8 Things to Know Before a Government Shutdown

When people hear the words government shutdown, they may think of political antics happening in a faraway place called Washington DC, a place well disconnected from our immediate, local reality. And by now we’ve all seen this game of thrones played many times before—the midnight deadlines, the performative antics, the cable-news chyrons adorned with countdown clocks. We can all be forgiven for growing desensitized or disinterested in watching these tiresome spectacles unfold. But for solopreneurs and microbusiness owners, a shutdown isn’t a TV show we can just tune out. It’s potentially a direct hit to your cash flow, to your contracting cycles, to your customer’s ability to spend (or pay), and even to community safety. Worse still is the fact that in late 2025, the timing is particularly fraught: Washington is again wrestling with stopgap funding while the Atlantic hurricane season seems to kicking up a notch, reminding us of the huge stakes in this political game of chicken.

Though the temptation for me to wax political is strong, this article isn’t really about scoring political points (well, maybe just a few). Suffice it to say that with Republicans running the White House, the House, and the Senate (and the Supreme Court, if we’re being honest) the bulk of the blame for a government shutdown will rightfully be placed at the Republicans’s feet. Instead of pouring water on the fire, Trump poured gasoline by cancelling a meeting last week with high ranking Democrats and by telling the government agencies he leads to prepare for massive layoffs. In responding in this way, Trump is signaling that he has made the executive decision to take America to the brink of chaos once more.

Important note: As of this writing, the meeting with Democrats and Trump seems to be back on, scheduled for Monday, September 29th. Stay tuned.

Meanwhile, the Democrats’ line in the sand—extending the enhanced Affordable Care Act tax credits is the right thing to do because it has tangible, near-term benefits for poor and working-class people, in Blue or Red areas alike. If those subsidies expire at fiscal year-end, millions of people will pay more for coverage in 2026; KFF has quantified the jump and even built a calculator to show by how much. Framing this as “protecting vulnerable people” isn’t political spin by the Democrats; it’s anchored in real-world math.

Though there is still time for our leaders to avert disaster (and I truly hope they do) we need to prepare for the worst.

The general strategic response

The best way to deal with all this is to think like a pilot entering a patch of turbulence: don’t let the engine stall (protect your cash), reduce drag (overhead costs), simplify choices (offers and contracts), and stay calm enough to keep the plane in the air as you actively monitor the conditions you’re flying in. From a practical standpoint, that means:

• Putting cash first: extend your cushion now.
• Marketing/sales agility: Don’t let go of the marketing throttle, consider designing shorter, lower-commitment, faster-ROI offers.
• Operational flexibility: assume some inspections, permits, and contracting steps to slow or stall altogether.
• Local resilience: bolster private capacity (insurance, partners, vendors, networks) in case federal relief is slower than you need.

With that frame in mind, here are 8 possible moves:

1. Prioritize cash

During a government shutdown, things like new SBA 7(a) and 504 loans may not be processed or approved—delegated lenders can’t navigate around that. And while SBA Disaster Loans generally continue because of their funding structure, they’re still subject to available appropriations and can face timing frictions.

So: strengthen your cash position if you can. Call clients and try to accelerate receivables (consider offering a modest discount for “payment this week”). Can you re-cut large projects into milestones so each deliverable triggers an invoice? Ask your bank to expand your line of credit before headlines spike risk. Trim the “nice-to-have” tech stack (extra SaaS subscriptions, lightly used tools, and premium analytics you don’t need this quarter—cut what you can). Your goal is to boost your oxygen reserves for 6–10 weeks without having to resort to heroics.

2. Look out for possible hiring and onboarding messes

In prior government shutdowns, the E-Verify system has gone offline entirely because it relies on appropriated funds, so it can become unavailable during funding lapses. Employers are still required by law to complete Form I-9 for new hires within the three-day deadline, but the unavailability of E-Verify means they cannot electronically verify employment eligibility through that system during a shutdown. So make sure you document everything!

Visa and passport operations are often fee-funded and can continue despite a shutdown, but local capacity may ebb. Be sure to build contingency start dates, and line up freelancers who can step in quickly if a W-2 hire slips a few weeks.

3. Federal contracts: prepare now for interruptions

Under the Antideficiency Act, agencies generally can’t obligate new funds during a shutdown; even funded work can stall if no authorized official is available to do common tasks like accept deliverables or approve invoices. And get this—contractors typically do not receive back pay after a shutdown ends unless Congress passes a special fix. For small businesses, that means every day down is real revenue at risk.

So, if you have a federal contract, contact your contracting officer in writing NOW. Don’t wait. Ask which Contract Line Item Number (CLINs) are fully funded, who—specifically—can accept deliverables during a shutdown, whether your invoices can still post, and how performance milestones should be treated if government personnel are unavailable. Keep a daily log of impacts. And if you’re a sub, stay real tight with your prime. And lastly, consider very seriously diversifying your client portfolio: even one private-sector client can bridge a bad week.

4. Be ready for travel and logistics hassles

Airports don’t close in a shutdown, but the system feels the strain. In 2018–19, unpaid TSA officers and air traffic controllers saw rising absences; on Jan. 25, 2019, the FAA briefly halted some flights into LaGuardia due to controller staffing. Expect longer lines, sporadic delays, and slower training/hiring pipelines if a lapse persists. Think about booking refundable fares, padding your travel itineraries, and having a “flip to virtual” clause for delivery of services if possible.

5. Customers will change behavior—meet them there

Shutdowns hit the psychology of consumers as hard as their wallets and we should be sensitive to their changing needs. After all, it will surprise no one that furloughed workers spend less; or that negative economic headlines rattle consumer confidence. You should be mindful that local economies heavily dependent on federal presence will feel it first and most strongly. In this moment of heightened fear and risk, you may want to reconsider your offerings and rely less on ambitious six-month, high-upfront price pitches and add more smaller, faster, guaranteed offers to your portfolio. Some possibilities to inspire you:

• Package starter offers under $1,000.
• Shift retainers to monthly renewal with pause/resume language.
• Focus on and emphasize 30-day ROI and add virtual fallback guarantees in case travel becomes too difficult.
• Add in fresh, more digestible, less elaborate success stories to your marketing messaging (“we cut their CAC 18% in 30 days”).

The aim with customers in turbulent economic times is to engage with them early on, reduce their sense of perceived risk, focus on tangible benefits they can enjoy quickly, while all the while carefully preserving your profit margins through product or service scope control.

6. Natural disasters + shutdown means double-jeopardy (plan for both)

For example, if Imelda strengthens into a hurricane and delivers multiple days of coastal impacts in the southeast this week (I sure hope not), those effects could intersect with a federal slowdown. The National Flood Insurance Program (NFIP) authorization is set to expire on September 30, 2025. If it lapses, new policies and renewals would halt, though claims on existing in-force policies can still continue to be processed and paid as long as FEMA has funds available. FEMA's disaster response relies on "excepted" staff during funding lapses, but the process for reimbursements and coordination with downstream entities could face challenges and delays. Therefore, relying on the normal pace of NFIP operations during a lapse is hella risky, and contingency planning around potential disruptions is advisable. This aligns with past experiences and current legislative discussions around reauthorization.

• See if you can secure or renew flood insurance policies before the authorization expires on September 30, 2025, since new policies and renewals will not be processed during a lapse.
• Consider purchasing private flood insurance as an alternative, especially in flood-prone areas, since private market options are not affected by the NFIP lapse.
• Be aware that while claims on existing NFIP policies can still be paid (as long as FEMA has funds), delays may occur, so document any damages carefully and prepare for potential processing slowdowns.
• For businesses involved in real estate or mortgage transactions, prepare for possible delays or complications due to the suspension of flood insurance requirements by lending regulators during the lapse.
• And finally, stay informed about legislative developments, as Congress may reauthorize the NFIP or pass temporary fixes; maintaining communication with insurance agents and industry groups can provide you with updates.

7. Don’t stop marketing

One of the most dangerous instincts in a downturn—or a shutdown—is to pull back on marketing. When cash gets tight, advertising, content creation, and outreach can look like easy expenses to cut. But history is clear: businesses that maintain visibility while competitors retreat emerge with stronger brands and larger market share. Studies of past recessions show that firms holding steady—or even modestly increasing—marketing activity buy what marketers and economists call “excess share of voice.” In plain terms, they stay top of mind at a discount, because the noise level is lower. For solopreneurs and microbusinesses, this doesn’t mean throwing money at every channel. It means protecting your presence in the places you already reach customers reliably—your email list, your owned content, your partnerships—while sharpening your message to emphasize value, reliability, and certainty. Prospects in a jittery market want to know you’re open, consistent, and capable of delivering. If your competitors go quiet and you keep speaking with clarity, you’ll be the one buyers remember when they’re ready to spend again.

8. Keep leading, keep selling

When buyers feel anxious, your real competition isn’t another vendor—it’s their own hesitation. Research across millions of sales conversations shows that in turbulent times, a large share of deals die not because a rival wins but because buyers decide to do nothing. They stall, overwhelmed by options, fearful of making a costly mistake, and paralyzed by uncertainty bred by the deteriorating economic climate. The way through is not to flood them with more choices or features but to simplify and remove as much risk from the decision as possible. That may mean recommending the single best option for their situation, rather than presenting a buffet. It means risk reversal tactics like offering pilots, phased commitments, or clear opt-out points so they can move forward without feeling trapped. And it means quantifying outcomes in the near term, showing them how this pays for itself within weeks, not years. In effect, you become the guide who does two things: (1) reduce the burden of choice and (2) carry some of the risk for them. In a shutdown or during a disaster, that combination—simplicity, prescription, and risk reversal—turns indecision into action and stalled conversations into revenue.

Shutdowns are painful no matter what.

I wish I had a magic wand to prevent the looming government shutdown, or, when and if it does come, to relieve the pain it will cause you and all small business owners across America. But just because there’s no such magic, it doesn’t follow that we’re powerless and have no agency in the face of this threat.

As solopreneurs and microbusiness owners, we can rely on our strengths: agility and speed. We can move quickly, without panic, to do what we can. The above list is only meant as a starting point.

What else do you think we need to do prepare and endure?

Share your thoughts in the comments.

And one more thing…

When the midterm elections come in 2026, be sure to cast your vote and fire the Republicans responsible for this gross mismanagement. We the people need to put the Democrats in control of the House and the Senate so they can act as a check on Trump’s unprecedented corruption and authoritarian excesses, and to dismantle the chokehold the MAGA Republicans have on power in the Oval Office and Congress. As you can plainly see, they are NOT exercising that power to help poor, working class, or middle class Americans like you and me.

In fact, they’re doing the opposite.