Five Key Priorities for Supporting Small Businesses in America
In a recent address, the President emphasized the importance of supporting small businesses as key drivers of economic growth and job creation. As the 119th Congress convenes, there is an opportunity to focus on several vital areas that could significantly benefit Main Streets across the nation. Below are five strategic priorities that could enhance support for small business owners in the U.S.
1. Reforming the Tax System for Small Businesses
With the impending expiration of certain provisions of the Tax Cuts and Jobs Act (TCJA), Congress is poised to revisit and potentially reform these regulations. A recent survey revealed that 80% of small business owners felt the TCJA did not adequately support their growth objectives, particularly in hiring and investment. This reauthorization presents a chance for lawmakers to craft a more effective tax package that addresses the unique needs of small business owners.
2. Securing Affordable Health Care for Employees
The Affordable Care Act (ACA) has played a crucial role in reducing the uninsured rate for employees in smaller firms—from 25.2% in 2013 to 16.3% in 2022. This progress can be attributed to the ACA’s Advanced Premium Tax Credits, which are set to expire at the end of 2025 unless Congress acts. Protecting these credits is essential to maintain affordable health coverage for small business employees and their families, preventing substantial increases in premiums.
3. Ensuring Sustainable Disaster Funding
Recent natural disasters have underscored the need for reliable funding for the Small Business Administration’s (SBA) disaster loan program. After significant hurricanes caused widespread damage, the SBA’s loan funds were exhausted, delaying assistance to affected businesses. To enhance readiness for future crises, Congress must ensure that the SBA has ongoing access to disaster relief funding, enabling timely support to businesses grappling with unexpected challenges.
4. Promoting Nearshoring Initiatives
As businesses increasingly consider shifting operations back to North America, nearshoring to Canada and Mexico has gained traction. This approach can mitigate supply chain vulnerabilities while fostering economic integration among the three countries. Despite recent tariff discussions, there exists a substantial opportunity to enhance collaborative economic policies that benefit companies engaged in cross-border trade.
5. Advocating for Supportive Government Policies
To bolster the competitive landscape for small businesses, Congress can implement essential measures, including expanding tax credits for working families, creating flexible benefits systems, and developing retirement plans that align with the realities faced by small business owners. Additionally, improving transparency in lending practices and providing targeted loan options can create a fairer playing field for both emerging and established small businesses.
The past four years have seen a surge in entrepreneurial activity, with small businesses accounting for over 70% of net new job creation since 2019. By focusing on these five priorities, lawmakers can cultivate an environment that fosters innovation and growth, ensuring that small businesses continue to thrive and contribute to the economy.
