Published
October 29, 2025
Carol Houston, founder of BaysMartin Consulting, says the ongoing government shutdown is preventing her from realizing her vision for her startup, which is to help companies bridge the chasm between innovation and regulation in the complex life sciences sector.
Houston’s company is in growth mode—or would be—if it weren’t for the government shutdown.
Her small business is a consultancy in the biotech industry. It supports clients at various stages of product development, helping them navigate the complex world of regulatory approval involving pharmaceuticals, healthcare laboratories, and medical devices.
The business is expanding and her next growth phase is centered around a pending patent in the AI space.
Waiting and waiting
Although the Patent and Trademark Office is open and operating, Houston says the approval process is slower during the shutdown and she’s anticipating that moving the patent forward will be hindered.
In addition, the main SBA loan programs for small businesses are not processing applications, meaning an estimated 320 small businesses nationwide are unable to access $170 million in SBA-backed commercial loans every business day. Also, congressional authority for the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs expired September 30. Houston had hoped to access those programs to secure funding for her small business, but those grants may now be delayed, cancelled, or rescinded.
“I’m really not able to move forward with the business plan that I have,” said Houston. “We were just about to move forward and submit to the SBA for a loan. I was going to utilize that to leverage any additional seed money that I would need to grow my business. But you can’t apply. All Fed grants like SBIR/STTR are halted. You can’t do anything.”
Houston also currently works as an independent biotech contractor, advising companies on how to file their applications with the U.S. Food and Drug Administration (FDA)—which can be a complex technical, legal, and regulatory process. But with the FDA only continuing mission-critical work until the shutdown ends, most of that consulting work has dried up.
“With the uncertainty, the shutdown, and lack of FDA reviews, who needs my help?” Houston asked. “I need some work in my area of expertise to sustain myself or it’s going to start looking pretty bad here.”
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Pressing pause on new hires
Houston says that if she had been able to move forward with an SBA loan and SBIR/STTR grants were available, she would have already hired a small team. But with the shutdown blocking forward movement, those hires, and more, are on hold.
“I was going to start validating the minimal viable product, hire some technical experts, and plan out the first stage of the product development process,” Houston said. “I have people waiting for me. They love the idea. I’m a small business and have limited resources. I have to rely on proving my case.”
In fact, Houston is increasingly concerned that the chance for her concept to succeed may be slipping away as the government shutdown clock ticks on—and AI competition races ahead.
More Small Business Voices
Ending the shutdown
Houston says it’s past time that the shutdown ends so she can move the next phase of her business. She’s hopeful that both sides in Washington can recognize the economic harm being done, talk to one another, and find a way to end the shutdown—the sooner, the better.
“If I can’t generate money, I can’t pay my mortgage,” Houston said. “We need to get to some sort of compromise that is in the benefit of the American people and small businesses. If you keep putting up roadblocks for us, we’re just not going to survive.”
When the government partially shut down in 2018, it reduced economic output by $11 billion in the following two quarters, including $3 billion the U.S. economy never regained, analysts estimate.
The Chamber’s Senior Vice President of Small Business Policy Tom Sullivan breaks down the potential impacts to small business contractors, Small Business Administration (SBA) loans, business travel, and more.
Shutdown Resources
About the author
Thaddeus Swanek
Thaddeus is a senior writer and editor with the U.S. Chamber of Commerce's strategic communications team.
