Administration loans to sustain their businesses. About 28% of SBA loans in 2023 went to companies owned by women, but that number rose rapidly during the Biden administration, when SBA-backed 504 and 7(a) loans to women entrepreneurs skyrocketed by 70% to $5.1 billion that same year. The SBA says it plans to furlough almost a quarter of its workforce during the shutdown, and business loans are frozen until the government reopens. Statistically, women entrepreneurs are less likely to be approved for large business loans or receive the full amount requested, making SBA loans vitally important to sustaining their businesses. The shutdown began Oct. 1 when Congress failed to pass funding legislation for 2026. The most recent government shutdown in 2019 lasted 35 days.