Small enterprises are navigating a complex landscape shaped by federal policy disruptions, evolving tax frameworks, and accelerating technological change. At the CO—100 Small Business Forum, Jeanette Mulvey, CO—Vice President and Editor-in-Chief, spoke with Neil Bradley, Executive Vice President and Chief Policy Officer at the U.S. Chamber of Commerce, to explore the implications for small businesses through 2025 and beyond.
The ongoing federal government shutdown, triggered on October 1, 2025, due to budget disagreements between political parties, continues to impact small firms. According to Bradley, thousands of small business contractors are not receiving payments for completed work, with no clear timeline for reimbursement.
“These shutdowns aren’t inevitable—they’re decisions,” Bradley stated. “And this is a poor one. We hope policymakers act swiftly to restore operations.”
Additionally, processing of Small Business Administration (SBA) loans has been suspended indefinitely, leaving many entrepreneurs in financial uncertainty.
Despite political instability, Bradley noted that the broader economy shows resilience. “We’re not seeing strong indicators of a recession right now, which is positive. Our concern is that growth could be significantly stronger if policy barriers were reduced,” he said.
Several economic factors are shaping the environment for small enterprises:
Tariffs currently average 18%, effectively acting as a $600 billion burden on the economy, with a Supreme Court decision pending on their constitutional validity.
The passage of the “One Big Beautiful Bill” prevented a widespread tax increase and made permanent deductions for business investments and research activities.
New tax credits are incentivizing small firms to collaborate locally to expand childcare services for employees.
On immigration, Bradley highlighted a troubling trend: recent rollbacks in legal work authorizations are suddenly rendering long-term residents ineligible to work, shrinking the labor pool needed for economic expansion. The Chamber is advocating for reforms to streamline legal pathways for skilled and essential workers.
Technology, particularly artificial intelligence, offers a bright spot. “Our data shows 58% of small businesses are already using generative AI—a figure that has more than doubled in just three years,” Bradley said.
Entrepreneurs are leveraging AI to automate tasks, address staffing shortages, and broaden market reach. This agility, Bradley noted, positions small firms as pioneers in harnessing AI for productivity gains.
“They’re innovators who aren’t afraid to challenge norms—often doing things larger corporations hesitate to try,” he added.
— news from U.S. Chamber of Commerce
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What SMBs Need to Know About the Government Shutdown, Economic Impacts, and AI in 2025
Small businesses are facing major shifts and impacts of government shutdowns, rising tariffs, tax reforms, and rapid AI adoption. n nAt the CO— 100 Small Business Forum, CO— Vice President and Editor-in-Chief Jeanette Mulvey sat down with Neil Bradley, Executive Vice President, Chief Policy Officer, and Head of Strategic Advocacy at the U.S. Chamber of Commerce, to unpack what this all means for small businesses for the rest of 2025 and beyond. n nThe shutdown’s real cost for small businesses n nOn October 1, 2025, the U.S. government shut down due to budget disputes between Republicans and Democrats. At the time of writing, the shutdown is ongoing, and it’s creating tangible consequences for small business contractors, loan recipients, and everyday citizens. n n“Thousands of small business contractors will go without their bills being paid, and who knows when they’ll have the opportunity to recoup those funds,” Bradley explained. n nFor small businesses waiting for an SBA loan from the Small Business Administration, Bradley warned that loan approvals are frozen indefinitely, leaving some businesses in limbo. n n“Shutdowns are choices,” Bradley emphasized. “This is a bad choice, and hopefully our elected officials will realize that quickly and bring it to an end.” n n[Read more: Small Business Funding: A Breakdown of Business Loan Types] n nIssues impacting the US economy n nThe shutdown was just one example of how political gridlock affects business confidence. Despite this, Bradley said the economy remains resilient. n n“I think from our perspective at the Chamber, it’s not that we’re worried about a recession — that [does] not [seem to be] the cards today [which is] a good thing — I think what worries us is that we think we could be growing even stronger.” n nBradley outlined several key policies shaping the small business landscape: n nTariffs are now averaging 18%, imposing a $600 billion tax on the economy, with a Supreme Court ruling pending on their legality. n nThe “One Big Beautiful Bill” has helped small businesses avoid a major tax hike and made investment and research and development deductions permanent. n nNew tax incentives encourage small businesses to partner locally to expand childcare options for working parents. n n[Read more: Tax Credits Small Businesses Don’t Know They Qualify For] n nRegarding immigration, Bradley warned of shifting policies that could affect the worker pool. n n“[The U.S. is] in the midst of pulling back … legal work authorizations, which means all of a sudden people, some of whom’ve been here a couple of decades, have suddenly gone from being legally eligible to work to not legally eligible to work,” Bradley explained. “That means that we don’t have a lot of people that the economy needs in order to grow.” n nBradley says the Chamber is speaking with elected officials on Capitol Hill to make it easier for people to legally come to the country to work and contribute to the economy. n nAI is giving small businesses a competitive edge n nWhile policy challenges weigh on growth, Bradley said innovation — particularly AI — is fueling optimism. n n“Our research shows 58% of small businesses self-report [that] they’re using generative AI,” Bradley said, noting that this figure has more than doubled in three years. n nSmall businesses are adopting AI faster and more creatively to streamline operations, fill hiring gaps, and expand their reach. Bradley believes this inventive spirit positions small businesses at the forefront of AI-driven productivity gains, fueling stronger economic growth and proving their agility in adapting to new technologies. n n“[Small businesses] are rule breakers in a really good way,” Bradley emphasized. “[They] are doing the innovative things that a lot of large businesses won’t do.” n n[Read more: AI for Small Businesses: How to Stay Competitive] n nCO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.