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  • Shutdown strain: Small US businesses reel under halted contracts; firms weigh layoffs as Congress moves to end deadlock
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Shutdown strain: Small US businesses reel under halted contracts; firms weigh layoffs as Congress moves to end deadlock

Sumitra November 13, 2025
US small businesses are grappling with a severe cash crunch due to the prolonged government shutdown, now in its seventh week. Owners are cutting costs, delaying payments, and considering layoffs as federal contracts and funding halt. This uncertainty is disrupting operations, with some facing project cancellations and significant financial strain, impacting their ability to recover even after the government reopens.

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