The federal government shutdown that began at midnight on October 1 is already being felt by small business owners across the Midlands. While essential services continue, several key programs through the U.S. Small Business Administration (SBA) — a vital resource for local entrepreneurs — have been paused until funding is restored.
Before the shutdown, the SBA reported a record lending year for Fiscal Year 2025, approving 84,400 loans totaling $44.8 billion nationwide. Now, each day the government remains closed, an estimated 320 small businesses lose access to $170 million in SBA-guaranteed funding, creating uncertainty for employers, workers, and communities across South Carolina.
Local Impacts
Among the affected services are:
▪ New SBA Loans: Approval of new 7(a) and 504 loans has been temporarily halted, cutting off capital for small businesses looking to expand or purchase equipment.
▪ SBA Support Centers: Regional and district SBA offices — including those serving Columbia, Lexington, and surrounding counties — are operating at reduced capacity or are temporarily closed.
▪ Federal Contracting: Processing of new small business contracts and certifications is on hold.
▪ Trade and Export Assistance: Export counseling and international trade support through SBA partner programs are paused.
What’s Still Running
The SBA’s Office of Disaster Recovery and Resilience remains operational. That office continues processing and servicing disaster loans for businesses, homeowners, and renters affected by federally declared disasters — including storm-related assistance in South Carolina.
Local business owners who need help navigating SBA programs during the shutdown can contact the South Carolina District Office at 803-765-5377 or visit www.sba.gov for updates.
🟦 SIDEBAR: Resources for Midlands Small Businesses During the Shutdown
South Carolina Small Business Development Centers (SBDC)
• Free counseling and financing guidance
• Columbia Office: (803) 777-4907
• Website: www.scsbdc.com
Columbia Chamber of Commerce
• Updates on local business impacts and resources
• Phone: (803) 733-1110
• Website: www.columbiachamber.com
U.S. Small Business Administration – South Carolina District Office
• Main line: (803) 765-5377
• Website: www.sba.gov
Richland County Office of Small Business Opportunity
• Local certification and contracting guidance
• Phone: (803) 576-1540
• Website: www.richlandcountysc.gov
Tip for Local Business Owners:
Stay in close contact with your lender or SBDC advisor for real-time updates on SBA loan processing and reopening timelines.