The 2025 Government Shutdown: What it Means for You

Because Congress has not yet passed a continuing resolution to fund the government, a federal shutdown is now in effect beginning October 1, 2025. For cideries, the most immediate impact comes from the significant reduction of 87% of staff at the Alcohol and Tobacco Tax and Trade Bureau (TTB). The TTB will continue only essential functions. These include processing tax returns with payments, handling urgent legal matters, securing federal property, managing essential payroll and accounting, and continuing criminal enforcement. Most other services—such as label approvals, formula reviews, and permitting—are paused until funding is restored. In addition, the Small Business Administration (SBA) is also functioning at 23% of its workforce, focusing on existing loans and Emergency Injury Disaster Loans (EIDLs).

Here’s what you need to know from the TTB:

• Label approvals are on hold. TTB will not review new Certificates of Label Approval (COLAs) during the shutdown. You can still submit applications, but they won’t be processed until funding resumes. Expect delays once staff return and begin working through the backlog.
• Formulas and permits are paused. If you need approval for a new formula, an ownership change, or a new location, those requests will sit in the queue as well. This can be especially disruptive for small and mid-sized cideries—the majority of U.S. producers—that often run on tight timelines and seasonal releases.
• Taxes and reports are still due. Even though most TTB staff are furloughed, cideries are still required to file operational reports and pay federal excise taxes on time. There may not be anyone available to answer questions until the government reopens, so it’s best to plan ahead.
• Expect a backlog. Once the shutdown ends, TTB will face a surge of pending applications. This could stretch timelines for weeks or months, especially for labels and formulas.

What you can do:

• Keep filing everything on time, even during the shutdown.
• Submit any pending labels or formulas now, so they’re in the system.
• Build extra time into your release schedules in case of delays.
• Communicate with distributors and partners about possible timing impacts.

Here’s what you need to know from the SBA:

• The SBA has halted processing new 7(a) and 504 loans, which are crucial for financing equipment, expansion, and working capital. This suspension affects all new loan applications, even those from lenders with delegated authority. 
• While new loan processing is paused, the SBA continues to service existing loans. However, borrowers should expect longer processing times and slower assistance due to reduced staffing.

What you can do:

• Cideries relying on SBA loans for expansion, equipment upgrades, or working capital may face delays in accessing necessary funds

ACA will continue to monitor the situation and keep you updated. Please don’t hesitate to reach out with questions—we’re here to help you navigate these disruptions. Contact ACA Government Affairs Manager Jenn Martell with questions.