Georgia small business most vulnerable to shutdown, study says


If the government shutdown continues, the impact on Georgia will be worst among small businesses who need federal help, according to a quick survey by a Washington, D.C.-based data research company.

Georgia has the highest average small business loan size of all states: $459,133, according to WalletHub, a Washington, D.C.-based company offering consumer credit scores and credit reports

In terms of the damage being done by the shutdown, the state ranks roughly in the middle – 22nd – but parts of the economy are more vulnerable, reported WalletHub.

And since the health of small business is generally seen as crucial to job growth, a freeze on federal loans could be a long-term problem.

A temporary shuttering of the Internal Revenue Service is also a problem for Georgia’s housing market. Without the IRS, a mortgage company cannot verify a borrower’s income using his or her Social Security number and taxpayer data.

The IRS has closed and stopped processing all forms, according to the National Association of Realtors.

However, the association said it has “received indications” that many lenders are willing to put the income verification on hold, while going ahead with the rest of mortgage process.

If the shutdown were to continue, the hardest hit would be Washington, D.C., followed by Maryland and Virginia.

The state’s least affected would be Indiana, Michigan and Minnesota, according to WalletHub.

Wisconsin has the lowest share of federal jobs, about 1 percent.

Georgia has 2.36 percent of its jobs on the federal payroll, slightly less than the national average of 2.63 times more federal jobs, WalletHub said.

WalletHub is a Washington, D.C.-based company offering consumer credit scores and credit reports.

MYAJC.COM: REAL JOURNALISM. REAL LOCAL IMPACT.

AJC Business reporter Michael E. Kanell keeps you updated on the latest news about jobs, housing and consumer issues in metro Atlanta and beyond. You'll find more on myAJC.com, including these stories:

 

Never miss a minute of what's happening in local business news. Subscribe to myAJC.com



Reader Comments ...


Next Up in Business

Equifax wants judge to reject suits by banks
Equifax wants judge to reject suits by banks

Equifax has asked a federal judge to reject the claims from 46 banks and credit unions for payment of damages because of last year’s massive data breach at the Atlanta-based company. The companies, which are based in 29 states, sued Equifax and claimed that Equifax owes them for all the costs they incurred after the data breach was...
Georgia jobless rate at 17-year low; trade war a worry
Georgia jobless rate at 17-year low; trade war a worry

Georgia’s economy had a strong June, adding 14,200 jobs while the unemployment rate slipped to its lowest level in 17 years. In a sign of strong hiring, the jobless rate is slipped from 4.2 percent in May to 4.1 percent while adding more than 10,000 people to the labor force, according to Georgia Department of Labor. Since June of last...
Delta relaunches Atlanta-Shanghai route, key link to China
Delta relaunches Atlanta-Shanghai route, key link to China

Delta Air Lines is reconnecting a key link between the Southeast and China with the resumption of flights from Atlanta to Shanghai this week. It’s the culmination of a years-long effort to bring the service back, after years with no nonstop flights between the world’s busiest airport and China. Delta CEO Ed Bastian said Shanghai...
Paulding airport says lease still calls for commercialization effort
Paulding airport says lease still calls for commercialization effort

Paulding County’s airport may try again to commercialize and attract airline flights, after its last effort was brought to an end by the Federal Aviation Administration. That’s because a long-term lease with an airport partner could obligate it to do so, according to the Paulding airport director. That company, Silver Comet Terminal Partners...
Super Bowl prep underway in Atlanta, 200 days in advance
Super Bowl prep underway in Atlanta, 200 days in advance

The Super Bowl is still 200 days away. But thousands of hotel rooms are already booked, tens of millions of dollars are already invested and hundreds of companies are vying for the right to supply things like carpeting, catering, ice, flowers, golf carts, paint, piping and portable potties. With Atlanta getting its third chance as the site of the game...
More Stories