ARTICLE
By Kristen Brown, Executive Director, Santa Cruz Area Chamber of Commerce With the federal government shutdown continuing into its third week, many of our businesses, non-profits, and community organizations are starting to feel the strain. For some, ongoing federal budget cuts have already been affecting operations throughout the year, even before the October 1st shutdown. While national headlines focus on Washington, the real impacts are happening in communities like ours, where small businesses, local government agencies, and non-profit organizations drive local jobs, innovation, and neighborhood vitality. One of the noticeable challenges has been the freeze on new small business loans. The Small Business Administration is unable to process most new loans, leaving some businesses that planned expansions or hiring in a holding pattern. Our local financial institutions, however, stand ready to assist. “West Coast Community Bank (WCCB) remains committed to supporting our business community amid the challenges of a federal government shutdown,” said Chief Lending Officer Angelo De Bernardo. “We encourage business owners to meet with their local bankers to discuss current needs and explore financing solutions during this uncertain time.” SBA loan processing is delayed, yet WCCB continues to accept applications and will be ready to move forward once federal operations resume. Alternative financing options also are available in the meantime, including the California Coastal Loan Guarantee Program that offers state-backed support for access to operating funds. In addition, Bay Federal Credit Union stands ready to support both members and local businesses affected by the government shutdown. The Credit Union encourages anyone experiencing financial hardship to reach out to discuss personalized solutions, including short-term assistance options and financial counseling. A dedicated resource page has been created on the Bay Federal website to help members understand available relief programs, explore financing alternatives, and connect directly with a representative for guidance during this challenging time. For those who rely on grant funding, research partnerships, or related contracts, the shutdown may feel like just the next blow in a series of hits since the beginning of the year. Since January, UC Santa Cruz has seen the termination of about 40 federal research grants, totaling roughly $30 million. Most of this funding has been restored through lawsuits and legal challenges, but the university still faces around $5 million in losses, along with significant uncertainty and disruption to its labs, employees, and research operations. Some programs were forced to lay off staff before funding was reinstated, causing lasting damage to teams and projects. These interruptions threaten critical research in areas ranging from disease treatment to wildfire detection and have made it increasingly difficult to plan for the future. While UCSC has been successful in court challenges, the ongoing federal government shutdown and uncertainty about future congressional funding keep the university on high alert. Leaders worry that continued instability could cost the nation a generation of scientists, researchers, and innovators, and could also impact the local economy, which benefits greatly from UCSC’s research enterprise. On the local government front, County operations have not yet experienced many impacts due to there being 30 days of funding for essential safety net services. However, County officials have noted that local CalFresh recipients may find that their benefits are not available for the month of November, if the government shutdown continues. Additionally, Encompass Community Services, the largest nonprofit provider of health and human services in Santa Cruz County, has already faced a loss of millions of dollars in federal funding and is now facing even more uncertainty. In a release issued by the organization on October 1st, they noted its Head Start and Early Head Start programs are facing an immediate funding crisis due to the shutdown. Without funding being restored, the agency faces the reality of closing 15 classrooms, laying off 95 staff, and leaving hundreds of local families without childcare services. Santa Cruz has a long history of resilience and creativity by staying adaptable, using available local resources, and leaning on one another. Now is the time to tap into the strength of our local community. For financial resources, consider our local lenders like those at West Coast Community Bank and Bay Federal Credit Union. For needs related to healthcare, housing, and essential services, call United Way’s 211 helpline. For nutrition resources, reach out to Second Harvest Food Bank. The Chamber’s Business Directory can also help you find any resources or connections you may need. Above all, the Chamber is here to support you, whether you need a referral or access to additional resources. You can also request the Chamber’s advocacy on your behalf through our website. As always, please don’t hesitate to contact us directly if there is anything the Chamber can do to support you as we work to navigate these challenges together.
By Kristen Brown, Executive Director, Santa Cruz Area Chamber of Commerce
With the federal government shutdown continuing into its third week, many of our businesses, non-profits, and community organizations are starting to feel the strain. For some, ongoing federal budget cuts have already been affecting operations throughout the year, even before the October 1st shutdown. While national headlines focus on Washington, the real impacts are happening in communities like ours, where small businesses, local government agencies, and non-profit organizations drive local jobs, innovation, and neighborhood vitality.
One of the noticeable challenges has been the freeze on new small business loans. The Small Business Administration is unable to process most new loans, leaving some businesses that planned expansions or hiring in a holding pattern. Our local financial institutions, however, stand ready to assist.
“West Coast Community Bank (WCCB) remains committed to supporting our business community amid the challenges of a federal government shutdown,” said Chief Lending Officer Angelo De Bernardo. “We encourage business owners to meet with their local bankers to discuss current needs and explore financing solutions during this uncertain time.” SBA loan processing is delayed, yet WCCB continues to accept applications and will be ready to move forward once federal operations resume. Alternative financing options also are available in the meantime, including the California Coastal Loan Guarantee Program that offers state-backed support for access to operating funds.
In addition, Bay Federal Credit Union stands ready to support both members and local businesses affected by the government shutdown. The Credit Union encourages anyone experiencing financial hardship to reach out to discuss personalized solutions, including short-term assistance options and financial counseling. A dedicated resource page has been created on the Bay Federal website to help members understand available relief programs, explore financing alternatives, and connect directly with a representative for guidance during this challenging time.
For those who rely on grant funding, research partnerships, or related contracts, the shutdown may feel like just the next blow in a series of hits since the beginning of the year. Since January, UC Santa Cruz has seen the termination of about 40 federal research grants, totaling roughly $30 million. Most of this funding has been restored through lawsuits and legal challenges, but the university still faces around $5 million in losses, along with significant uncertainty and disruption to its labs, employees, and research operations. Some programs were forced to lay off staff before funding was reinstated, causing lasting damage to teams and projects. These interruptions threaten critical research in areas ranging from disease treatment to wildfire detection and have made it increasingly difficult to plan for the future. While UCSC has been successful in court challenges, the ongoing federal government shutdown and uncertainty about future congressional funding keep the university on high alert. Leaders worry that continued instability could cost the nation a generation of scientists, researchers, and innovators, and could also impact the local economy, which benefits greatly from UCSC’s research enterprise.
On the local government front, County operations have not yet experienced many impacts due to there being 30 days of funding for essential safety net services. However, County officials have noted that local CalFresh recipients may find that their benefits are not available for the month of November, if the government shutdown continues. Additionally, Encompass Community Services, the largest nonprofit provider of health and human services in Santa Cruz County, has already faced a loss of millions of dollars in federal funding and is now facing even more uncertainty. In a release issued by the organization on October 1st, they noted its Head Start and Early Head Start programs are facing an immediate funding crisis due to the shutdown. Without funding being restored, the agency faces the reality of closing 15 classrooms, laying off 95 staff, and leaving hundreds of local families without childcare services.
Santa Cruz has a long history of resilience and creativity by staying adaptable, using available local resources, and leaning on one another. Now is the time to tap into the strength of our local community.
For financial resources, consider our local lenders like those at West Coast Community Bank and Bay Federal Credit Union. For needs related to healthcare, housing, and essential services, call United Way’s 211 helpline. For nutrition resources, reach out to Second Harvest Food Bank. The Chamber’s Business Directory can also help you find any resources or connections you may need.
Above all, the Chamber is here to support you, whether you need a referral or access to additional resources. You can also request the Chamber’s advocacy on your behalf through our website.
As always, please don’t hesitate to contact us directly if there is anything the Chamber can do to support you as we work to navigate these challenges together.