ICYMI: National Survey Shows Small Business Owners Fear Default Would Negatively Impact Businesses

A survey released today by Small Business for America's Future revealed "that respondents have deep concerns over the potential fallout from the ongoing debt ceiling debate."

According to the survey, "76% of respondents believe a debt ceiling default would negatively impact their businesses, with 61% fearing a major negative impact."

As a small business owner in Alameda County, California put it, "The debt ceiling debate is just the latest example of how politics can have a real impact on small businesses. It's time for politicians in Washington to recognize the impact a default will have on Main Street and raise the debt ceiling."

During the Biden-Harris Administration, nearly 12 million Americans have applied to start a new business. But House Republicans are threatening a catastrophic default that would hurt small business across the country and undo the historic economic progress we've made under the President's leadership.

Read the press release below and find the full survey here:

Small Business Group Shares Survey on Owner Debt Ceiling Worries Prior to Co-Chair's Senate Testimony
SBAF Co-Chair Shaundell Newsome to address Senators on Tuesday, advocating for resolution and emphasizing entrepreneur concerns as national survey uncovers significant apprehension among small business owners regarding potential consequences of the ongoing debt ceiling debate

Washington, D.C., May 15, 2023—A national survey of 1,073 small business owners in Small Business for America's Future's network conducted between May 5-8, 2023 reveals that respondents have deep concerns over the potential fallout from the ongoing debt ceiling debate. The majority of small business owners believe that a failure to raise the debt ceiling could lead to a recession, stalling the progress made in recovering from the pandemic. Small business owners want decisive Congressional action to avoid default.
"Small businesses are the backbone of our economy, and Congress must listen to their concerns and act responsibly to settle the debt limit debate," said Shaundell Newsome, a small business owner and Co-Chair of Small Business for America's Future who will testify on the issue before the Senate Committee on Small Business and Entrepreneurship on Tuesday. "The uncertainty surrounding the debt ceiling is causing unnecessary stress and anxiety for small business owners who are trying to recover from the pandemic and strengthen our economy."

Key findings from the survey include:

1. 76% of respondents believe a debt ceiling default would negatively impact their businesses, with 61% fearing a major negative impact
2. 59% of small business owners said a default could result in higher interest rates, difficulty obtaining credit, and the loss of customers
3. 66% of small business owners believe that a failure to raise the debt ceiling and prevent a default could lead to a recession
4. 67% of respondents are concerned that a failure to raise the debt ceiling could stall the progress made in recovering from the pandemic
5. 82% agree (68% strongly) that Congress should address spending during the federal budgeting process, allowing for targeted discussions without jeopardizing the economy
6. 62% of small business owners want Congress to either raise the debt ceiling by passing a clean bill or temporarily lift the debt ceiling while continuing negotiations to avoid defaulting on the nation's debt

"Our survey results show that small business owners across the nation are deeply concerned about the potential impact of the debt ceiling debate on their businesses and the overall economy," Newsome said. "It's time for Congress to take these concerns seriously and work together to resolve this issue for the benefit of our nation's entrepreneurs and our economic recovery."

Newsome, the recent Small Business Administration Nevada Entrepreneurial Spirit Award winner, will be testifying about the impact of the debt ceiling on small businesses before the Senate Committee on Small Business and Entrepreneurship at 3:30 pm on Tuesday, May 16.

View the full survey report here.

What small business owners are saying about the debt ceiling:

"The debt ceiling debate is just the latest example of how politics can have a real impact on small businesses. It's time for politicians in Washington to recognize the impact a default will have on Main Street and raise the debt ceiling."
Elizabeth Vecchiarelli
Preserved
Alameda County, CA

"Small businesses are often the ones who feel the most pain when politicians play games with the debt ceiling. It's frustrating to see them using our livelihoods as leverage in their political battles. We need our leaders to put aside their differences and do what's right for the country and for Main Street businesses like mine.  If the debt ceiling is not raised now, the cashflow repercussions on all small businesses will be incalculable beginning next month, so please think about the thousands of small businesses in your various states."
Ebbiteanga Abili
Deltech Engineering, Inc.
Anaheim, CA

"As a small business owner, I urge lawmakers to put aside political differences and focus on passing a clean debt ceiling. A default would have disastrous consequences for our economy, especially for small businesses that are still recovering from the pandemic. In the construction world, we are still seeing issues of long lead times and lack of construction workers to complete projects that are funded and ready to spur further growth of our economy. I fear that a default would cause more cost increases in materials, extended lead time for materials and stall economic growth. I urge Congress to pass a clean debt ceiling to prevent unnecessary harm to our nation's entrepreneurs."
Richard Pfeiffer
Quiroga-Pfeiffer Engineering Corp.
Albuquerque, New Mexico

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To schedule an interview with SBAF Co-chair Shaundell Newsome or other small business owners contact: Janel Knight Trulear at janel@emccommunications.com or (617) 875-6581.