IMPORTANT UPDATE: Potential Default on U.S. Debt and Actions for Small Business Owners - Palma Financial

We have received numerous inquiries, and I want to urgently bring to your attention a matter of utmost importance that could have far-reaching consequences for our economy and small business.

The U.S. government’s potential default on its obligations is a significant threat that demands immediate action.

Immediate Financial Obligations at Risk: 

If Treasury Secretary Janet L. Yellen’s current timing estimate holds, the following payments are at risk:

  • $12 billion in military and civilian retirement benefits are due on June 1.
  • $1 billion in tax refunds is scheduled for June 7.
  • $4 billion in federal salaries, payable on June 9.
  • A government default could result in a collapse of stock markets, leading to financial turmoil and uncertainty.

Furthermore, a potential government default could lead to severe financial outcomes:

  • Retirement savings, 401K plans, college funds, and investments could be adversely affected, impacting personal finances.
  • Federal programs like Social Security, Medicare, Medicaid, veteran benefits, and SNAP benefits may face disruptions, potentially affecting millions of Americans.
  • Increased interest rates on mortgages, credit cards, and auto loans can potentially raise the cost of borrowing and create financial pressure for individuals.
  • Small businesses may experience challenges as banks may reduce lending, making it harder to secure loans or obtain favorable interest rates.
  • The risk of a recession looms, potentially leading to job losses and hardship for businesses.

Let’s discuss the potential implications for your business and explore strategies to mitigate the impact.

Schedule your appointment here!