Small business issues are Pa.’s issues in ‘24 election

Small businesses employ nearly half of America’s workforce. As we approach November’s election, we’re flooded with phone calls, mailers, billboards, polling, and political rhetoric. But what business owners across the country truly need is for both Republicans and Democrats to address the issues we face, listen to our needs, and offer common-sense solutions.

Despite our differences, certain challenges affect us all—access and affordability of childcare, the rising cost of goods and inflation, and access to capital. Small businesses also need more support when contracting with the government.

One of the biggest struggles for many small business owners is finding affordable, reliable childcare for their employees, especially during the school year and over breaks. Many schools—public and private—have adopted hybrid schedules or offer limited access to after-school and summer programs. This creates a challenge for small businesses, as employees are often forced to choose between work and their family’s needs. We have modified our schedules and provided accommodation for our employees, but it can limit the capability of business.

In a recent survey by Goldman Sachs 10,000 Small Businesses Voices, 58% of small business owners said they’re continuing to hire, but 80% reported difficulties in filling open positions. One-third of respondents shared that their employees have been forced to limit their availability or leave their jobs altogether due to the lack of affordable childcare.

Policymakers should unite behind legislation that increases the tax credit available to businesses that provide or support childcare for their workers, raising the current cap from $150,000 to $500,000. This proposal received 70% support from small business owners surveyed.

The cost of doing business continues to rise, forcing small business owners to make difficult decisions: either raise prices to keep up with inflation or absorb the higher costs, shrinking already-thin margins. A lack of working capital can halt expansion, prevent hiring, and stall reinvestment. In the worst cases, it can lead to business closures. On September 9th I spoke on a panel with other business owners at the Pennsylvania Small Business Empowerment Summit, and access to capital remains a common issue.

For those who qualify for loans or lines of credit, rising interest rates have made borrowing money even more expensive, leaving owners unable to secure the funding they need.

While lowering interest rates isn’t an immediate solution Congress can deliver, there are steps lawmakers can take to help small businesses weather this period of inflation. One key step would be modernizing the SBA and expanding access to capital. Loan decisions should heavily consider factors such as the number of employees, job creation potential, cash flow, past performance, and accounts receivable.

The SBA should also be allowed to guarantee a larger portion of these new loans, ensuring that banks aren’t hindered by strict underwriting processes, especially for businesses in “high-risk industries.” This would encourage more lending and provide crucial support to small businesses that might otherwise struggle to secure funding.

In 2025, when tax policies are reconsidered, we need to pass a tax code that supports small business growth and eliminates burdensome regulations that create unnecessary barriers.

The U.S. government is the largest purchaser of goods and services in the country. However, so many small businesses are unable to serve the government because the process is often too complex, cumbersome, and designed in favor of larger corporations.

Policymakers can help by simplifying the small business certification process, making it easier for businesses like mine to get in the door, scale and compete. More technical assistance to navigate the procurement process can ensure opportunities aren’t dominated by large companies. By raising the federal government’s sole-source and simplified acquisition thresholds, we can level the playing field and create more opportunities for small businesses.

Small businesses are the backbone of America’s economy. We create jobs, invest in our communities, and breathe life into our commercial corridors. At a time when many Americans are hoping for bipartisan efforts that yield meaningful results, a good place to start would be listening to the small business owners driving economic growth. It’s time to reach across the partisan divide and support America’s small businesses.

https://lvb.com/small-business-issues-are-pa-s-issues-in-24-election/