Strengthening Main Street: The President’s Vision for Small Businesses

The President recently addressed the nation, outlining key priorities for his administration. Among the various goals, supporting small businesses stands out as an area that has consistently garnered bipartisan support. Recognizing the crucial role small businesses play in driving economic growth, the President emphasized the need for policies that empower entrepreneurs and foster thriving local economies.

Prioritizing Small Business Owners in Tax Reforms

Tax policies are a cornerstone of any economic strategy, and the upcoming reauthorization of the Tax Cuts and Jobs Act (TCJA) presents a significant opportunity to support small businesses effectively. While the TCJA has been in place for several years, many small business owners have not benefited from its provisions as intended. A staggering 80% reported that the act did not help them hire new employees or invest in their businesses. This disconnect highlights the need for targeted tax reforms that directly address the needs of small business owners. By updating the TCJA, Congress can create a tax package that genuinely promotes small business growth and job creation.

Expanding Access to Affordable Healthcare for Entrepreneurs

The Affordable Care Act (ACA) has been instrumental in reducing the uninsured rate among employees of small businesses. Since its implementation, the uninsured rate for workers in businesses with fewer than 100 employees has dropped significantly, from 25.2% in 2013 to a record low of 16.3% by 2022. A key factor in this success has been the Advanced Premium Tax Credits, which have made healthcare more affordable for many. However, these credits are set to expire at the end of 2025 unless Congress acts to extend or make them permanent. Allowing these credits to lapse would lead to a substantial increase in premium payments for many enrollees, particularly in states that rely on the Healthcare.gov marketplace. Congress has an opportunity to build on the ACA’s success by ensuring that these tax credits continue to support small business owners and their employees.

Ensuring Sustainable Funding for Disaster Relief

Natural disasters, such as Hurricanes Helene and Milton, have underscored the importance of a robust disaster relief system for small businesses. In response to these events, the U.S. Small Business Administration (SBA) provides low-interest, long-term loans to help businesses recover. However, the unprecedented scale of recent disasters has strained the SBA’s resources, leading to the depletion of its disaster loan program funds. Congress stepped in to replenish these funds, but the cycle of depletion and replenishment is unsustainable. To prevent future disruptions, Congress should work towards establishing a more sustainable funding model for the SBA’s disaster loan program, ensuring that support is available whenever disaster strikes.

Leveraging Nearshoring to Strengthen Economic Ties with Canada and Mexico

In an era of global economic uncertainty, nearshoring—or the practice of outsourcing operations to nearby countries—offers a promising strategy for reducing supply chain vulnerabilities and costs. Many North American businesses are already shifting their focus from offshoring to nearshoring, particularly with Canada and Mexico. While recent discussions have centered on tariffs, there is a broader opportunity to foster economic integration and cooperation among the three nations. By working together to address common challenges and strengthen economic ties, the U.S., Canada, and Mexico can build a more resilient and interconnected economy.

Creating a Government That Empowers Small Businesses and Families

Small businesses are the backbone of the U.S. economy, and their success is deeply intertwined with the well-being of working families. To enhance small business competitiveness, Congress can take several steps, including expanding tax credits for working families, creating portable benefits systems, and developing retirement options tailored to the unique needs of small business owners. Additionally, stronger financial protections, such as transparency requirements for small business lending and targeted loan programs, can ensure fair competition and access to capital for all entrepreneurs. By addressing these challenges, Congress can create an environment where small businesses and working families thrive.

Building on the Momentum of Small Business Growth

The past four years have seen a surge in entrepreneurship, with a record number of new business applications. Small businesses have also been a driving force behind job creation, generating over 70% of the nation’s net new jobs since 2019. These achievements demonstrate the potential of small businesses to power economic growth and innovation. The five priorities outlined above—tax reforms, healthcare access, disaster funding, nearshoring, and targeted support for small businesses—offer a roadmap for building on this success. By implementing these measures, the administration and Congress can harness the ambition and resilience of American entrepreneurs, ensuring that Main Street continues to thrive in the years to come.