News Summary
The ongoing federal government shutdown is impacting small businesses in South Carolina, blocking approximately $11 million in loans weekly from the Small Business Administration. This has left thousands unable to secure essential financing for operations and growth, affecting employment in the state. Furthermore, federal employees and low-income families relying on food assistance face mounting challenges as local advocacy for business tax relief continues amidst this crisis.
South Carolina is feeling the effects of an ongoing federal government shutdown that has now lasted for 22 days, resulting in an estimated $11 million in weekly loans for small businesses being blocked. The Small Business Administration (SBA) has indicated that around 19 guaranteed small business loans are not being approved each week, significantly impacting the funding available for local entrepreneurs.
Due to the shutdown, thousands of small businesses across South Carolina are unable to secure essential financing necessary for their operations and growth. This impasse persists until Congress passes a budget through the Senate, and the uncertainty continues to strain small business owners looking to invest in their companies or manage day-to-day operations.
As part of this nationwide shutdown, several vital services and programs have been halted, jeopardizing the pay of federal employees and military members. In South Carolina, more than 530,000 small businesses rely heavily on these funding opportunities, with approximately 98% of them employing fewer than 20 people. Small businesses account for nearly 43% of all employment in the state, underscoring their critical role in the local economy.
While the federal shutdown poses immediate challenges, business leaders in South Carolina are actively advocating for changes to the state’s Business Personal Property Tax, which they claim stifles growth. Proposed tax relief measures are under consideration to alleviate the burden on small business owners, including possible exemptions and legislation aimed at allowing businesses to write off equipment costs more quickly, aligning with federal guidelines.
Aside from financial difficulties for small businesses, the South Carolina Department of Social Services (SCDSS) has issued warnings to over 260,000 households that rely on the federal Supplemental Nutrition Assistance Program (SNAP). With the shutdown ongoing, families are advised to budget cautiously and seek support from local food banks in order to weather the difficulties.
In response to the urgent needs of federal employees affected by the shutdown, the Greenville-Spartanburg International Airport (GSP) has begun seeking donations of food and household items. The initiative aims to support those impacted, as many federal workers face uncertainty regarding their paychecks due to the closure of government programs.
The current SBA Administrator has cited an optimistic outlook for small businesses in the state, crediting the previous administration’s agenda for enhancing engagement with over 85,000 job creators and facilitating $45 billion in federally backed loans in prior years. The anticipated revival of funding opportunities through the SBA remains crucial for maintaining this momentum.
Against this backdrop, the SBA recently appointed a new district director for South Carolina, Melissa Lindler. Lindler brings significant experience in economic development and public administration, which could be instrumental in navigating the current economic landscape—especially as small business owners await resolution in Congress to resume loan approvals and the critical services that support their operations.
As the federal government shutdown continues, its impact is being felt on multiple levels throughout South Carolina, affecting not only small businesses but also the welfare of many citizens. The full extent of the repercussions will depend on how quickly lawmakers can agree on a budget to restore essential funding and support for the state’s economy.
Deeper Dive: News & Info About This Topic
- Spectrum Local News: South Carolina News on Small Business Loans
- Wikipedia: Small Business
- Live 5 News: Growth of Small Business Community in South Carolina
- Google Search: Small Business South Carolina 2025
- WLTX: Proposed Changes to Business Personal Property Tax in SC
- Google Scholar: South Carolina Business Tax Changes
- Columbia Business Report: Appointment of South Carolina SBA Director
- Encyclopedia Britannica: Small Business
- Greenville Business Magazine: SBA Relief for SC Small Businesses
- Google News: South Carolina Small Business Relief
Author: STAFF HERE FLORENCE WRITER
The FLORENCE STAFF WRITER represents the experienced team at HEREFlorence.com, your go-to source for actionable local news and information in Florence, Florence County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Florence Festival of Lights, Pee Dee Pride, and agricultural expos at the Florence Center. Our coverage extends to key organizations like the Florence Regional Chamber of Commerce and the Pee Dee Area Council of Governments, plus leading businesses in healthcare and retail that power the local economy such as McLeod Health and Pee Dee Electric Cooperative. As part of the broader HERE network, including HERECharleston.com, HEREColumbia.com, HEREGreenville.com, and HEREHiltonHead.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.
