A Maryland -based technological consulting company said it had reduced 20% of people on its pay when a freezing of federal funding has compromised almost half of its income.
A career development company in Colorado said it had lost four dollars out of five dollars when the federal government has canceled all its contracts.
A logistics company based in Alaska has rubbed mentions of diversity, equity and inclusion, or DEI, hundreds of federal documents within 36 hours to recover millions of public funds, said the company.
A wave of cost reduction carried out by the administration of President Donald Trump has put thousands of unemployed public employees, but the approach of Slash-And-Burn has also spread in the private sector, paralyzing certain small businesses with links with the federal government and weakening a federal agency responsible for supporting small businesses, according to interviews with seven small businesses, as well as small advocate companies.
US government -related companies represent around 7.5 million jobs, the Brooking Institution find. This figure represents around 4.5% of the country’s workforce.
Many of these companies are small businesses, which have received a total of approximately $ 180 billion in federal contracts during the year ending in September, or nearly $ 3 of $ 10 in contracts during this period, according to the American administration of small businessesA government agency.
John Arensmeyer, founder and CEO of the Small Business Majority advocacy group, warned earlier this month that Trump administration had left the organization “deeply worried”.
“The directives to arrest all federal funds will make it impossible for small companies to access loans and critical subsidies,” added Arensmeyer.
In response to the request for comments from ABC News, the White House praised Trump’s approach to support small businesses.
“After the optimism of small businesses has reached low records under the Biden administration, the economic policies of President Trump publish real” mom and pop “companies across the country – and not government entrepreneurs earning tens of millions of dollars with taxpayers,” said White House spokesman Taylor Rogers. “It will continue to reduce waste spending, offer transparency and abandon a new golden age for taxpayers, families and small businesses.”
Trump’s push to interrupt federal funding included an executive decree last month by interrupting funding from the USAID, a federal foreign anime agency.
OCCAMS Group, a technology consulting company based in Columbia, Maryland, saw its income almost halved this month after the Trump administration interrupted funding for an USAID entrepreneur who composes one of the largest customers of the Occams group, told ABC News, the founder and chief executive officer of the Occams.
Certain invoices in December remain unpaid, added Sinan, saying that business with the entrepreneur represented $ 200,000 per month of income. The annual revenues of the Occams group amount to more than $ 5 million, Sinan said.
“I was left in the process of being dismented,” said Sinan. “We could not make pay.”
The company of 50 people reduced links with 10 consultants, while the remaining employees worked for hours longer than normal while the company was looking for new cases, he added.
“The small business is supposed to be the engine of the economy,” said Sinan. “My company was left behind.”
A federal judge made a temporary ban order on February 13 which raised the break on foreign aid.
A week later, a court concluded that the Trump administration had violated the prohibition order – and it called on the White House to fill millions of foreign aid payments.
But on February 21, Sinan said that the Occams group had not received the customer’s payment that contracts with the USAID.
“When sudden policy changes occur, this creates uncertainty, not only for owners, but for employees, customers and the economy as a whole,” said Sinan in a statement. “We want to continue to hire, develop and innovate, but we need a predictable environment to do it effectively.”
The seal if the admiration of small businesses is indicated outside the seat building in Washington, DC
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The layoffs of private sector entrepreneurs can have an impact more quickly on the economy than certain federal job cuts, ABC News Julia Pollak, chief economist of Ziprecruit, told ABC.
Federal employees who accept a takeover offered by the Trump administration should receive a full salary until September. On the other hand, employees in the private sector who lose their jobs could miss the remuneration and the benefits almost immediately, giving a faster blow to the economy, said Pollak.
“There is a certain degree of concern, concern and uncertainty which extends much further than federal workforce,” added Pollak, highlighting the decline in federal funding as a factor in a recent drop in consumer attitudes with regard to the economy.
“There are many non -profit companies and organizations that obtain a substantial part of their federal government’s budgets, and they are now afraid that they are affected by these cuts,” said Pollak.
In addition to a pressure extent for public spending reductions, Trump published an executive decree last month, canceling federal contracts and subsidies for Dei’s initiatives. The move aimed to “terminate” all the contracts and subsidies related to actions “, the order Said, reducing the financing of companies that have helped provide programs.
Hanaa Jiminez, who heads Gold Cardinal Consulting, a management consulting company in Aurora, Colorado, said that the federal government had canceled all its contracts, which represented $ 14.5 million or approximately 80% of the company’s annual income.
“The first contracts to be followed were those dei, but the leaders and the coaching we provide were also canceled,” said Jiminez. “It was very sad to learn.”
The company may have to put off some of its five employees, said Jiminez, but it will first explore means to reduce their wages to take away.
“It is really to make sure that we can prevent dismissals as much as possible,” added Jiminez.
Friday, a federal judge of Maryland blocked the ordinance of the White House cutting the subsidies and contracts of Dei. On Tuesday, however, the company’s contracts had not been restored, and the company had not received any indication that they would be, said Jiminez.
The thrust to eradicate Federal contracts by also imposed expensive compliance challenges, said News Christine Hopkins, who directs a pair of logistics companies in Anchorage, Alaska.
A government official who oversees government government contracts has urged Hopkins to withdraw all the Hundreds of documents in a day and a half to ensure that the contracts remained in place, said Hopkins.
Government contracts totaling approximately $ 7 million represent approximately 80% of income in both companies: SCI Federal Services and Advanced Supply Chain International, she said.
DEI programs are focused only on improving employment for military veterans and their spouses, added Hopkins, who voted for Trump.
“It was frustrating to have to respond in the short term to what I would call politically correct documents,” she said, acknowledging that she supports the wider goal of the Trump administration to reduce government waste.
“I am not conceptually opposed to what is happening,” added Hendricks. “I am opposed to the speed at which it happens and with the way in which little consideration.”
