Small Businesses in California, Texas, New York, Florida and Ohio Will Be Hurt the Most by Government Shutdown

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Jan 15, 2019, 11:30 ET

NEW YORK, Jan. 15, 2019 /PRNewswire/ -- Small businesses in California, Texas, New York, Florida and Ohio will be hurt the most by the longest government shutdown in U.S. history, according to a ValuePenguin.com study.

The government shutdown, currently in its 25^th day, has put a hold on all Small Business Administration (SBA) activities, including the processing of SBA 7(a) loans, a key source of funding for thousands of small businesses across the country. With zero SBA loans being processed at the moment, the backlog of companies waiting for SBA funding is growing - and could take months to clear in the aftermath of the shutdown - hurting small businesses for far longer than anticipated.

To measure and rank states whose small businesses would be most affected by the current shutdown, ValuePenguin analysts looked at the number of SBA 7(a) loans issued, the cumulative sum of the loans issued and the total number of jobs supported by 7(a) loans since 2010.

Key findings

Small businesses in California, Texas, New York, Florida, Ohio, Michigan, Illinois, Georgia, Pennsylvania and Minnesota will be hurt the most by the shutdown. Historically, these states have the largest number of SBA 7(a) loans approved, and cumulatively the largest sum of loans issued.
Additionally, potential job losses will also be the highest in California, Texas, New York, Florida, Ohio, Michigan, Illinois, Georgia, Pennsylvania and Minnesota because of the huge volume of residents employed by SBA funding dependent small businesses in these states.
Small businesses in Wyoming, South Dakota, West Virginia, Delaware, Alaska, Vermont, North Dakota, Hawaii, Montana and Maine are least affected by the shutdown, due to the very small number of small businesses here who rely on SBA loans.
Since 2010 the Small Business Administration has issued over $177 billion in funding, by approving 472,000 7(a) loans. These loans have led to the creation of over five million jobs across the country.

To view the full report, visit: https://www.valuepenguin.com/states-these-states-are-most-likely-be-hurt-government-shutdown.

How Will the Shutdown Hurt Small Businesses in Your State?
State	Overall Rank	Approved Loans Rank	Number of Loans Issued Rank	Jobs Supported Rank
California	1	1	1	1
Texas	2	2	2	2
New York	3	5	3	3
Florida	4	3	5	4
Ohio	5	7	4	5
Michigan	6	9	6	6
Illinois	6	6	8	7
Georgia	8	4	12	9
Pennsylvania	9	11	9	10
Minnesota	10	16	10	8
Wisconsin	11	13	11	11
Washington	12	8	14	14
New Jersey	13	10	13	16
Massachusetts	14	21	7	12
Colorado	15	12	15	15
Arizona	16	15	18	13
Indiana	17	17	16	18
Utah	18	19	17	17
North Carolina	18	14	19	20
Missouri	20	18	20	19
Virginia	21	20	21	21
Oregon	22	22	22	23
Maryland	23	23	23	22
Connecticut	24	27	24	25
Tennessee	25	24	29	26
Oklahoma	26	26	30	24
Iowa	27	33	31	27
Kansas	27	31	32	28
Kentucky	27	35	27	29
Louisiana	30	29	33	30
Idaho	31	36	25	33
Mississippi	32	30	28	37
South Carolina	33	25	36	35
Alabama	34	28	35	34
Nevada	35	32	34	32
New Hampshire	36	40	26	36
Nebraska	37	37	37	31
Rhode Island	38	41	38	38
Arkansas	38	34	42	41
New Mexico	40	38	43	39
Maine	41	42	39	40
Montana	42	39	41	42
Hawaii	43	50	40	43
North Dakota	44	45	45	45
Vermont	45	48	44	44
Alaska	46	43	49	46
Delaware	47	44	47	48
West Virginia	48	47	46	47
South Dakota	49	46	48	49
Wyoming	50	49	50	50

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SOURCE ValuePenguin