Businesses fear prolonged federal shutdown
Nearly 1,500 civilian workers at the Portsmouth Naval Shipyard in Kittery were placed on furlough Tuesday, joining thousands of the state’s 10,000 federal workers affected by a budget stalemate in Congress that has shut down the federal government.
The Portland Press Herald reported that private sector employers are not worried about immediate impacts from the shutdown Tuesday but expressed concern that a prolonged closure of many federal offices could put a dent in business.
Marcia Hartt, vice president of the Portland Regional Chamber, told the paper the shutdown will stop the U.S. Small Business Administration from processing loans, a logjam that could affect a wide range of businesses if the closure extends beyond one or two weeks.
Bart Stevens, president of the Maine Association of Realtors, also said it’s too early for real estate agents to panic, but noted that residential mortgage-seekers could have difficulties getting their loans processed until the government resumes functioning normally.
The Bangor Daily News reported industries that have the federal government as a customer could face challenges in the weeks ahead if the shutdown is prolonged, but companies operating on previously approved contracts — such as defense contractors Bath Iron Works and Maine Machine Products — do not face any immediate impact from the shutdown.
In the short term, the government shutdown has closed the country’s national parks, including Acadia National Park, and affected an unknown number of federal employees who were notified whether they would continue work or begin furloughs on Tuesday. On a national scale, the Kansas City Star reported that many economic reports also will fall victim to the shutdown.
The shutdown allows for essential personnel and some other federal employees to continue work, including approximately 540 federal employees at a Defense Finance and Accounting Service office in Limestone, who were not furloughed Tuesday.
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