How will sequestration hurt your small business? If Congress and the President can’t compromise, here’s what some news sources around the Web say about how the cuts beginning effect March 1 could affect small business owners.
There’s likely to be a negative ripple effect of a slowdown in business, CNBC.com reports. The budget cuts would affect domestic spending in many sectors of the U.S. economy, including military spending, aviation, and education programs for low-income families. Unlike bigger businesses, small companies are more at risk because they lack the cash cushion to ride out federal budget cuts.
CBS Money Watch says the sequester is already hurting small businesses. SBA head Karen Mills told CBS that the Defense Department and many other government agencies already cut back on spending in anticipation of the sequester. If the cuts are fully implemented, over 2 million jobs could be at risk.
Fox Small Business talks to some small defense contractors who are girding their loins in preparation for the cuts. White House estimates say nearly half of the cuts will come from the defense spending budget, meaning these contractors, and states such as California, Virginia and Maryland, will be hit especially hard.
Will sequestration affect your business? Read these articles to find out more.