US small business

Subterms

    Latest story

    150 Shares119 Views

    Fellow Republicans, it’s time to admit that the US economy isn’t bad

    by

    The Republican primaries are under way and – not surprisingly – the candidates have been ganging up on Bidenomics. Spoiler alert: they don’t like it. Fact check: they are wrong.To a man – and one woman – the Republican candidates all say that the US economy is bad and that Americans are struggling financially. They’re warning about sky-high deficits, over-the-top government spending and a potentially catastrophic level of national debt. They point out that interest rates are at a 20-year high and the costs of core things like food, gas and housing are significantly more than they were just a few years ago. They point to a downturn in manufacturing and falling small business confidence.“Bidenomics is crushing American families,” said the Republican candidate Nikki Haley. “We’re paying more for gas, groceries and other basic necessities.”“I’ll rip up Bidenomics on day one of my presidency,” the Florida governor and presidential challenger Ron DeSantis warned.Yes, prices and rates are up. But really? Is the economy so bad? I’m a Republican and a small business owner with hundreds of clients in many industries and honestly the economy isn’t that bad. In fact, it’s been really, really good.Just ask Donald Trump, who implicitly admitted this when he recently said he hoped for a “crash” and that it would “be in the next 12 months because I don’t want to be Herbert Hoover”.If you don’t believe me, just look at the numbers.Last quarter’s gross domestic product showed growth of 5.2%. That’s a number that dwarfs all other pre-Covid recovery numbers in recent memory. Unemployment is at a record low. Each month the economy is adding hundreds of thousands of new jobs. There are millions of more open jobs available today compared with 2019.Yes, prices are higher, but inflation is down from a 9% annual rate to about 3%, so whatever the Federal Reserve did to offset the treasury’s spending on fiscal programs seems to be working. The stock market is near all-time highs, as is household wealth. Credit card delinquency rates are lower than they’ve been for the past 30 years as are delinquencies on all loans across the banking system. Holiday retail sales were strong and online sales boomed. Plenty of capital is available for businesses that need it and corporations have more cash on hand than in any year before the pandemic.skip past newsletter promotionafter newsletter promotionI speak to dozens of industry associations each year and here’s what I’m hearing: just about everyone had a good 2023. The CEOs of our major banks reported strong earnings, after taking into consideration special assessments and one-time charges. Retailers and restaurants have recovered from the pandemic. Convention traffic in Vegas is back to normal. There are almost as many travelers through the airports as there were before Covid. Businesses in the service industries recorded their 12th consecutive month of growth.Sure, there are struggles. Businesses in the real estate industry are challenged by high housing prices and a 13-year low in home sales. Manufacturing has been in contraction for the past 14 months. Media companies are flailing. Technology firms are struggling to find financing. The cost of capital is slowing down financing for small businesses. However, we live in a giant country. California’s economy is as large as that of the entire United Kingdom. North Carolina’s economy is bigger than Sweden’s. Texas’s is bigger than Canada’s. Not every business is going to be doing well in an economy this size. There will always be those that are struggling, be it because of their location, their industry, or the makeup of their customer and supplier base.There are plenty of things that could knock things off course in 2024. Wars. Oil prices. A terrorist attack. Another pandemic. If you want to find the bad in the economy you can do it. And that’s what all the Republican candidates are doing and fair enough, it’s an election year. It’s also true that Bidenomics may not be the reason behind our strong economy. But saying the US economy is bad just isn’t true no matter who you vote for. More

    More stories

    • 188 Shares109 Views

      in US Politics

      Cannabis firms are cut off from the US financial system, but relief is in sight

      by

      Imagine that you run a perfectly legal business but are unable to open a simple checking account at a national bank. Believe it or not, that’s the case right now for anyone licensed to sell cannabis in the US. Given the size of the cannabis industry, it’s pretty shocking. But it may be about to change.In the US, 38 states have legalized marijuana for medical use and 23 of them have legalized it for recreational purposes, including three territories and the District of Columbia. An additional eight states have decriminalized its use. Both red and blue states with legalized marijuana laws have collected $15bn in tax revenue between 2014 and 2022, with $3.77bn in tax revenue attributed to 2022 alone.Meanwhile, if you run a cannabis business – one that sells, distributes, manufactures or in some cases serves the industry, you’re not allowed to be a normal business.Meta, Facebook’s parent, only allows “limited” CBD and hemp advertising. Cannabis companies can’t run TV or radio commercials for their products. They are not allowed to conduct any campaigns outside their state as interstate commerce is forbidden. In Ohio – like other states – they can’t run a billboard campaign without prior approval of the state’s board of pharmacy. Many localities have zoning laws that prohibit them from operating. Many insurance carriers are reluctant to serve the industry as do a number of the country’s largest payroll service providers.Cannabis businesses are not allowed to deduct rent, payroll or other expenses that other businesses can write off. They regularly face expanded business licensing requirements. They can’t take advantage of the federal bankruptcy rules. They can’t trademark their products.And then there’s banking. Cannabis businesses can only choose from about 200 independent and community banks. I don’t mean to throw shade on these organizations, because many of them are excellent. But they oftentimes don’t offer online banking, international access, wire transfer, investment options, financial stability and other capabilities of a larger institution. When it comes to the cannabis industry, federally chartered banks like Wells Fargo, PNC Bank, JP Morgan Chase, TD Bank and Key Bank are not playing ball. Because of this, many cannabis businesses receive fewer financial services and have been forced to retain an uncomfortable level of cash, making themselves exposed to theft and crime. The banking industry realizes this but resists.Why is this? Because cannabis is still considered to be an illegal controlled substance, subject to very strict federal laws and, because it’s illegal at the federal level, many large corporations, such as banks, insurance companies and payroll services, remain spooked.It’s no surprise that, despite all the growth, many in the cannabis industry are struggling to make profits. But there’s potentially good news on the horizon. Finally, the federal government may allow banks with federal charters to do business with those in the cannabis industry.At the end of last month the Senate committee on banking, housing and urban affairs moved forward with the Secure and Fair Enforcement Regulation (Safer) Banking Act, which allows banks to conduct business with cannabis companies. The House already passed a similar act, so the Senate committee’s approval is a big deal.“This legislation will help make our communities and small businesses safer by giving legal cannabis businesses access to traditional financial institutions, including bank accounts and small business loans,” the bill’s sponsors said in a joint statement. “It also prevents federal bank regulators from ordering a bank or credit union to close an account based on reputational risk.”skip past newsletter promotionafter newsletter promotionStill, significant hurdles exist. There remain a number of representatives in both the House and Senate who oppose the bill.“This legislation also compromises the integrity of the United States banking system by giving banks government approval to participate in illegal activity, setting a dangerous new precedent,” some Republican senators said recently in a joint statement. “Allowing banking access to a Schedule I drug sets a dangerous legal precedent and will help facilitate money laundering for drug cartels.” This opposition, combined with a leadership void in the House, could derail progress of the bill for the foreseeable future.But I’m more optimistic. The bill is not going so far as to legalize marijuana, so that should appease some of its opponents. And given the strong bipartisan support received in both the Senate and House for the Safer Banking Act, I don’t believe it’s an overreach to expect passage … eventually. When? Who knows.In the meantime, those in the industry must wait. And fight. And deal with restrictions that few other legitimate companies have to face. It’s tough enough running any business. But for those in this game, it’s a whole new level altogether. More

    • 200 Shares99 Views

      in US Politics

      $80bn for the IRS? Fund the US taxman, but not like this | Gene Marks

      by

      Ask any accountant and we’ll tell you that the Internal Revenue Service is woefully underfunded. Our clients complain about the long delays for refunds, the interminable waits for getting answers and the frustrations waiting for guidance on issues that affect their businesses.But it’s not just accountants that are clamoring for more IRS funding. Most taxpayers I know will admit that the IRS needs a serious upgrade. So why the big brouhaha over the $80bn approved last year to hire more auditors and upgrade the agency’s pathetically outdated systems? The answer lies not in why it’s so badly needed. It’s in how badly it was sold to the American public.We all pay for things we don’t like. We need to have insurance but we don’t like the premiums. We don’t really want to give a wedding gift to that fifth cousin or tip the waiter even though the service wasn’t that great. And of course, we pay taxes – and no one likes that either.The same goes for the IRS. We know that everyone should be paying their fair share and we get that there has to be a government agency to oversee this. Making sure the IRS has adequate funding is a no-brainer. And yet here we are arguing over its need. For this, I blame President Biden and the Democrats.The bipartisan Tax Foundation found that the costs to collect $100 (in 2021 dollars) has decreased 41% since 1991 and that during this same period, the amount collected per taxpayer has increased 45% and that the agency did this despite its much lower staff. These are impressive accomplishments when you consider that most of the agency’s systems are decades old.Even so, Republicans and the media pounced on the $80bn allocated under the Inflation Reduction Act to be used for hiring more auditors and technology upgrades which could potentially save more than $1tn per year. And during recent talks to raise the US borrowing limit, Republicans somehow managed to claw a quarter of that amount back with plans to pursue more.Most people in both parties understand the necessity to fund an agency whose sole objective is to ensure that everyone pays their fair share of taxes. But you can’t really blame Republicans for crying foul. This is what politicians do when there’s a slam-dunk issue like this. Big government: bad. Small guy taxpayer: good.But there was a better way for the Democrats to achieve this funding, which, according to the Cato Institute, will increase the IRS’s budget from $5.2bn to $19.5bn by 2033 – about $1.4bn per year, which is just one-half of one percentage point of our country’s overall spending.Why not bury some of this amount in the overall treasury department’s annual budget of $3.24tn? Over a 10-year period that funding could have been absorbed by the numerous subdivisions of the agency and then re-allocated back to the IRS in that bureaucratic way that bureaucrats do where no one really knows where or how the money was spent.Or how about trying what any business owner would do when appropriating money to a project: assign quantifiable metrics and holds its recipients accountable? Make it such that the spending could be paused or even pulled unless these numerical goals are achieved each year. That way the Republicans could insist they’re holding their opponents’ feet to the fire, while the Democrats still get to spend the money.Or you could take a pure tech angle and take people out of the equation. Remove and prohibit the “hiring” of new auditors and instead mandate that the funds only be used for technology. Better yet, AI technology because that’s what’s hot! Emphasize that the IRS is going to be the federal government’s leader in tech, reducing its headcount and increasing its output and responsiveness by leveraging the latest AI tools as it upgrades its systems. Of course, some may be scared by the prospect of out-of-control robots but it’s obvious to most of us who regularly deal with the IRS that – probably more than any other agency – most of what it does can be automated.But no. Instead, Biden and the Democrats allowed an inordinate amount of attention to be drawn directly to the $80bn for the evil IRS, which in turn invited a tidal wave of backlash. This didn’t have to happen. With a little bit of thought, some maneuvering, finessing and manipulation, that money – which is sorely needed – could have been spent under the radar and much of this controversy could have been avoided. More

    • 125 Shares149 Views

      in US Politics

      ‘Bidenomics’ is a business opportunity. But who can cash in?

      by

      This past week Joe Biden gave a speech in which he touted his economic policies and, rather than deflecting, he leaned into what many of his opponents called “Bidenomics”.Bidenomics is the opposite of “trickle-down” theory, which holds that tax cuts to wealthy individuals and corporations ultimately find their way to the rest of the population through more spending and investment. For the president and his supporters, Bidenomics means government spending and investment in infrastructure and services that create jobs and growth.“I didn’t come up with the name, I really didn’t,” he said in his remarks. “I now claim it.”If you’re a small business owner or an entrepreneur a president’s economic policies – assuming they can get congressional support – really do matter. This is not to claim that Biden’s economic agenda will be any more or less successful than his predecessors’: for many the trickle-down v spending debate will never be resolved. But when a president sets an agenda it reveals where money will be spent. And my smartest, most experienced clients are watching closely. Why? Because regardless of where they stand politically, what’s best for their business is always, always, always to follow the money.They know that when you own a business your job is to create value and build an organization that provides a livelihood for all the people that rely on you. This includes your customers, your suppliers, your partners and of course your employee and their families, as well as your family. Which means that you put politics aside (until it’s time to cast your vote) and instead you follow the money. Get it?So where is the Bidenomics money going?For starters, there’s almost $300bn going towards building chip manufacturing plants under the 2022 Chips Act. There’s also another $391bn that’s being spent on companies that are improving their energy efficiency and making greener products under the Inflation Reduction Act. A trillion dollars is being expended on roads, buildings and other infrastructure projects thanks to the 2021 Infrastructure Act. That’s about $1.7tn, which is a lot of money. The president is also telling us that more will be spent on affordable healthcare, social services and education.That’s where the money’s going over the next few years and even more will be spent if he wins re-election in 2024. When it comes to your business, it doesn’t matter whether you agree with these policies. What matters is that you take advantage of them for the benefit of your business. So how are my clients doing this?If you want to sell products and services to the chip manufacturers and other players in the industry (and the most active ones – like Intel, Samsung, GlobalFoundries and Skywater Technologies – are already in line for the funding) then target these companies and their projects and consider what products and services of yours can be sold to them. Or you can do your research, identify opportunities and start filling out applications at places like the Department of Commerce’s Chips.gov, or at Chips Act which is a private organization that provides support for businesses looking for help writing grants and submitting proposals. Or you can go directly to the Semiconductor Industry Association or read the excellent guidance provided by Semi, an organization that supports companies in the electronic manufacturing and supply chain industries.If you want to get funding for energy-efficient projects or to help develop energy efficient products you should start with the White House Inflation Reduction Act Guidebook which lists dozens of government agencies that are doling out money to organizations of all sizes for just that purpose. The Department of Energy’s Office of Manufacturing and Energy Supply Chains has $6bn available for projects and, wow, you can’t get any more government-sounding than that, right? Or if you merely want to maximize your use of the expanded tax credits under the legislation visit the IRS’s Inflation Reduction Act web area.Maybe you want to get in on the $1tn infrastructure spending? The White House, Federal Highway Administration, Department of Energy and Department of Commerce all have funding opportunities related to the 2021 legislation.Follow the money. Start at any of the places I’ve mentioned above and get ready to go down the Federal Rabbit Hole.Finding this money, let alone applying, isn’t easy. Which is why many of my clients don’t do this. They’re lazy. My best clients – and I have a handful – have already hired summer interns whose jobs are to peruse the maze of government bureaucracy, identify opportunities and start filling out forms. Doing this takes time, effort, tenacity. If it was easy, everyone would be doing it.Even if you’re not in the construction industry you can still leverage Bidenomics. That’s because all of the companies that are getting funding will need your products or services. Chip manufacturing plants will have employees that eat pizza. Highways have buildings that need to be cleaned. “Green” products need to be transported. People in these industries getting all that money will need accountants, lawyers, architects, marketing professionals and workplace consultants.Bidenomics. Obamacare. Supply side. Trickle down. These are just words. Political phrases to create headlines and catch the attention of voters. Smart business owners know this. They don’t get distracted by these terms. And they don’t let their politics muddle their strategies. What they do is follow the money. And my best clients have taught me that whether you’re a fan of Biden’s – or any president’s economic policies – there’s always plenty of money and opportunities to pursue if you just follow the money. More

    • 200 Shares109 Views

      in US Politics

      A US debt default could crush small businesses. So what can we do? | Gene Marks

      by

      The US is careening towards a debt crisis the likes of which we haven’t seen since 2011 when Barack Obama faced off against the Tea Party. No one knows for sure if the federal government is going to default on its debt by the end of this month. But if Democrats and Republicans can’t agree on a compromise, it will have an enormous impact on small businesses around the country.Some 65% of small businesses believe they would be negatively affected by a default, according to a recent report from Goldman Sachs. This is very bad news. Small businesses accounted for 45% of all private-sector jobs in the first quarter of 2022.The first small businesses that will be affected will be those that contract directly with the federal government. Tens of thousands of small businesses received more than $154bn in federal contracts in the fiscal year 2021 – about 27% of all government contract spending that year. And this doesn’t include the small businesses that indirectly received funding from larger construction and other firms that get government money and sub-contract out work to them. If Janet Yellen is forced to prioritize interest and debt payments above all else, then these federal contracts would be suspended and the negative cash flow impact on these small firms would be substantial. Let’s remember: almost half of small businesses have less than three months of cash on hand.Then there are the small businesses that service government properties. A report from the Cato Institute estimates that the federal government owns or leases more than 350,000 buildings and properties around the country. These facilities are a critical revenue source for countless small firms that perform construction, maintenance, security, cleaning, electrical, landscaping and other kinds of services, all which would be potentially interrupted. The employees that go to these buildings every day rely on neighboring businesses for their lunches, dry cleaning, yoga, happy hours and other products and services. If ordered to stay home, these businesses – already reeling from the number of employees now working remotely – would suffer a significant blow.Then there are government functions. Individuals and small business owners rely on many areas of the government for services. They’re applying for passports, questioning the IRS, waiting on regulatory approval and loan guarantees from the Small Business Administration. These and many other critical government services could be suspended if funding is re-directed.These are all immediate effects of what would happen if the government must avoid a loan default. The longer-term effects are even more devastating. If the situation persists credit and financial markets will be volatile and banks will be forced to limit financing to only the most secure (and usually) largest of their customers, which means many small businesses seeking loans will either have to wait or be denied. The Goldman Sachs study found that 77% of small business owners they surveyed were already concerned about their ability to get loans.According to the White House, a default lasting more than three months would cause a significant recession with as many as 8 million people losing their jobs. The stock market – where small business owners park a significant amount of their retirement savings and collateral – could collapse.All of this could not come at a worse time for small businesses. Optimism among business owners – as determined monthly by the National Federation of Independent Businesses – is already at a 10-year low. Bankruptcies are ominously on the rise too, with one research firm reporting a 20% increase in filings from a year ago. An extended shutdown would make these numbers much worse.If you’re a small business owner, what can you do?It sounds obvious but it’s a fact that my very best clients are always thinking ahead. So the first thing you should be doing is preparing. A federal default or shutdown may not happen at all, but that doesn’t mean you shouldn’t be ready for such an event by the end of this month.That means hoarding cash, confirming your credit availability (including credit cards) and communicating with your customers, suppliers, employees and partners. No one should be surprised by your actions – like delaying payments – if a shutdown occurs. They should know that this is something you may be forced to do and they should know this well in advance. The more you tell them of your plans the better they can also plan and the more appreciative they will be.Also, and this is probably no consolation for businesses right now, is to take away an important lesson: diversity is important. If your business relies too much on any one customer (ie the federal government) then once this problem is behind us you should be making it a priority to diversify your customer base. Too much dependence on one source of revenue is too big a risk and even the federal government can’t be relied on to pay its bills on time – or at all.The silver lining in this dangerous, avoidable situation is that it would take time for things to get really, really bad. Although Yellen warns of a default by the end of May, she does have options for at least funding major parts of the government. And quarterly tax payments – expected by mid-June – could help stave off disaster for a while longer. But none of this should stop a business owner from thinking about the consequences now and preparing for this event. Even if we escape this time, given the acrimonious environment in Washington, we shouldn’t be surprised if something like this doesn’t occur again – and soon. More

    • 163 Shares159 Views

      in US Politics

      How the Small Business Administration’s new chief plans to make the agency known

      by

      Isabella Guzman is the new administrator of the Small Business Administration (SBA). And she’s got a long-term problem.No, it’s not about pandemic loans or the bottleneck in disbursing grants under other stimulus initiatives. It’s not even about catching fraudsters or approving applications. She has these problems of course. But that’s not the long-term problem.Guzman’s long-term problem has to do with awareness.“The SBA has always been the best kept secret in government, and we don’t want to be that,” she told me in a recent podcast interview. “We want to be known.”Right now most small business owners I know are only aware of the SBA because of the media attention received – both positive and negative – by being the middleman for various stimulus programs. But those programs are going to end this year. So what happens after that? What’s next for the SBA?For years, the department has struggled to get the word out about its services. And there’s no question that the SBA has many services to offer small businesses well and beyond dolling out loans and grants.“We know that government can be hard to navigate, and we’re trying to simplify our processes,” Guzman says. “Our customers are small businesses owners who have to wear so many hats and have so many responsibilities and need a team behind them.”What kind of team? There are the Small Business Development Centers, a network of free consulting agencies generally tied to colleges and universities which use professors and grad students as resources to help small businesses create business plans, do market research and evaluate technology. Or there’s Score, a long time, SBA-linked association of “retired” small business experts and owners who provide wisdom and advice at no charge. The SBA also has a myriad of educational programs and customer assistance resources that can help small businesses get government contracts or just better manage cash flow.Then there are the many guaranteed loan programs the agency offers through its lender network that can provide millions of dollars of working capital and other financing opportunities to buy property and equipment for small businesses who otherwise would not be able to fulfill normal banking requirements.And yet, when I ask my clients – who are mostly established firms – about the SBA I usually get blank stares. These clients aren’t aware of these options. They don’t realize they can get free consulting from university professors and retired CEOs or bank loans from lenders that wouldn’t ordinarily lend to them. Even the business owners I know operating in low- to moderate-income areas aren’t aware of the special services and funding available specifically for them. Or the more than a hundred women’s business centers throughout the country specifically devoted to the needs of female entrepreneurs.Why not? It’s awareness. The SBA has an opportunity to leverage the enormous PR it received during the pandemic and use it to make more businesses aware of all that it does. So how does administrator Guzman plan to do this?“We’re going to be looking at all of our programs completely and trying to apply a customer-first and technology forward approach as well as an equitable approach,” she says. “We intend to make sure that we’re meeting businesses where they’re at in their current situations and providing products and services that can best help them grow.”Specifically, that means hiring better and brighter people for her organization (“like Nasa” she says), increasing their partnering outreach to government departments, local organizations and chambers of commerce, and focusing on issues that are top of mind for many business owners, such as exit strategies.“Our small business development centers in particular are training up on ESOPs (Employee Stock Ownership Plans) and other types of alternatives for exit strategies,” Guzman says. “We know that it’s a big challenge to sell or hand down a business and we don’t want those businesses to disappear.”Finally, Guzman plans a greater reach out to communities of color and other areas where discrimination and lack of education is holding back on their opportunities. Her goal is to prevent “barriers from limiting entrepreneurship” and “to make sure that every type of entrepreneur from all backgrounds have the opportunity to pursue their dream of small business ownership”.Will the SBA be able to leverage its notoriety from the pandemic into a message that enables more small business owners to take advantage of all the resources it provides? Other administrators have tried this in the past, with mediocre outcomes. But Guzman has a chance right now to increase capitalize on what her agency has done in the past and make more business owners aware of the services it can provide in the future. Let’s hope she succeeds. More

    • 175 Shares199 Views

      in US Politics

      Three bills show Congress can deliver for small business despite divisions | Gene Marks

      by

      Three bills are working their way through Congress that can provide significant help for small businesses. Do you know what they all have in common? Welcome signs of bipartisan support for small business.The first is the 504 Modernization and Small Manufacturer Enhancement Act of 2021. This bill, which passed the House in mid-April and is awaiting a Senate vote, is designed to make the Small Business Administration’s (SBA) 504 Loan Program more accessible to manufacturers through certified development company (CDC) intermediaries. The manufacturers would be able to apply for the funding – which can be as much as $6.5m – if they can show that funds will be used for energy efficiency or aid in the revitalization of a disaster area. The bill increases the loan amount available for small manufacturers and relaxes some collateral requirements, as well requiring the SBA to provide training.Why is this bill important? Because it directs capital to manufacturers and leverages the underused CDCs. “Too many people are not as familiar with institutions like certified development companies,” says the Democratic representative Sharice Davids, a co-sponsor of the bill. “But they have a really great track record of servicing and helping small businesses who are either unbanked or underbanked.”Next is the Opportunity Zone Extension Act. Sponsored by the Republican representative Tim Burchett, this bill was introduced in the House in February and awaits a vote. It extends for two years the election and capital gain deferral periods for qualified opportunity zones (defined as an economically distressed community where private investments, under certain conditions, may be eligible for capital gain tax incentives).The bill incentivizes investments in small companies located in areas that need it the most. “If people don’t invest, the property falls into disrepair,” says Burchett. “But if there’s investment then jobs can be created, there’ll be more encouragement for further investments. I just think it’s a winning opportunity for our rural America and our inner-city America.”Finally, there’s the Microloan Transparency and Accountability Act of 2021. Passed in the House in September 2020 and re-introduced this year, the bill establishes a 5% technical assistance grant for certain financing intermediaries, including intermediaries who make 25% of their loans to rural small businesses.“It just really helps ensure that the Small Business Administration (SBA) gives rural small businesses access to micro loans,” Burchett, who also sponsors the bill, says. “I just don’t feel like people should be overlooked because of their location or maybe the color of their skin or the region that they grew up.”The bill also requires the SBA to report certain metrics related to the disbursement of microloans to small businesses.Yes, these bills all help small businesses – particularly small manufacturers, businesses in low to moderate income areas and rural companies – get more funding from the federal government. But there’s a bigger thing that these bills have in common: they’re very, very bipartisan.For example, the 504 Modernization and Small Manufacturer Enhancement Act of 2021 is co-sponsored by five Republicans (including Burchett) and three Democrats. The Opportunity Zone Extension Act has nine Republicans and two Democrats signed on. The Microloan Transparency and Accountability Act of 2021 has three Republicans and two Democrats on board.Unfortunately, these bills don’t get much media attention because they’re not headline-worthy. But for many small business owners, their passage could mean the difference between growth and stagnation, survival or demise.So, yes, political infighting makes a juicy story. But behind the scenes, there are some issues that both parties can agree on and one of those issues is supporting small businesses. More

    • 150 Shares199 Views

      in US Politics

      Biden swings by Pennsylvania in Covid relief tour and promises ‘more help’

      by

      Sign up for the Guardian’s First Thing newsletterJoe Biden stopped by a unionized, Black-owned flooring company in the battleground state of Pennsylvania on Tuesday to highlight how the provisions of his $1.9tn coronavirus relief package will help lift small businesses hurt by the pandemic, part of a cross-country campaign to promote the first major legislative achievement of his presidency.During his visit to Smith Flooring Inc, located in the Philadelphia suburb of Chester, Biden said the sweeping new law was a “big deal” and promised the owners: “More help is on the way – for real.”“We’re gonna be paying our employees,” James Smith, who co-owns the business with his wife, Kristin Smith, said of their plan for the relief checks. “We’ve been paying them. Since the first run of PPP, we decided we wanted to take that money and not lay anyone off. We put everybody in a group and said, ‘Look, we’re gonna do this for you as a team, we’re gonna get through this together.’”Biden’s visit to Smith Flooring, in a state he clawed back from Donald Trump in 2020, was his first stop on the White House’s “Help is Here” tour and comes a day after Biden announced that his administration was on track to mark two key milestones in the coming days: delivering 100m Covid vaccinations since his inauguration – far outpacing his initial promise to administer those doses in his first 100 days – and distributing 100m stimulus checks to Americans.The tour includes Biden, Kamala Harris and their spouses, Jill Biden and Doug Emhoff. Later this week, Biden and the vice-president will visit Georgia, another swing state that he narrowly won in 2020.During the visit, Biden explained how his plan would help small businesses like Smith Flooring, which saw its revenue fall by roughly 20% during the pandemic, according to the White House. The flooring company recently qualified for a federal Payment Protection Program (PPP) loan under an action taken by the president targeting businesses with 20 or fewer employees.Biden’s plan, one of the largest emergency aid packages ever enacted, will provide $1,400 direct payments to most Americans, send $350bn in aid to state, local and tribal governments, dramatically expand the child tax credit and spend tens of billions of dollars to accelerate Covid-19 vaccine distribution and testing.“Shots in arms and money in pockets,” Biden said in brief remarks on Tuesday. “That’s important. The American Rescue Plan is already doing what it was designed to do: make a difference in people’s everyday lives.“We’re just getting started.”Alawi Mohamed, the owner of a commercial strip in Chester, said the first loan given in last year’s coronavirus relief package had helped him stay afloat, but he was hoping Biden’s plan would give him a much-needed boost.“Everybody got affected by Covid-19. When they shut down everything, we got affected big time. Nobody was around and people were actually staying home,” he said. Now he said, he is “back to business, gradually, but everything came out good”.Also on Tuesday, Biden introduced Gene Sperling, a longtime Democratic policy aide, to oversee the implementation of the $1.9tn package.Democrats are increasingly confident that the stimulus package will boost their prospects in 2022, when they will attempt to keep their slim majorities in both chambers of Congress despite a long history of the president’s party losing seats during the congressional midterm elections.Every Democrat except one House member voted for the bill while Republicans unified against it.Republicans have attacked the plan as bloated, filled with liberal priorities that run far afield of the coronavirus response. But Democrats argue that the package will lift the nation from the dual crisis by rushing immediate aid to those hit hardest by the economic downturn and help ensure a more even recovery. They also say it will go further to tackle deep-seated economic inequalities, halving child poverty and expanding financial aid for families squeezed by job loss and school closures.Polling has consistently found that Americans favor Biden’s stimulus plan. According to a new CNN/SSRS poll released this week, 61% of Americans approve of the coronavirus relief package, while 37% oppose it.Haunted by their lashing in the 2010 midterms, Democrats now believe that they didn’t do enough to promote their sweeping stimulus package, shepherded by the new Obama administration and passed by Democratic majorities in response to the financial collapse.The House speaker, Nancy Pelosi, has touted the package as among the most consequential bills of her decades-long career, putting it on par with the Affordable Care Act. In a letter to colleagues after the bill was signed, she urged members to hold tele-town halls and send informational literature to constituents to explain how the bill could benefit them and their families.“We want to avoid a situation where people are unaware of what they’re entitled to,” Harris said during her visit to a culinary academy in Las Vegas on Monday. “It’s not selling it – it literally is letting people know their rights. Think of it more as a public education campaign.” More