What Small Businesses Need to Know in 2025: Shutdowns, Tariffs, and the AI Advantage

At the 2025 CO–100 Small Business Forum, U.S. Chamber of Commerce Executive Vice President and Chief Policy Officer Neil Bradley outlined the landscape small businesses are navigating this year, from the government shutdown and rising tariffs to the accelerating adoption of artificial intelligence.

Government Shutdown Impacts
The federal government shutdown that began on October 1 has left many small businesses in limbo. Federal contractors are going unpaid, and SBA loan approvals are frozen, delaying access to critical capital. Beyond financing, the shutdown has also paused key permitting and grant processes, disrupted agency communications, and slowed payments tied to federal programs that many communities depend on.

“Shutdowns are choices. This is a bad choice – and hopefully our elected officials will realize that quickly.”

– Neil Bradley, U.S. Chamber of Commerce Executive Vice President and Chief Policy Officer

Despite the disruption, Bradley noted, the national economy remains resilient. However, while a recession doesn’t appear imminent, political gridlock continues to slow potential growth. Some of the finer points in this discussion include:

• Tariffs now average 18%, acting as a $600 billion tax on the economy.
• The One Big Beautiful Bill has stabilized key tax provisions for small businesses, making investment and R&D deductions permanent.
• New childcare tax incentives are helping employers expand local options for working parents.
• Ongoing immigration policy shifts are creating uncertainty in the workforce, as many longtime employees lose legal work authorization.

The U.S. Chamber continues to advocate for policies that sustain growth and expand the workforce by allowing more people to work legally in the U.S.

The AI Opportunity
While policy challenges persist, innovation continues to propel small businesses forward. Chamber research shows 58% of small businesses now use generative AI – more than double the share from three years ago. AI tools are helping small businesses improve productivity, manage labor shortages, and reach new markets. “Small businesses are rule breakers in a really good way,” Bradley said. “They’re doing the innovative things large businesses won’t.”

Essential Resources for Small Businesses
As national policy debates unfold, local entrepreneurs can find real-time tools, guidance, and support through the Springfield Chamber’s Small Business Solutions Hub – connecting members to essential information, workforce resources, and technology insights to help them stay competitive and resilient.

See the Neil Bradley interview in its entirety on the digital Hub in the Things You Need to Know section.