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Why the Sequester is GOOD for Small Business Owners…
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Why the Sequester is Good for Small Business Owners

If you’re anything like me, you’ve grown weary of all the high drama in Washington these days. First the Fiscal Cliff; now the looming Sequester; next month it’ll be something else. But as we sit on the edge of our seats waiting to find out what will happen tomorrow, I’d like to tell you why the Sequester won’t be the end of the world as we know it.

I did an interview for a local newspaper yesterday, and I told them I don’t expect the Sequester to hurt the SBA or small businesses too badly, as some have predicted. I do think that small business loan production will be down this year, but for other reasons. I also believe that Sequestration will bring good long-term changes for small business owners all over the country. Watch the video below to find out why I believe these things, and see if you agree…

So, what do you think? How do you see the Sequester affecting your business? Leave a comment below to share your perspective on the latest Beltway theatrics.

Thanks for reading, watching, and sharing with others who’ll appreciate it!


P.S. If you’ve already picked up a copy of my book — thanks! And don’t forget to write a short review on Amazon.com. It’s been great to hear from business owners who have found the book to be helpful. If you haven’t gotten your copy of The Entrepreneur’s Secret to Creating Wealth yet, go here to do so. Thanks!

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  1. Gilbert Valdez says:


    This might be one of the biggest non-events ever. All major comapnies have had plenty of time to calculate thier exposure under many senarios. It seems to me that the bond market has digested this news already with yields giving up the gains experienced in late Jan early feb. The fact is that we have more clarity on policy and the path forward (right or wrong) than we have had in a long time.


    Gilbert Valdez, Atlanta

    • Chris Hurn says:

      I have to definitely agree with you here, Gilbert. Clarity is something we’ve had very little of and it’s refreshing to finally get some.

  2. Steven says:

    While I agree with you that the effects of the automatice cuts to the SBA will be minimal I however feel that the cuts might prove troublesome to the economy as a whole if the cuts occur to productive areas of government spending e.g. military cuts that reduce or retire contacts many small businesses rely on for revenue. Spending in our economy comes from only 3 sources: private sector, exports and the government. At this time the government is really the only sector that is spending at levels needed to support this fragile recovery. Unwise spending cuts at this point could negatively impact what can be defined as a weak recovery at best. While I support cuts in unproductive spending I’m afraid we may be throwing the baby out with the bath water because our politicians won’t do their job and truyly evaluate where the unproductive spending is occuring and cut their instead of protecting their pork at the expense of the recovery.

  3. Todd Lucas says:

    Thanks Chris –

    A refreshingly clear perspective on this ‘catastrophe’.

    I, too, believe that this is ‘much ado about nothing’, and that it is overall good for small businesses, the economy and the country as a whole. It will take more clear and concise communications like this from people in the private sector to overcome all of the hype.

  4. Scott A. Dennison says:

    Hey Chris – great comments. I agree with your assessment and think the sequester is good from one additional perspective: That as long as the media (and my competitors) are focused on it, they can’t simultaneously be focused on winning in the marketplace.

    Which gives me an added advantage, beyond the one we’ve already built through expert positioning.

    • Chris Hurn says:

      Very true, Scott. :)

  5. Kerry Ruth says:

    Chris! This is nothing but a ploy setting us up
    For the world ending next month! Isn’t it the end of
    March when they talk about real spending?
    This isn’t a cut but a reduction on increased spending
    Over last year! Shame on Obama and the like for
    Once again playing chicken little!! I have grown very tired
    Of the selfish games of the world ending just so they can increase
    The way too large crack like spending habits and desires to enlarge the size
    Government plays in ruining everyone’s lives and livelihoods!
    Just my thoughts

  6. David Soares says:

    I am not sure if you are aware that Lexden has staff that were involved in campaigning at the highest level on the republican side (Tom Ross was Chair for DE for the Republican party) and they may be able to help with SBA industry endeavors on capital hill. I am also available if you think I can help.

  7. Michael Gerard says:

    Chris, I agree with you, what business on main street or the average household that has not reduce their operating budget by at least 10% and our leaders in Washington cannot reduce the waste by 3.5%, they should be fired…..we would in our businesses.

  8. Bret Osterberg says:

    You are right on. It will be a good thing to only borrow 33 cents of every future dollar, rather than 35 cents, from China. The Executive Regime is failing to explain that this is a reduction in an increase in spending, not otherwise. This sequester is only scratching the surface of what needs to be done.
    That is impossible to explain to spendaholics who have a sense of entitlement, and who like to tell everyone that we need Big Government to take care of everyone, and that we “don’t need _____________” (fill in the blank with large sodas, certain types of guns, etc., etc.).
    Nice to see that Kerry is concerned about fiscal issues, after pledging $60 Million to the Syrian Rebels today. Pure Insanity, fueled by a horribly biased media machine.
    I look forward to reading your book in the near future. Thank you for the correspondence.

    • Chris Hurn says:

      Thanks for your comments, Bret. And yes, get that book… stat. :)

  9. Reg Byrd says:

    The Senate already rejected! You are right…

  10. Steve says:

    OK, Did I hear you correctly that the 504 Loan is not currently available (Congress did not approve)? Or was that just to refinance a current 504 Loan. Point me in the right direction. Thanks,

    • Chris Hurn says:

      That’s just in relation to refinancing. SBA 504 loans are alive and well and have been for nearly 30 years. If you have an opportunity for us to examine, Steve, let me know about it. Thanks.

  11. Joe Arie says:

    Great job Chris. Your comments are right on point.

  12. ;;David Wilson says:

    Chris: It may be good for the overall country but it appears to be serious for the Hampton Roads area in Virginia in which the military, mostly naval facilities may be hit very hard. Military here makes up 50% of GDP and this is a quite large area. The Newport News Shipyard may have to stop work on renovating 2 aircraft carriers and cancel contracts to 2000 small businesses across the nations that supply parts for this activity. Also there are several other shipyards in the area that may be shut down for a while, at least, putting out of work many of their workers. If it happens as expected it could be very bad for a lot of small business, not only here but across the nation that support these activities. Thats just some of the military operations in this area, such as Langley Air Force Base, Fort Eustus, Oceana Air Base, the Navel Base & Air Station, Little Creek Amphibous Base and the Naval Shipyard. Hopefully it won’t as bad as it sounds but it doesn’t sound good to me.

    For the record I am retired and actually not a prospective client for you. Sorry!

    • Chris Hurn says:

      Thanks for your comments, David. I share your concern about the military and their contractors being disproportionally hit hard, but I also know that a prudent business practice is to diversify your revenue streams (something many government contractors don’t often do) and that the DOD’s budget has doubled over the past ten years. Slowing the rate of the increase in spending (as this Sequestration does… by 2% this fiscal year, for the record) won’t be as catastrophic as the Chicken Littles are saying. Yes, some areas will be more hit than others, but diversification and good planning could have prevented a lot of pain… of course, actual sound governing might have too. :) I maintain that we cannot keep federal spending at these inflated levels and every reasonable voter, deep down somewhere, understands some belt-tightening is in order.

  13. Ray B hall says:

    i agree with what your saying but i do not need all this advertisment for your book i would rather it came from the heart if im going to believe it our anyone else is too

    • Chris Hurn says:

      I’m not sure why you think 15 seconds of gratitude to those who’ve purchased my book at the beginning of 7-minute a videoblog on the Sequestration and its impact on small businesses is “all this advertisement,” Ray? I think virtually any time you express gratitude, it comes “from the heart,” which is what I was doing. I’m not sure how or when you got on our list, but we’ll swiftly remove you, should you wish us to.

  14. John Osmer says:

    I’m fed up with both the two big political parties.
    Not only would I like to see this country live within its’ means, but also come up with a plan to pay off the national debt.

    • Chris Hurn says:

      Agreed, John.

  15. small business loans says:

    May be business cash advance lies on credit score.Its a another financing option offered by small business loan program.Now Business owners can Apply for a 504 loan programs in person or online.That seems to be nice idea.


  16. Sean says:

    Got a copy, need your help soon!

    • Chris Hurn says:

      Thanks! Happy to try to help.

  17. Keith A. Wilcox says:

    I agree!!!

  18. John Thompson says:

    The sequester may be the ONLY way to get the federal gov’t to cut spending – which MUST be done.

    • Chris Hurn says:


  19. Tim says:

    Well stated and to the point. “Leading” by fear, intimidation and diverting from reality has become a consistent pattern. There are many of us who are NOT low information voters and understand what is happening right before our eyes. First and foremost, we should demand that the Senate submit a budget which they have conveniently not submitted in four years! We cannot allow the elected officials, who work for us, to constantly manage in a crisis mode. If I was in the audience at a recent stop with the President, I would have raised my hand and said…”if these budget ‘cuts’ are so monumental and catastrophic then why are you here in(pick a city) and not back in D.C.? Mr. President, stop campaigning…get to work.”

    • Chris Hurn says:

      Well said, Tim. :)

  20. Dee Toohey says:

    I always ask those who tell me the world would end if it happened why they think that. They have no answers. It’s monkey hear, monkey say/write. They need a new source of information! It’s going to be a good year for small business!

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