Laws & Legislation


10 22 2013

10 22 2013

Further Small Business Impacts of U. S. Government Shutdown

Among the first reported impacts to small businesses caused by the federal shutdown was the halting of federal loans and contracts. A few days later, however, even more, effects have been felt. Business has slowed down near the nation’s capital and, as E-verify has been suspended, small businesses around the country are cautious to hire new employees.

Hurting the local economy

On Thursday, Oct. 3, President Obama spoke to a small crowd in Rockville Md., near the nation’s capital, about the adverse effects the shutdown has on the local economy, The Washington Post reported.

“Hundreds of thousands of Americans, a lot of whom live around here, don’t know when they are going to get their paycheck,” he explained. “And that means stores and restaurants around here don’t know if they will have as many customers.”

Standing next to the president were construction entrepreneurs Cidalia and Natalia Luis, who fear their business will diminish if the shutdown continues. A large portion of their clientele – federal government workers – will not be receiving paychecks to spend on new construction projects.

Hiring made more difficult

But the detrimental effects have not been limited to the D.C. area. Small businesses in the 22 states that require employers to use E-verify have been flustered as the federal electronic service for determining an employee’s work eligibility is among the programs that have been suspended.

Amid the confusion, the U.S. Citizenship and Immigration Services posted a notice on its website explaining that the “three-day rule” to submit a new hire is suspended. However, employers will likely need to screen new hires when the system returns. This means businesses could have employees on board for weeks before learning they’re ineligible to work. For some businesses, such as Ivory Homebuilders in Utah, hiring is not worth the risk, The Guardian reports.

“We have a fellow right now, waiting for us to extend an offer and we can’t,” said Ivory president Chris Gamvroulas.

As impacts of the shutdown continue to ring out, small businesses are seeking support. Federal lenders have withdrawn from the scene but small businesses can turn to alternative lenders for help. Getting a small business loan during the shutdown is possible through National Funding. Along with a variety of other financing services, National Funding is helping small businesses stay strong throughout the shutdown.


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Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.


US Patriot Act:

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan. What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number. We will also ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.


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The Merchant and Owner(s)/Officer(s) identified in the application (individually, an “Applicant”) each represents, acknowledges and agrees that (1) all information and documents provided to National Funding, Inc. (“NF”) including credit card processor statements are true, accurate and complete, (2) Applicant will immediately notify NF of any change in such information or financial condition, (3) Applicant authorizes NF to disclose all information and documents that NF may obtain including credit reports to other persons or entities (collectively, “Assignees”) that may be involved with or acquire commercial loans having daily repayment features and/or Merchant Cash Advance transactions, including without limitation the application therefor (collectively, “Transactions”) and each Assignee is authorized to use such information and documents, and share such information and documents with other Assignees, in connection with potential Transactions, (4) each Assignee will rely upon the accuracy and completeness of such information and documents, (5) NF, Assignees, and each of their representatives, successors, assigns and designees (collectively, “Recipients”) are authorized to request and receive any investigative reports, credit reports, statements from creditors or financial institutions, verification of information, or any other information that a Recipient deems necessary, (6) Applicant waives and releases any claims against Recipients and any information-providers arising from any act or omission relating to the requesting, receiving or release of information, and (7) each Owner/Officer represents that he or she is authorized to sign this form on behalf of Merchant.(8) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (9) this request is for business and not for consumer purposes.


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I hereby certify: (1) the information provided is true and correct, (2) you are hereby authorized to investigate all bank, credit, and trade references, and said references are hereby authorized to release any requested information to you or your nominee, (3) such authorization shall extend to obtaining personal credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (4) this information may be transmitted by us to you and by you to underwriter(s) for the purpose of granting me credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (5) I am over 18 years of age, (6) I acknowledge my rights under the Fair Credit Reporting Act, (7) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (8) this request is for business and not for consumer purposes.


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The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status or age (provided the applicant has the capacity to enter into the binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. If for any reason your application for business credit is denied, you have the right to a written statement of the specific reasons for the denial. To obtain the statement, please write to National Funding Inc., 9820 Towne Centre Drive, San Diego, California 92121. Funding amount and credit approval is subject to a full credit profile review.