Sen. Shaheen warns of economic impact of shutdown
U.S. Sen. Jeanne Shaheen, D-NH, warned Sunday that the federal government shutdown is having an adverse impact on business in the Granite State by crippling cash flow and hampering investment.
As the Senate met in a rare Sunday session to tackle the shutdown of some federal installations and services caused by the failure of Congress to authorize a new spending bill, Shaheen addressed her colleagues about the impact of the shutdown on New Hampshire's economy.
"There is no doubt that this is having an enormous impact in New Hampshire, on small businesses, on families and that's affecting economic activity," Shaheen said. The state's senior senator said she recently received a call from the head of a Portsmouth business, GlobaFone, a satellite phone distributor. The company is approved by the General Services Administration to sell to government agencies.
"He is frustrated because his government contracts are not being paid, his cash flow is uncertain and he's not sure of his line of credit," Shaheen said.
She also noted another New Hampshire company, Nanocomp Technologies, Inc. of Merrimack, a small innovation-based companies that relies on receiving payment on its Defense Department contracts to sustain its growth.
Expansion and start-ups are also threatened by the shutdown, Shaheen said, because companies are finding delays in approval of Small Business Administration loans that are not being processed.
"According to the Granite State Development Corp., which is one of the largest SBA lenders in New Hampshire, about 20 loans have been put on hold because of this shutdown," Shaheen said. "We've also heard from some of our community banks which provide for SBA loans that those loans are being held up as well."
Shaheen said the resulting slowdown in economic activity resulting from the shutdown threatens to damage the economic recovery in New Hampshire and said Congressional failure to raise the debt ceiling would have an "even more disastrous" impact.