Columbia, South Carolina, October 23, 2025
News Summary
The federal government shutdown is severely impacting small businesses in South Carolina, blocking about 19 guaranteed loans weekly, translating to $11 million in funding. The continued stalemate in Congress is forcing many businesses to cut hours or lay off staff. With over 99% of South Carolina’s businesses classified as small, the shutdown could have lasting effects on the local economy and the livelihood of thousands of families relying on federal programs like SNAP.
Columbia, South Carolina – The ongoing federal government shutdown is creating significant obstacles for small businesses in South Carolina, as new data from the Small Business Administration (SBA) indicates that approximately 19 guaranteed small business loans are being blocked weekly due to the shutdown. This blockade represents roughly $11 million in approved SBA loans each week.
The shutdown has now extended for 22 days and is expected to continue until Congress successfully passes a budget through the Senate. As a result, many small businesses in South Carolina are faced with the prospect of reducing operational hours, laying off employees, and even considering closures due to a lack of available funding. The shutdown is reportedly stifling both momentum and capital that are critical for the survival of these businesses.
Before the shutdown, small business optimism in the U.S. reached a seven-year high, with record support for around 85,000 job creators through $45 billion in federally backed loans. This situation has quickly turned for the worse, prompting the SBA administrator to express concerns about the long-term impact of the shutdown on the state’s economy.
The disruption caused by the shutdown also affects over 260,000 households in South Carolina that rely on the federal Supplemental Nutrition Assistance Program (SNAP). These households have been advised to budget carefully and consider utilizing local food banks if the shutdown persists. In light of these challenges, the Greenville-Spartanburg International Airport (GSP) has initiated a food and household item donation drive to support federal partners impacted by the shutdown.
Federal employees and military service members are also experiencing the effects of the shutdown, with possible delays or missed paychecks. In the state, over 99% of businesses are categorized as small (500 or fewer employees), highlighting the crucial role that small businesses play in the local economy.
The SBA has a longstanding history of assisting small businesses in South Carolina, providing loans for various needs, including operational capital, debt refinancing, business acquisitions, and startup costs. These loans generally range from $500 to $5.5 million, with interest rates set as fixed or variable based on agreements between lenders and borrowers.
Specific types of loans offered by the SBA include 7(a) loans, which may be guaranteed up to 85% for amounts less than $150,000, and 504 loans, which are often utilized for long-term financing of major fixed assets. Typically, a 504 loan involves funding from a bank for half the loan amount, with an SBA-backed community development corporation contributing 40%, and the borrower covering at least 10%.
In fiscal year 2024, the SBA approved over 76,000 loans, totaling over $37 billion across both the 7(a) and 504 programs. The agency has recently undergone significant reorganization plans aiming to reduce its workforce by 43% to eliminate unnecessary spending. Furthermore, the SBA has paused its Community Advantage program, indicating a shift in its lending policies under the current administration.
Potential legislative changes could also increase the maximum size of certain SBA loans for manufacturers, doubling the limit from $5 million to $10 million. Despite these challenges, the SBA remains committed to supporting small businesses and providing essential assistance during periods of economic recovery and emergencies.
FAQs
What is the impact of the federal government shutdown on small business loans in South Carolina?
The ongoing federal government shutdown is blocking approximately 19 guaranteed small business loans each week, representing roughly $11 million in approved SBA loans in South Carolina.
How long has the federal government shutdown been ongoing?
The federal government shutdown has lasted for 22 days and will continue until Congress passes a budget through the Senate.
What challenges are small businesses in South Carolina facing due to the shutdown?
Thousands of small businesses in South Carolina may start reducing hours, laying off workers, and contemplating closures due to lack of funding associated with the SBA loan approvals being blocked.
What percentage of businesses in South Carolina are classified as small?
Over 99% of businesses in South Carolina are classified as small, having 500 or fewer employees.
Key Features of SBA Loans in South Carolina
| Feature | Description |
|---|---|
| Loan Amounts | $500 to $5.5 million |
| Interest Rates | Fixed or Variable |
| 7(a) Loans | Guaranteed up to 85% for amounts less than $150,000 |
| 504 Loans | Used for long-term financing on major fixed assets |
| Borrower Contribution | 10% minimum for 504 loans |
| Fiscal Year 2024 Approvals | 76,000 loans totaling over $37 billion |
Deeper Dive: News & Info About This Topic
HERE Resources
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South Carolina’s Focus on Supporting Small Businesses
South Carolina Gears Up for Small Business Saturday
Spotlight on Greenville’s Small Business Resilience
Travelers Rest Introduces Bunny Hunt and SBA Loan Aid
South Carolina Residents Get More Time for Disaster Loans
Columbia, South Carolina Celebrates Small Business Saturday
Judges Intervene After Federal Grant Freeze Affects Nonprofits
Charleston Businesses Alarmed by Credit Card Competition Act
Additional Resources
- Spectrum Local News: Small Business Loan Impact
- Wikipedia: Small Business
- Greenville Business Magazine: SBA Relief for Small Businesses
- Google Search: Small Business Administration
- Banking Dive: SBA Lending Acquisition
- Encyclopedia Britannica: Small Business
- WRDW: SBA Relief for Small Businesses After Hurricane
Author: STAFF HERE GREENVILLE
The HERE Greenville Staff Writers are a collaborative team of journalists, editors, and local contributors passionate about delivering accurate, timely information to the Greenville community. As part of the HEREcity.com Network, which powers over 100 U.S. city sites including HEREcolumbia.com, our staff draws on collective experience in South Carolina journalism to cover everything from business sales and real estate developments to dining deals and community initiatives. Our Expertise and Background Local Roots in Greenville Our team includes lifelong Greenville residents and SC natives with deep knowledge of the area’s history, economy, and culture. We’ve covered key events like the recent sales in the Heritage Historic District 17 , Greenville’s textile and railroad heritage 2 , and growth in local education sectors (e.g., Greenville Technical College programs) 27 . Collective Experience With over 50 combined years in journalism, our staff has backgrounds in print, digital media, and community reporting. We prioritize fact-based stories, drawing from sources like the Greenville Chamber of Commerce, city government records, and on-the-ground interviews. Commitment to Quality Every article is a group effort, involving research, editing, and verification to ensure reliability. We adhere to journalistic standards, citing credible sources and updating content as new details emerge.
