It is not just the fears of some citizens or the continual ‘woe-is-us’ mentality of the politicians that comes with the partial government shutdown. The action has also almost immediately had an effect on the businesses within the first day.
The potential of larger problems continues to loom as well if the government remains closed for more than a handful of days. And the gravity of the shutdown ought be noted by all.
The stalemate on the budget saw many agencies go without money at all, which forced furloughs of over 800,000 works. At this point, government workers are wondering what to do next, some have joked about taking extra time to choose their NFL picks. The widespread cutbacks on services and closures to national parks was also seen across the country.
The government’s very online E-Verify system, which verifies legal work capabilities of individuals was also taken offline. Small Business Administration stopped processing loans as well, except for the firms who sought out disaster aid, such as those in Colorado.
Meanwhile, the Federal Housing Administration had to slow its loan processes, and delays would continue to build over time. “It’s going to make it harder for first-time home buyers, particularly in hot markets like a lot of California, to compete for properties,” said Guy Cecala, publisher of Inside Mortgage Finance. “If you’re a seller of a home and you know a borrower is applying for an FHA mortgage, you have to be either lenient or look for another offer,” he said.
The Mortgage Bankers Association stated that it was watching over the situation and simply hoping there would not be a prolonged shutdown. “A few days, I think we’re OK. A few weeks, it starts to get problematic,” said Pete Mills, the group’s senior vice president for residential policy and member services.
One of the already overlooked problems of the shutdown is that the monthly job gain/loss report will not be available if continued government shutdown persists. The Bureau of Labor Statistics stated that it could not longer seek operations during the shutdown.