Local small business can’t expand because of partial government shutdown

Local small businesses can't get loans to expand during government shutdown
Local small businesses can't get loans to expand during government shutdown(Ben Williamson)
Published: Jan. 11, 2019 at 12:34 AM EST
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CHARLOTTE, NC (WBTV) - The government shutdown is set to enter it’s 21st day on Friday, and local small businesses are starting to feel the impacts.

“What they are doing is stalling my business. One of the most important things in my life is to run this business,” said Brooks Troxler, the President and Owner of Trox Tech Inc.

Troxler owns the tech company that is currently based in Matthews and he employs seven people.

"I started my business out of my garage in 2012 and everyone called me crazy to start a business in that economy, but I had faith in being a Charlotte native,” said Troxler.

Since then, the company has moved to a building off of Sam Newell Road in Matthews.

“We are looking to hire new people. In this current property, we are really limited to how many people can fit into this,” said Troxler.

Troxler was set to start 2019 with moving into a brand new, larger, street front business in Charlotte. However, he needs a loan from the Small Business Administration to make that happen. The SBA is a federal agency that provides loans at low interest rates for small businesses.

“This is something a small business desperately needs. Not a lot of places give out loans to small businesses because they are uncertain,” said Troxler. “There are not many more options out there to get this type of loan.”

All Troxler and his business need is a ‘yes’ or ‘no’ from the SBA on whether they will approve the $550,000 loan. However, with the government shut down, they can’t get that answer.

“Without this loan and without the government re-opening, I will lose this property,” said Troxler.

The seller of the new property granted Troxler a 30-day extension which ends in two weeks. The seller also says other, larger companies are interested in the space and have the cash to pay now.

“The seller has come back and said there are other people that are interested in the property," said Troxler. “I have done everything on my part. All I have to do is have the government say ‘yes’ or ‘no’ and then I can go in, close and get to that property.”

If it does fall through, not only will he lose the property but he will lose the hours and money he has dumped into assessments, environmental fees, and appraisals.

“Getting an assessment of the property. Getting environmental reports. All of that is something that comes out of my pockets that is stalled right now. It is something that I don’t get back if this falls through,” said Troxler.

There are limited other options out there Troxler could try but those loans would have much higher interest rates. Interest rates that he would have to pay if the shutdown ends within the next several days.

“When you turn the news on and everything is just stalled with no movement going on and no talking, that means I don’t know where I am standing at,” said Troxler.

The hope was to be in the new property and the ability to hire four additional employees immediately.

“When we stop growing, we stop adding more employees. Right now, I cannot hire anymore employees because I do not have the space to do it,” said Troxler.

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