Small Businesses Face Bankruptcy Due to Closure of National Parks

Small Businesses Face Bankruptcy Due to Closure of National Parks2023-03-08T21:59:20-07:00
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The government shutdown severely affected small businesses that depend on tourists to stay in business.  The government shutdown forced national parks all over the country to be closed, and the owners that depend on the flow of tourists to keep their shops and kiosks open are facing bankruptcy.  Two million visitors were turned away resulting in millions of lost revenue.  Many of these small businesses make a considerable amount of their profit from tourists during this time of the season.  Further, even if the closure is relatively short, there can still be lingering effects.

To further compound the problem, the Small Business Administration shut down as well, resulting in small business owners not having access for a period of time to some training and counseling programs, international trade services and government contracting aid.  More importantly, processing applications for government-backed, small business loans, leaving employers without the capital they need to start, expand or save their businesses.

Fortunately, filing a business bankruptcy does not have to mean the end for small tourist shops and hotels.  There are cases in which bankruptcy has stopped creditors from shutting down a ski resort after it struggled with cash-flow problems and a lack of snow. The Chapter 11 allowed the resort to continue operating while it sought a solution to its financial troubles.

Luckily, the government shutdown did not continue for very long, otherwise the bankruptcy courts would have been affected as well resulting in difficulties for people trying to file bankruptcy.


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