Recently, the Senate passed No Budget, No Pay Act of 2013. The bill directs the House of Representatives and the Senate to adopt a FY2014 budget by April 15, 2013. If either body fails, their paychecks will be put into an escrow account starting on April 16 until that body adopts a budget. The bill also suspends the debt limit until May 18, 2013. If Congress does its job and passes a budget, it will avoid a debt-ceiling showdown.
Small Business Majority sponsored a poll that shows 55 percent of small businesses “want a long-term solution to the debt ceiling so the U.S. can pay its bills and the issue doesn’t come up for political votes over and over again, thus jeopardizing our country’s credit rating.” That’s compared to a 36 percent minority who disagreed.
For FY2013, the federal government is currently operating on a six-month temporary funding measure that expires on March 27, 2013. The Congress turns its attention to sequestration and full year FY2013 appropriations. Sequestration happens on March 1. Basically, if Congress can’t agree on a budget, every agency is going to see a cut to their lines for 2013 (which is half over.) Many people are saying that sequestration is not good for the economy. It’s not good for small business lending either. (I’m still looking for information on how it will effect the micro programs.)
Politicians are doing what they do best – posturing, but I’m guessing we won’t know what happens behind closed doors until the very last possible minute. Oh the drama.