The White House and congressional Republicans have yet to reach a debt ceiling deal, and the possibility of a US default looms on the horizon. Business owners, along with the rest of the country, are in wait-and-see mode, bracing for a possible recession and job losses in the event of a prolonged default. But there are some things they can do to prepare.
Smaller businesses in this position might not need to hold weekly meetings, he said. But they might want to consider holding onto more cash, and perhaps diversify into holding non-US currencies in case the value of the dollar falls. A government default would likely push interest rates up, making it more expensive to borrow money. “Having a strong cash position now I think would be very helpful,” White said. Companies can do that by hitting pause on big projects.