• What the Federal Government Shutdown Means for Fairbanks Businesses and Military Families

    Key Impacts on Fairbanks and Alaska Businesses

    SBA Loan Processing Halted

    Small businesses in Fairbanks seeking capital through the Small Business Administration (SBA) will face delays. The SBA has suspended processing of new 7(a) and 504 loans, which are critical for expansions, equipment purchases, and other investments.

    Federal Employee Furloughs

    Alaska is home to approximately 15,000 civilian federal workers, many of whom are now furloughed or working without pay. This could reduce consumer spending in Fairbanks, especially if the shutdown continues and paychecks are missed.

    Delays in Federal Contracts and Payments

    Businesses awaiting federal payments or contract approvals may experience cash flow issues. Regulatory slowdowns could also affect supply chains and infrastructure projects.

    Travel and Tourism Disruptions

    While air traffic controllers and TSA agents are still working, they are doing so without pay. This may lead to longer security lines and potential delays at Fairbanks International Airport. Passport processing and Global Entry applications are also paused, affecting international business travel.

    Nonprofit Strain

    Local nonprofits, which often serve as a safety net during economic disruptions, are bracing for increased demand and reduced funding. Many rely on federal grants that are now frozen, and staffing shortages may worsen.

    State-Level Contingency Plans

    Governor Mike Dunleavy has directed Alaska’s executive departments to maintain essential services and minimize disruptions. Programs like Medicaid and Title IV-E Foster Care are expected to continue, but others may be reassessed if the shutdown persists.

    Impacts on the Military Community

    Active-Duty Personnel and Pay

    Active-duty service members at Fort Wainwright and Eielson Air Force Base are required to continue reporting for duty, but their paychecks will be delayed unless Congress passes a separate funding bill.

    Military Families and Childcare

    Child development centers and family support programs may face closures or reduced services depending on staffing and funding. Families are encouraged to check with their local installations for updates.

    Healthcare Services

    Inpatient and emergency care at military treatment facilities will continue. However, elective procedures may be postponed. TRICARE coverage remains active, and private sector care is unaffected.

    Civilian Defense Employees

    Roughly half of the Department of Defense’s civilian workforce is furloughed. Those supporting essential operations continue to work without pay. This affects base operations and services.

    Veterans Services

    VA medical centers and clinics remain open, and benefits such as compensation, pension, and housing continue to be processed. However, services like transition assistance and career counseling are suspended, and regional VA offices are closed.

    Financial Assistance

    Military banks and credit unions, including Navy Federal and USAA, are offering 0% APR loans or paycheck advances to eligible members affected by the shutdown.

    What Businesses Can Do

    • Plan for Delays: If your business relies on federal loans, contracts, or travel, prepare for interruptions.
    • Support Employees: If you have federal workers in your workforce, they may eventually be faced with financial strain. Consider flexible scheduling or temporary assistance.
    • Lean on Local Resources: The Chamber is here to support you. Reach out if you need help navigating this uncertain time.
    • Support Military Families: If your business offers services or discounts to military personnel, consider extending flexible payment options or promotions during the shutdown.