SMBs across U.S. still shook from shutdown
Main Street wildly uncertain about Capitol Hill's support
NEW YORK / CHICAGO / LOS ANGELES (Nov. 17, 2025) — At a moment when small businesses are feeling squeezed nationally, a few resilient stories from major cities show how local companies are hustling, pivoting and leaning on community — even as macro turmoil threatens their stability.
Federal Shutdown Strangles Contracted Small Firms
In New York, small contractors tied to government work are among the hardest hit as Congress emerges from the longest shutdown in U.S. history. Firms that rely on federal contracts — like Black Box Safety, which makes flashlights — are reporting major cash-flow snags. A $1.9 million contract, which represents a sizable slice of annual revenue, is stuck in limbo as agency approvals remain stagnant.
“We know from history that departments and agencies — and their contracting partners — will continue to feel the impact of this shutdown for months to come,” Professional Services Council CEO James W. Carroll said in a statement. “For example, there are challenges in digging out from back-logged invoices, rescinding stop work orders and flowing payments throughout the supply chain.”
This applies to SBA funding too: according to a federal alert, the shutdown blocked about $5 billion in guaranteed loans for 10,000 small businesses. That’s not just cash off the table — that’s expansion plans sidelined, payrolls trimmed, and local economies stalled. Though the government is open for business again, lending doesn’t rebound that quickly.
This isn’t just a Washington problem. In Orlando, some early-stage, tech-focused startups in small-business incubators doubted whether they would survive prolonged contract delays too.
Chicago’s Small-Biz Revival: “Chicago Loves Local” Campaign
Meanwhile in Chicago, small-business leaders are mounting a counterattack — not with bailouts but with a grassroots campaign. The “Chicago Loves Local” initiative, backed by community groups including the Andersonville Chamber of Commerce, is calling on city residents to shop neighborhood stores from the North Side to the Southeast Corridor.
One of the campaign’s standouts: Ándale Market, a bodega in Andersonville run by Mia Sakai. She imports niche products, stocks international goods, and is banking on this local love to make or break her holiday season.
“The cost of tariffs is just one of the challenges,” according to Sakai via WBEZ. And for many neighborhood owners, the holidays aren’t just a windfall — they’re make-or-break.
LA’s Chainsaw: From Garage Pop-Up to Permanent Café
Over in Los Angeles, creative SMB grit is winning out. Culinary underground favorite Chainsaw, which made its name hosting dinner-party pop-ups in a garage, is now opening a permanent café in Melrose Hill.
Founder Karla Subero Pittol built her brand on community, creativity, and reinvention. The new spot leans into that: a takeaway window, minimal seating, and a menu that’s just as eclectic as the pop-up — arepas, empanadas, Sri Lankan-inspired curries, and ice cream.
For her and her team, it’s less about scaling fast than doing something real. “We want to be malleable forever,” she said. “All I want to do is feed people good food and make them happy.”
Peep the common thread.
What ties these metros together is a simple business truth: small enterprises are the backbone of local economies — a common mantra among congresspersons. However, they’re also vulnerable to systemic risk. Some are exposed because of government dependency. Others are leaning into community campaigns or bold reinvention to stay alive.
Cash-flow risk vs. capital access: The federal shutdown is proving how fragile contract-reliant SMBs can be when big-money payers freeze.
Community as economic engine: Chicago’s campaign shows how consumer behavior shifts can be a powerful lever — especially during crunch time.
Creativity + authenticity = survival: Chainsaw’s journey proves that passion-driven SMBs, rooted in culture and authenticity, can scale thoughtfully.
For business leaders, investors, and policy watchers, these stories are more than feel-good moments. They’re leading indicators: how vulnerable small businesses respond now will shape where capital flows, where jobs are created, and whether neighborhoods survive or stagnate.
Bottom line
Across the country, small businesses aren’t just weathering the storm — they’re forcing their own narratives. From New York contractors to Chicago grocers to LA pop-up chefs, these entrepreneurs are navigating disruption by leaning into resilience, community and reinvention. The question for 2026 isn’t just whether they survive—but whether they thrive on their own terms.