OHIO — Time is ticking away for Congress to raise the debt ceiling, so it doesn't default. 

What You Need To Know

• Big businesses may be able to handle a potential default better than small businesses 


• Small businesses can expect interest rates to rise if the U.S. defaults on its debt 


• Lending to small businesses and those trying to start a business would slow 


• For questions, click here or call 614-228-4201

“Even a short-term default could raise interest rates and that would result in small businesses having increased costs on their interest if they have any borrowing or anything like that," said Steve Stivers, president and CEO of the Ohio Chamber of Commerce.

While small businesses already struggled during the pandemic, with some closing, he added that, “Bank lending would absolutely slow down as a result of this, which means anybody who wants to start a business would be potentially stuck in limbo.”

The goal, if there is a default, would be to work with policymakers to encourage both sides to come to the table to get a deal. 

For the time being, Stivers noted the chamber has been having conversations with its financial services members about what needs to be done to make sure small businesses and the lending community are prepared for what the U.S. may face.

“I'm doing a lot of planning and I know a lot of small businesses are doing the same thing," he said.

For those who may need a little extra help in working through this time, Stivers said the chamber welcomes phone calls to help them be ready.