Local businesses feel effects of government shutdown - WECT TV6-WECT.com:News, weather & sports Wilmington, NC

Local businesses feel effects of government shutdown

Posted: Updated:
Local businesses are waiting to hear the status of applications for federally backed loans. Local businesses are waiting to hear the status of applications for federally backed loans.

WILMINGTON, NC (WECT) – As the partial federal government shutdown enters a second week, some area businesses are feeling the effects.

About half a dozen businesses that are clients of UNCW's Small Business and Technology Development Center are waiting to hear the status of nearly $4 million in federally-backed loans, said Fran Scarlett, the center's regional director.

The Small Business Administration isn't processing the loan applications during the government shutdown.

Scarlett said the applicants are established businesses that need the loans for expansion or working capital.

SBA loans are often favorable for small businesses because they require borrowers to put less money down. Also, the credit requirements for SBA loans aren't as stringent as traditional commercial loans.

According to Scarlett, the delay in being approved for loans could cause businesses to put off hiring additional workers or buying new equipment.

She said another significant impact of the government shutdown is e-verify - the federal government website that employers use to check the immigration status of job applicants.

Copyright 2013 WECT. All rights reserved. 

Powered by WorldNow