Note: This article is a summary to help you understand the current situation. Palm takes no political position—we’re here to provide clear, useful information so you can stay informed and focused on running your business.

Why the Government shut down

On October 1, 2025, the federal government shut down after lawmakers failed to reach a funding agreement before the deadline. Disagreements over health care, spending, and how long to extend government funding left Congress at a standstill. Until a resolution is reached, many federal agencies are either closed or operating with limited staff.

What this means for your business

1. SBA Loans
Most SBA programs—including 7(a), 504, and microloans—are paused. New loan applications won’t move forward, and disbursements may be delayed. During the 2018–2019 shutdown, billions in loans were stalled, slowing expansions, real estate deals, and hiring.

2. Federal Contracts
New contract awards and modifications are frozen. Even existing contracts may face stop-work orders or delayed payments if oversight staff are furloughed.

3. Regulation & Market Oversight
Agencies like the SEC and CFTC are scaling back, meaning filings, disclosures, and market oversight are delayed until funding is restored.

4. Federal Services
Some programs (like Social Security and USPS) continue, but others—such as HUD programs, student loan services, and new federal grants—are slowed or suspended.

What you can do

• Prepare for delays in loans, contracts, or payments tied to federal processes.
• Stay on top of state obligations. Compliance deadlines at the state level haven’t changed, and Palm can help you track and file on time.
• Keep informed. Shutdowns sometimes last days, sometimes weeks. Planning ahead reduces stress and disruption.

A final word

Moments like this can feel uncertain, especially when your business depends on clarity and timely decisions. While Washington works through its debates, Palm’s focus remains steady: helping you keep your business identity secure and your compliance on track.

We’ll continue to share updates as the situation evolves. In the meantime, know that you’re not alone—Palm is here to support you through the noise.

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