PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Advocate Urges Biden Administration and Congress to Restrain from Imposing New Regulatory Costs and Taxes on Small Businesses

By at 20 April, 2021, 3:24 pm

NEWS

For Immediate Release

Washington, D.C. –  As Congress and the Biden Administration continue to ramp up legislative and policy activity, a leading small business advocacy organization is urging restraint when it comes to new regulatory burdens or taxes on small businesses that could throw cold water on the economic recovery and undermine positive activity in new business creation across the country. Small Business & Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan said that small businesses continue to struggle during this period, especially as they dig out of the financial and economic mess caused by COVID-19 shutdowns and disruptions.

“As local economies open up further and more Americans get vaccinated, many entrepreneurs and small business owners are feeling hopeful about the future. However, these business owners are digging out of a big hole given year-long plus restrictions on business activity and the economic havoc triggered by COVID-19. New regulatory costs and taxes will make their recovery far more difficult, and we urge Congress and President Biden to show some restraint given the difficult road ahead for many local businesses,” said Kerrigan.

According to the latest Small Business Pulse Survey from the Census Bureau for the week of April 11, 70% of small businesses still report a negative effect from the pandemic (25% report a “large negative effect”), and 37.4% say it will take them 6 months or longer to return to a “normal level of operation.”  Moreover, 19.8% reported revenue decreases for the week while only 13.3% experienced revenue increases. In addition, many small businesses report that operations are being affected by supplier delays (29.3% domestic and 12% foreign), production delays (9%), and shipping delays to customers (18.3%).

“Small business owners continue to face a range of challenges as they work to recover from the pandemic – from finding employees to identifying a reliable stream of supplies and inputs to operate efficiently, and with consistency.  They need all their time and hard-earned capital to ramp back up, pay off debt and operate in a way that will produce steady revenues.  It would be misguided and harmful for Congress or the Biden Administration to impose new taxes or regulatory costs on our job creators, as they work to rebuild and restore their businesses and local economies,” added Kerrigan.

CONTACT:

Karen Kerrigan, kkerrigan@sbecouncil.org

SBE Council is nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For more than 25 years, SBE Council has worked on and advanced a range of private sector and public policy initiatives to strengthen the ecosystem for strong startup activity and small business growth. Visit www.sbecouncil.org for additional information. Twitter: @SBECouncil

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