publicprivatestrategies

Rhett Buttle for Forbes: Investing In Economic Mobility: A Talk With DeAngela Burns-Wallace

Wed, 07 Jan 2026 21:34:47 GMT

Rhett Buttle for Forbes

In his latest piece for Forbes , Rhett Buttle speaks with DeAngela Burns-Wallace, Ed.D., President and Chief Executive Officer of the Ewing Marion Kauffman Foundation. For nearly 60 years, the Kauffman Foundation has led efforts to strengthen communities and increase entrepreneurship in the Kansas City area. In their discussion, Dr. Burns-Wallace offers a blueprint for how communities can build economic mobility by aligning education, workforce pathways, and business ownership through real public-private collaboration.

If you’re focused on entrepreneurship, ecosystem design, or place-based economic strategy, this is a conversation worth tapping into.

Listen to the full conversation below or read Rhett's article here .

Rhett Buttle on Fox Live Now: What Will a Trump Economy Look Like?

Fri, 13 Dec 2024 20:33:30 GMT

Fox Live Now: What Will a Trump Economy Look Like?

December 13, 2024

Rhett Buttle joins Fox Live Now to discuss the Trump economic agenda and what it means for businesses and consumers. Watch here.

Katie Wonnenberg to Scripps News: Small business owners facing 'double whammy' amid Hurricane Helene cleanup

Fri, 04 Oct 2024 20:12:55 GMT

Scripps News: Small business owners facing 'double whammy' amid Hurricane Helene cleanup

October 4, 2024

By Scripps News Staff

Katie Vlietstra Wonnenberg, a small business advocate and political strategist, said it is going to take a significant amount of time to finish the cleanup, no matter how hard the federal government works. “This is going to take, unfortunately, a lot of time,” she said. “But I do think we have the resources and the manpower to get to those citizens and support them during this terrible crisis.”

One issue is the recovery could be costly for the federal government at a time Congress has struggled to keep the government open. Federal Emergency Management Agency officials, however, have contended that there are enough funds to provide immediate disaster relief and are encouraging individuals and businesses to apply for assistance.

“There's a double whammy,” Wonnenberg said. “You have businesses in Asheville who have been decimated. They also have homes that have been decimated. And as you probably know from your own reporting, many of these homes do not have flood insurance. They're going to have to rely on programs both at FEMA and the Small Business Administration, not to just rebuild their businesses, but rebuild their homes. And so our ability to ensure that the federal funds are available to do so, that the manpower is there to quickly assess the damage that has been done both to business and homes, is really important.”

Read the full story here on ScrippsNews.com .

Rhett Buttle for Forbes: Three-Year Small Business Boom Is Unprecedented

Fri, 12 Jan 2024 18:05:33 GMT

Forbes: Three-Year Small Business Boom is Unprecedented

April 14, 2024

By Rhett Buttle

In Rhett Buttle's latest for Forbes, he explores the explosion in new small business starts since 2021 and how policymakers can support this growth in entrepreneurship. Read the full piece here .

Fortune Magazine: Supporting Democracy Is Not A Partisan Issue–It’s What All Americans Expect Of Business Ahead Of The 2024 Election

Mon, 18 Sep 2023 17:37:00 GMT

By Daniella Ballou-Aares, Rhett Buttle, and Samantha Tweedy

Protecting and strengthening our democracy requires year-round engagement. The fault lines in our democratic system aren’t just around electoral cycles–they’re every day that a state legislature works to roll back voting rights or the judiciary enables anti-democratic gerrymandering. As we approach the 2024 election, business leaders have a critical role to play in standing up for our democracy.

A well-functioning democracy is the cornerstone of a strong economy. However, growing and well-documented threats to our democracy are now creating a business environment marked by new risks–including restricted speech, retribution, and legal confusion.

It’s clear that corporate leaders are invested in our democratic future. Research from the Business & Democracy Initiative found that 96% of business leaders say the existence of a well-functioning democracy is important to a strong economy. Independent judiciaries and transparent legal systems provide vital stability and predictability for businesses, promoting competition and ensuring businesses operate on a level playing field. Freedom of speech and expression allows businesses to challenge the status quo, resulting in innovations that benefit consumers, drive economic growth, and promote job creation.

Another Jan. 6 must and can be prevented. Business leaders have the power to help uphold our democracy heading into 2024–and there are concrete steps they can and should take. Our power is grou nded in the unique relationship of trust that we have with employees, customers, communities, and the American people at large. According to Edelman’s 2023 Trust Barometer , business is the world’s most trusted sector, and Gallup recently found that small business is the most trusted sector in the United States.

As we approach the 2024 elections, this trust makes business a critical conduit for delivering trustworthy information to employees and consumers. Business leaders can raise awareness about election risks with their employees and emphasize the importance of voting and civic engagement.

Employees have a strong desire to support democratic integrity. In response, it’s becoming the new norm to offer paid time off for employees to vote. Many companies are going beyond that crucial step to allow employees time to work polling places. And companies may be rewarded for this level of engagement, with nearly half (48%) of consumers saying they are more likely to buy a good or service from a business that allows employees to take time off from work to engage in the political process.

We can also use our trusted voices to support pro-democracy legislation at the state and federal levels. Business leaders were a key part of the coalition that came together to support the Electoral Count Reform Act, a key piece of legislation that slammed the door on a vulnerability in our democratic system that was weaponized in an attempt to overturn the 2020 election. Heading into 2024, there are other pro-democracy legislative efforts to protect voting rights and secure election infrastructure that business leaders can support, particularly at the state level.

Political giving is one of the most powerful levers that business leaders can use in supporting pro-democracy interests. In our electoral system, businesses and their employees are the biggest contributors to political candidates, PACs, and parties–and they must ensure their contributions are flowing to campaigns and causes that align with pro-democracy values.

Finally, business leaders can support accurate and open elections by providing resources and in-kind support for election administration and security infrastructure, including funding for election system stress tests, tech upgrades, and training.

The integrity of our democracy is not a partisan issue. A vibrant civil society and a well-functioning democracy ensure a wide range of perspectives from across the political spectrum are robustly represented. By opposing efforts that undermine democracy, business leaders will be standing for the rights of all people, of any party.

Public Private Strategies Founder, Rhett Buttle, Discusses Benefits of the IRA and CHIPS Act On the Private Sector During One Year Anniversary

Wed, 23 Aug 2023 16:53:00 GMT

WASHINGTON, D.C. – Last week, Public Private Strategies Founder, Rhett Buttle discussed the impacts of the Inflation Reduction Act and the CHIPS and Science Act during the laws’ one year anniversary. The legislation is bringing back manufacturing jobs from overseas to America’s small towns, lowering healthcare costs, and investing in the clean energy economy.

Rhett Buttle highlighted the importance of the future influence of the IRA and CHIPS on the economy and small businesses across the country.

News Highlights:

INC Magazine: Assessing the Impact of the CHIPS and Science Act and the Inflation Reduction Act

ABC7: Expert weighs in on how the Inflation Reduction Act impacted small businesses

Fox5: Marking One Year Since the Passage of the Inflation Reduction Act

GrayTV: Impacts of Inflation Reduction Act One Year Later

NewsNet Media: IRA Helping Small Businesses

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Rhett Buttle for INC. Magazine: Assessing the Impact of the Chips and Science Act and the Inflation Reduction Act

Wed, 16 Aug 2023 19:19:31 GMT

Inc. Magazine: Assessing the Impact of the Chips and Science Act and the Inflation Reduction Act One Year Later
By: Rhett Buttle

August 16, 2023

Rhett Buttle discusses the economic impact of the CHIPS and Science Act and the Inflation Reudction Act. Read the full piece here .

ABC 7 News: Expert weighs in on how the Inflation Reduction Act impacted small businesses

Tue, 15 Aug 2023 19:21:05 GMT

ABC 7 News: Expert weighs in on how the Inflation Reduction Act impacted small businesses

August 15, 2023

Rhett Buttle joins ABC 7 News to discuss the implications of the Inflation Reudction Act for Small Businesses. Watch the full clip here or below.

At One Year Anniversary of CHIPS Act, Strong Opportunities for Businesses Continue to Emerge

Mon, 14 Aug 2023 15:18:00 GMT

WASHINGTON, D.C. – With the one year anniversary mark of the CHIPS Act, many strong opportunities for businesses continue to emerge. From a $500 Tech Hub program to a $1 billion Recompete Pilot Program there are many opportunities for businesses to get the funding they need to grow.

The Business Journals: Why the CHIPS Act could be a 'carpe diem' moment for businesses

By Andy Medici

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Small Businesses Gain Strength as U.S. Economy “Blows Past Expectations”

Fri, 28 Jul 2023 13:17:00 GMT

Statement by Public Private Strategies Founder & Former HHS Director of Private Sector Engagement Rhett Buttle

WASHINGTON, D.C. – This week, new data from the Department of Commerce shows that the U.S. economy continues to “blow past expectations” – and small businesses and the people they employ are feeling the benefits.

The Hill reports that “Gross domestic product (GDP) levels came in hot in the second quarter, growing at a 2.4 percent rate that marked the fourth straight quarter of positive growth and underlined the resilience of the U.S. economy.”

Economists are attributing recent “legislation passed during the first half of the Biden administration, including the Inflation Reduction Act, the CHIPS Act, and the Infrastructure Investment and Jobs Act” as bolstering GDP growth and helping fuel a “boom in factory construction and investment.”

In response to the recent economic numbers, Rhett Buttle, Founder & Principal of Public Private Strategies, released the following statement:

“The U.S. economy continues to gather strength, and small businesses and the people they employ are seeing the results. As the global economy continues to weather the aftershocks of the COVID-19 pandemic, legislative investments like the American Rescue Plan, Bipartisan Infrastructure Law, Inflation Reduction Act, and CHIPS & Science Act are helping American business owners not just recover, but thrive.

“Over the past two years, Americans filed a record 10.5 million applications to start new small businesses, a reflection of the optimism among entrepreneurs that they can compete and grow in this economy.

“As the funds from these critical legislative investments continue to flow into our communities, it is critical that the public and private sectors work together to ensure funds are distributed effectively and that they boost small businesses in every community across the country.”

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As White House Takes New Action on Competition, Small Businesses See Growth and Entrepreneurship is at Historic High

Wed, 19 Jul 2023 11:15:00 GMT

Statement by Public Private Strategies Founder & Former HHS Director of Private Sector Engagement Rhett Buttle

WASHINGTON, D.C. – Today, President Biden will announce significant actions to protect entrepreneurs, small business owners & consumers that will strengthen the healthcare market.

At an event at the White House this afternoon, President Biden will be joined by business & healthcare leaders from across America – including Public Private Strategies Principal Katie Vlietstra Wonnenberg.

Ahead of this afternoon’s announcement, Rhett Buttle, founder and principal of Public Private Strategies and former Director of Private Sector Engagement at the U.S. Department of Health and Human Services under President Obama, released the following statement:

“Access to high-quality and affordable health insurance is critical for small businesses, entrepreneurs, and workers across our economy. In survey after survey , small business owners identify the cost of healthcare and prescription drug prices as a top concern.

“The actions announced today will support business owners and workers alike. Taking steps to protect small businesses and consumers from surprise billing, limiting bad health insurance, and lowering the cost of prescription drugs will help our nation’s employers as we continue to see record job creation numbers.

“Businesses of all shapes and sizes need policies that strengthen our healthcare system and allow them to grow their business and our economy. There is more work to do to protect small businesses in the healthcare market and help businesses and families thrive. Today's announcement is an excellent and measurable step forward in achieving that goal.”

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To request an interview or further comment from Rhett Buttle, Founder and Principal of Public Private Strategies, please contact Maya Guthman at maya@publicprivatestrategies.com .

Business Leaders Convene with Export–Import Bank of the United States in Charlotte

Fri, 23 Jun 2023 14:28:00 GMT

CHARLOTTE, NC – This week, Carolinas LGBT+ Chamber of Commerce , the National Association of Women Business Owners (NAWBO) Charlotte Chapter, Public Private Strategies , and the United States Hispanic Chamber of Commerce were joined by Export–Import Bank of the United States (EXIM) President and Chair Reta Jo Lewis and Member of EXIM Board of Director Member Spencer Bachus III for a roundtable discussion with business leaders in Charlotte, North Carolina.

The discussion was an opportunity for Chair Lewis and Director Bachus to connect with Charlotte area business owners who are actively engaged in exporting, and share information about Biden-Harris Administration’s efforts to reshore jobs, rebuild American manufacturing and strengthen America’s supply chains through programs like the Make More in America Initiative.

“We know that EXIM financing can be a powerful tool to support American businesses looking level up and grow in the international marketplace,” said Chair Lewis. “It was great to get the chance to speak with business leaders from Charlotte and across the region and help them learn more about what EXIM can do to help them boost exports and compete and win deals Overseas.”

During the event, Chair Lewis and Director Bachus shared how EXIM’s financing tools are uniquely positioned to help support American companies grow and expand their business through exporting.

“Small business is the backbone of a healthy American economy and EXIM has the financing tools to help small businesses expand into global markets,” said Director Bachus. “It has been a pleasure engaging with companies of all sizes in North Carolina this week. EXIM is open and continues to support American exporters and facilitate job growth nationwide.”

“We’re so glad to welcome EXIM Chair Lewis and Director Bachus to Charlotte for a discussion of how we can empower LGBTQ+ business owners and strengthen the economy here at home by expanding our presence in markets across the world,” said Chad Turner, President & CEO, Carolinas LGBT+ Chamber of Commerce.

“The Hispanic business community is a growing force in Charlotte and across North Carolina. The Latin American Chamber of Commerce-Charlotte is honored to have our members at this week's discussion with Chair Reta Jo Lewis, Director Bachus, and our partners as we work to increase economic opportunity and international business opportunities for Hispanic small-owned businesses,” said Gris K. Bailey, President/CEO, Latin American Chamber of Commerce-Charlotte.

“It was an honor to welcome EXIM Chair Lewis to Charlotte and discuss how women business owners can benefit from EXIM’s work to strengthen our market presence abroad. Our members valued the opportunity to hear directly from EXIM leadership about their plans to win the future for American business,” s aid Christina Jarrett, President, National Association of Women Business Owners (NAWBO) Charlotte Chapter.

“This week’s roundtable allowed leaders from across industries – from clean energy to fintech to export-import – to come together and engage with the leaders at EXIM that are shaping our economic future. We thank EXIM Chair Lewis and Director Bachus for taking the time to share updates and receive feedback from Charlotte area business owners who are actively engaged in exporting, creating American jobs, and supporting strong local economies,” said Rhett Buttle, Founder and Principal, Public Private Strategies.

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Small Business Leaders Support Bipartisan U.S. Senate Action to Advance Dilawar Syed’s Nomination as Deputy Administrator of SBA

Wed, 07 Jun 2023 20:47:00 GMT

WASHINGTON, D.C.– Today, the U.S. Senate voted on a bipartisan basis to advance the nomination of Dilawar Syed, President Biden’s nominee to be Deputy Administrator of the U.S. Small Business Administration (SBA). Today’s cloture motion on Mr. Syed’s nomination passed 54 - 44-2, and a vote on final approval of his nomination is expected in the coming days.

Following the bipartisan vote, Rhett Buttle, Founder and Principal of Public Private Strategies, released the following statement:

“Dilawar Syed is a trusted and effective advocate for U.S. small businesses and the people they employ. Special Envoy Syed’s nomination to be Deputy Administrator of the U.S. Small Business Administration is historic, and he’s eminently qualified to be the first Senate-confirmed Deputy of the SBA in over six years.

“With experience at the U.S. Department of State, as Chair of California’s Entrepreneurship Task Force, Chair of the White House Initiative on Asian Americans and Pacific Islanders (AAPIs) Economic Growth Committee, and with significant experience and success in the private sector, Dilawar has been a proven job creator and will bring unique insights to help lead the SBA’s work to support small businesses and entrepreneurs.

“Public Private Strategies join business leaders across America – from individual small business leaders to the U.S. Chamber of Commerce – in celebrating the U.S. Senate’s bipartisan action to advance the nomination of Dilawar Syed as Deputy Administrator of the SBA.”

Since Mr. Syed was nominated earlier this year, dozens of small business leaders and organizations have urged the U.S. Senate to swiftly confirm his nomination.

Small Business Roundtable :

Earlier this year, nearly 20 major small business organizations urged the Senate to confirm Mr. Syed.

“Mr. Syed’s extensive viewpoint from his entrepreneurial experience at the federal, state, and local levels will allow him to be an effective leader at the Agency. His previous experience as the founding Chair of California’s Entrepreneurship Task Force and as chair of the White House Initiative on Asian Americans and Pacific Islanders (AAPIs) Economic Growth Committee during the Obama Administration also speaks volumes to his ability to guide America’s small business community through to recovery.

“As a former entrepreneur himself, Mr. Syed understands the challenges that the 30 million entrepreneurs nationwide face. We believe that his industry exposure will serve him well in delivering equitable relief and support to the small business community.”

Frank Spillers, Small Business for America's Future :

“Small business owners support Dilawar Syed’s nomination for deputy administrator of the Small Business Administration (SBA) because he has proven to be a strong advocate for America’s Main Street entrepreneurs.

“We’ve had a boom in entrepreneurship, including rural entrepreneurship, in the last couple of years and Dilawar has proven to be committed to ensuring small business owners thrive and are in a strong position to contribute to the country’s ongoing economic recovery. We are eager to work with him to help bring this to pass.

“America’s 33 million small businesses are a crucial component of the nation’s economy, employing about half of all workers, providing valuable goods and services, and leading economic activity in our communities. The SBA plays a crucial role in advocating for and executing the policies that will drive our ongoing economic recovery. The agency needs high caliber leadership to serve our metro and rural entrepreneurs.

“Dilawar has the skill and work ethic to get the job done and we urge the Senate to expeditiously confirm him without delay.”

National Asian Pacific Islander American Chamber of Commerce and Entrepreneurship (National ACE):

“The National Asian Pacific Islander American Chamber of Commerce urges the Senate to swiftly confirm Mr. Dilawar Syed to serve as the Deputy Administrator of the U.S. Small Business Administration. Mr. Syed has extensive experience and expertise at the federal, state and local levels in addition to his own personal experience as an entrepreneur. Furthermore,if confirmed, Mr. Syed would be one of several AAPI leaders within the Administration, and his experience as the chair of the White House Initiative on Asian Americans, Native Hawaiians and Pacific Islanders (WHIAANHPI) provides him with critical insights towards addressing the needs of AANHPI entrepreneurs.

“National ACE supports Mr. Syed's nomination to fill this critical role within SBA leadership to ensure that the Administration can best serve America's small businesses at a time when many face uncertain economic conditions and continue to recover from the pandemic.”

National Minority Supplier Development Council :

“The National Minority Supplier Development Council (NMSDC) supports the nomination of Mr. Dilawar Syed to be Deputy Administrator of the U.S. Small Business Administration (SBA). The role of the Deputy Administrator at the SBA is a vital link between the NMSDC and the federal government to ensure equity inclusion for all small businesses in the U.S. Mr. Syed’s commitment to small and minority businesses makes him the perfect nominee for this critical position.”

“Mr. Syed’s dedication as an entrepreneur demonstrates his understanding of the needs of small businesses and the operational challenges of scaling a start-up to meet increased market demand. His impeccable skills and management astuteness are needed at a time when the SBA is pursuing its mission of running its core programs and ensuring business owners are aware of resources available to help their businesses thrive through the CHIPS, Science and Technology Act, the Bipartisan Infrastructure Law, and the Inflation Reduction Act.”

“We look forward to the U.S. Senate Small Business and Entrepreneurship Committee successfully discharging his nomination from the committee and advancing it to the full Senate for confirmation. NMSDC looks forward to working with Mr. Syed as the SBA Deputy Administrator to scale small businesses and contribute to our nation’s economic growth.”

U.S. Chamber of Commerce :

"The U.S. Chamber of Commerce supports the nomination of Dilawar Syed to be Deputy Administrator of the U.S. Small Business Administration (SBA). We believe that it is essential for SBA’s senior leadership team to be in place to deliver on the agency’s responsibilities and we believe Mr. Syed is well qualified for this position.

"Dilawar Syed has an impressive background as an entrepreneur and understands the operational challenges of scaling a start-up to meet increased market demand. Those skills and management acumen are needed at a time when SBA services continue to be in high demand after the agency gained prominence from its role during the COVID-19 pandemic.

"As Special Representative for Commercial & Business Affairs at the State Department, Dilawar Syed has been a champion for American business in markets overseas. Throughout his tenure, he partnered effectively with the private sector to advance trade and investment priorities with foreign governments and ensure a level playing field for U.S business. We know that he will bring that same passion and commitment to SBA to help spur small business engagement and growth through international trade."

National Association of Women Business Owners:

“The National Association of Women Business Owners (NAWBO) supports the nomination of Mr. Dilawar Syed to serve as the Deputy Administrator of the U.S. Small Business Administration. This vacancy at the SBA hampers its ability to perform oversight and to most effectively serve small businesses and entrepreneurs. His experience across federal, state and local government and in the private sector have proven him to be a strong leader with the expertise necessary to fill this critical leadership role within the SBA.

“Given that many small businesses, especially those owned by women, continue to recover from the impacts of the pandemic, it’s critical that SBA leadership is fully equipped to address the needs of small businesses.”

Women Impacting Public Policy:

“Ahead of this week’s Senate confirmation hearing, Women Impacting Public Policy (WIPP) once again expresses its support for the nomination of Mr. Dilawar Syed to serve as Deputy Administrator of the U.S. Small Business Administration. The role of the Deputy Administrator is critical to the success of the Administration to best serve small businesses and entrepreneurs. Women owned small businesses (WOSBs) look to the SBA for leadership and guidance as it relates to their federal contracts, and without the gap in leadership prevents SBA from having complete oversight and perspective into federal contracting programs.

“WIPP urges the U.S. Senate to swiftly confirm Mr. Syed to serve as the Deputy Administrator of the Small Business Administration.”

In addition, Iowa small businesses have expressed support for Mr. Syed’s swift confirmation:

Reginald McDade, Owner of Human Capital Strategies & Solutions, Ankeny, IA:

“Our economy, while showing signs of growth, is fragile. Small business owners like me, would like the assurance that the SBA is fully staffed and functional to help the needs of Main Street if there is sudden turbulence in the markets. We need Dilawar Syed on the job.”

Kimberlee Spillers, Co-Owner of Rural Community Solutions, Atlantic, IA:

“Dilawar Syed has shown grace and waited for far too long for a vote on his confirmation. The only issue his nomination should be tied to is the advancement of Main Street. I am confident in his ability to lead as second-in-command and should be confirmed.”

Kelly Finn, Owner of FinnPREP, Cedar Rapids, IA:

“We need the SBA to be fully staffed to help small businesses succeed in an unpredictable economy caused by the pandemic. Entrepreneurs deserve all the tools and resources they can get including a deputy administrator.”

Rex Lawrence, Firehouse Bar and Grill, Davenport, IA

“Dilawar Syed is qualified to serve as deputy administrator. I urge lawmakers to recognize that leaving this role vacant is doing more harm than good for small businesses. Main Street can benefit from his leadership skills and business background. I am urging lawmakers to move forward with a vote on his nomination.”

Business Leaders Convene with Export–Import Bank of the United States in Miami

Thu, 02 Mar 2023 18:26:00 GMT

Business Leaders Convene with Export–Import Bank of the United States in Miami

Export–Import Bank President and Chair Reta Jo Lewis was joined by local and national business leaders to discuss EXIM’s priorities, and hear directly from the Miami business community

Miami, FL– This week, Miami Dade College , the Miami-Dade Gay and Lesbian Chamber of Commerce , Public Private Strategies , and the United States Hispanic Chamber of Commerce were joined by Export–Import Bank of the United States (EXIM) President and Chair Reta Jo Lewis for a roundtable discussion with business leaders in Miami, Florida.

The discussion was an opportunity for EXIM President and Chair Reta Jo Lewis to connect with Miami-Dade area business owners who are actively engaged in exporting, and share information about Biden-Harris Administration’s efforts to reshore jobs, rebuild American manufacturing and strengthen America’s supply chains through programs like the Make More in America Initiative.

“EXIM is more motivated than ever before to be a gamechanger for American exporters and business owners, especially here in Miami and across the Americas,” said President and Chair of the Export Import Bank of the United States, Reta Jo Lewis. “By working together with local partners, EXIM can play a key role in helping U.S. businesses compete and succeed in the global marketplace. We are eager to continue working to support U.S. exporters and the jobs they create.”

“Miami is a truly global city, and to strengthen our economic infrastructure here at home, we need to strengthen our presence in markets across the world. It was an honor to welcome EXIM Chair Lewis to Miami and be a part of this conversation about how recent investments and the Make More in American Initiative can support diverse entrepreneurs and business leaders,” said Madeline Pumariega, President, Miami Dade College.

“The Hispanic business community is a growing force in Miami and all across the country. The United States Hispanic Chamber of Commerce is honored to be a part of today’s discussion with EXIM Chair Reta Jo Lewis and our partners as we work to increase economic opportunity and international business opportunities for Hispanic small-owned businesses,” said Yuri Cunza, Member of the United States Hispanic Chamber of Commerce Board of Directors.

“It was an honor to welcome EXIM Chair Lewis back to Miami and continue our discussion of how we can leverage the diversity, vibrancy, and international connections of amazing cities like Miami into economic opportunity that sparks growth and job creation in our city and in communities across the country,” said Steve Adkins, President, The Miami-Dade Gay and Lesbian Chamber of Commerce.

“EXIM plays a critical role in helping small businesses across the country reach international markets and expand their business, all while driving economic opportunity and job creation here at home. Today’s conversation highlighted how many new initiatives and opportunities there are for small businesses and entrepreneurs to grow and strengthen our economy,” said Katie Vlietstra Wonnenberg, Principal, Public Private Strategies.

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National Business Leaders, Small Business Owners Share Economic Outlook After SOTU

Tue, 07 Feb 2023 02:48:00 GMT

WASHINGTON, D.C.– This evening, President Biden delivered the State of the Union Address and focused heavily on the economy and the growing strength of small businesses.

Following the President’s address, business leaders and small business owners across the country shared their outlook on the economy. Here’s what they’re saying.

From National Organizations:

Ron Busby Sr., President and CEO, US Black Chambers, Inc .:

“This Administration’s commitment to ensuring increased opportunity for the business owners in our network underscores the dedication that has gone into the successes of the last two years. Though we realize there is still much work to be done, especially through our partnership with the Administration and members of Congress, we look forward to supporting the efforts led by the President to continue increasing opportunity for our firms. While there are many challenges ahead, we look forward to working together to achieve long-lasting policy change that drives economic growth for Black business owners across America.”

Rhett Buttle, Founde r, Public Private Strategies & Co-Executive Director, Small Business Roundtable:

“The past two years have brought historic legislative accomplishments and bipartisan investments that are benefitting small businesses and the communities they serve all over America, including the Bipartisan Infrastructure Law, American Rescue Plan, Inflation Reduction Act, and CHIPS and Science Act.

“Two years ago, we faced remarkable economic challenges. But these bipartisan investments have helped the economy recover and grow. Over 12 million jobs have been created, including over 750,000 manufacturing jobs, and we’ve seen the strongest two years of new small business applications in American history. Now, unemployment is at the lowest level in 53 years, annual inflation is falling, and real wages are rising.

“In particular, small businesses have driven economic growth and job creation over the past two years. A new Wall Street Journal and Jefferies analysis shows that ‘small companies have been responsible for all of the net job growth in the U.S. since the onset of the Covid-19 pandemic and account for almost four out of five available job openings.’ Small businesses are leading the charge on economic recovery, and Main Streets across America are growing stronger every month.

“In order to build on this economic progress, the private sector and the public sector need to continue to partner to ensure that the implementation of recent bipartisan legislation results in dynamic and broad-based economic growth.

“We urge President Biden and Congress to continue to work for bipartisan solutions that advance economic growth and opportunity, and avoid devastating setbacks, like defaulting on the federal debt.”

Lisa Coppola, Board of Directors Chair-Elect, National Association of Women Business Owners :

"Tonight, during the State of the Union, President Biden discussed bipartisan efforts that have helped strengthen the economy and create more opportunities for women business owners.

"Efforts include the Bipartisan Infrastructure Law and the CHIPS and Science Act, both of which have already begun to bolster American manufacturing and create jobs. We know that when Congress and Administrations set aside politics, they are able to accomplish more. On behalf of America's women-owned businesses, we urge the President and the new Congress to continue prioritizing bipartisanship to advance strong economic growth."

Ying McGuire, President and CEO, National Minority Supplier Development Council :

“The National Minority Supplier Diversity Council (NMSDC) applauds President Biden’s address to Congress in which he tactically uplifts many concerns that specifically impact historically underserved minority-owned businesses. During the past two years, this Administration has seen significant growth with the creation of over 10.5 million new businesses and an increase of 517,000 jobs according to the most recent job report in January, showing an increase of three times what estimates were projected and lowering the unemployment rate to the lowest in 53 years specifically in Black and Hispanic communities. This historic growth in business and job creation comes after the passage of critical bipartisan legislation, such as the Bipartisan Infrastructure Law and the CHIPS and Science Act. Both of these laws authorized billions of dollars for federal contracting and procurement, and have no doubt contributed to this robust job creation and business growth. This immediately impacts our minority business enterprises (MBEs), as many MBEs hire within their communities, providing opportunities and access to lower the racial wealth gap.

“NMSDC urges President Biden and Congress to continue to work for bipartisan solutions to promote policies that impact MBEs through contracting opportunities that promote economic growth.”

Ramiro A. Cavazos, President and CEO, United States Hispanic Chamber of Commerce:

“Hispanic-owned businesses across the country are getting stronger thanks to the generational bipartisan investments made in the past two years. These include the Bipartisan Infrastructure Law, the American Rescue Plan, and the Inflation Reduction Act. To support the five million Hispanic-owned businesses in the United States, the United States Hispanic Chamber of Commerce urges President Biden and the new Congress to continue to make bipartisan progress to support broad-based economic growth.”

Keith Hall, President and CEO, National Association for the Self-Employed

“America’s surge in the small business community means we need continued strong bipartisan cooperation in Washington to ensure our small business community is robust and can continue to grow.”

“We applaud and welcome these new entrepreneurs into our ranks – but to ensure sustained growth of our community, we need Congress and the Administration to continue to work together in a bipartisan way to create and foster a favorable policy and economic environment for small businesses to expand, save and grow.”

Justin Nelson, President, National LGBT Chamber of Commerce:

“LGBT-owned businesses have bounced back strong in the past two years thanks to critical bipartisan investments like the Restaurant Revitalization Fund and the Paycheck Protection Program included in the American Rescue Plan. As the economy continues to add jobs and unemployment reaches historic lows, the thousands of LGBT-owned businesses across America that contribute $1.7 trillion to the American economy, urge Congress to continue to work with President Biden to build on this economic momentum and find opportunities for bipartisan collaboration to support business owners, the people they employ, and the communities they serve.”

Chiling Tong, President & CEO, National Asian Pacific Islander American Chamber of Commerce and Entrepreneurship

“National ACE supports the President’s efforts to ‘finish the job’ of building the economy from the bottom up, and reforming the tax code to reward work.

“We are grateful to the Administration for its continued efforts to combat AAPI hate, including the recent launch of the National Strategy to Advance Equity, Justice and Opportunity for AA and NHPIs. We appreciate the President's recognition of Brandon Tsay, the hero of the Monterey Park shooting.

“We call on the Biden-Harris Administration and Congress to continue efforts to support the ongoing growth in the AANHPI business community and we look forward to working with them to achieve that goal.”

Candace Waterman, President and CEO, Women Impacting Public Policy

“Over the last two years, the Biden-Harris Administration has worked with Congress and across the aisle to advance important legislation, including the CHIPS & Science Act and the Bipartisan Infrastructure Law which have collectively authorized billions of dollars for federal contracting and procurement. These bills will play a tremendous role in strengthening our economy, though it is important that small businesses, which are the backbone of the American economy, have access to resources, capital and technology that helps their businesses thrive.

The Administration has also made commitments to increase federal contracting opportunities for Women Owned Businesses (WOSBs) and Economically Disadvantaged Women Owned Businesses (EDWOSBs). We recognize that these bills will provide more opportunities for WOSBs and EDWOSBs, however at the same time urge the Administration to continue its efforts to meet the 5% federal contracting goal for WOSBs.”

Small Business Owners Across The Country :

Arizona:

“As the Biden-Harris Administration looks ahead, my hope is that they will continue to focus on small businesses and pursue policies like the Bipartisan Infrastructure Law that help provide small businesses with opportunities and support during an unpredictable economy.”
Patricia McKinley
Founder and Owner, KHAVL Transport LLC.
Phoenix, Arizona

Florida:

“The administration has accomplished a lot in the last few years, from boosting the economy to helping secure a well-functioning democracy. I was particularly pleased to see the passage of the Election Reform Act last year garnered bipartisan support but more is needed to protect our democracy from radical political ideologies. This is no time to revert to the politics of division or to tear down what the federal government has achieved. We have proof that strong, steady leadership can advance American values and prosperity. Let’s leave behind the leaders who pull cheap political stunts to grab headlines and advance only themselves.”
Conchie Fernández
Founding Partner, CF Creative
Boca Raton, Florida

“There is no doubt in the minds of small business owners that a strong economy and a strong small business sector require a stable government, and we want our leaders to value it as much as we do. We have made progress on protecting democracy but it is something that requires constant vigilance and attention.”
Jeff Lamm
Lamm Properties
Tampa, Florida

Georgia:

“Small businesses were battered by the pandemic, but with the recent record-breaking jobs report and a record number of people interested in starting new businesses, we are seeing real signs of strength in our economy. I hope lawmakers can continue to work together to pass legislation that moves our small businesses and our country forward.”
Sissy Blanchard
Founder & Owner of Saltwater
Saint Simons Island, Georgia

“Our economy has its challenges, but it shows amazing resiliency with record-low unemployment, strong hiring, and a historic number of new small businesses created since the start of the pandemic. My hope is leaders will continue to pass legislation that will boost Main Street for decades to come.”
Malik Lee
Managing Principal & Founder, Felton & Peel Wealth Management
Atlanta, Georgia

Nevada:

“As we continue to navigate the post-pandemic waters, much has changed. There are new opportunities and developments that are affecting the small business landscape. Continued attention needs to be paid to our economy, particularly as it applies to inflation and unemployment. Legislation that helps Main Street, like the Inflation Reduction Act, should be a main focus. I applaud the president for signing this into law because it ensures that large corporations will be required to pay their fair share in taxes. In addition, addressing the high cost of prescription drugs is a step in the right direction for demonstrating changes that will help small businesses access affordable healthcare.”
Jenay Aiksnoras
Bliss Experiences & Lake Tahoe Yoga
South Lake Tahoe, Nevada

“It’s a defining moment for our economy. There was a record number of new small businesses created in the last two years, unemployment numbers are low and inflation appears to be cooling. But there is a lot more to do. I’m particularly interested to see if we can get to work on passing Paid Family Medical Leave, which would help small business owners by creating a deeper and more stable labor pool .”
Tiara Flynn
President & CEO of Sumnu Marketing and Founder of Phenomenal Mama
Las Vegas, Nevada

“I applaud recent efforts to strengthen our economy including the Inflation Reduction Act that invests in the IRS. The money won’t be used to go after small businesses like mine but will provide tools and resources to be more efficient and effective. The agency will be able to handle more complicated taxes in higher brackets. I hope to see more legislation in the future that evens the playing field for small businesses.”
Shaundell Newsome
Small Business for America’s Future Co-Chair
Founder, Sumnu Marketing
Las Vegas, Nevada

North Carolina:

“There is great power in bipartisanship. Legislation like the CHIPS Act and the Bipartisan Infrastructure Law gained the support of members from both parties and resulted in laws that will help our economy for decades to come. As inflation continues to ease, the small business community needs lawmakers to put aside their differences and work together for the benefit of everyone.”
Alicia Parr
Founder & CEO, Performentor LLC
Durham, North Carolina

"It is encouraging to see lawmakers work together and pass legislation like the Infrastructure Law and the CHIPS Act. We're looking forward to these policies propelling small businesses into a strong economic future by creating jobs, strengthening supply chains, repairing our nation’s aging roads and bridges and opening diverse opportunities to gain access to capital. My hope is that similar bipartisan action will happen during this legislative session.”
Kristi Tally
CEO & Founder, KD7 Enterprises Inc.
Raleigh, North Carolina

Ohio:

“We are highly appreciative of the support provided during the pandemic crisis, which saved our business. We also appreciate the support of the administration with the passage of the Infrastructure Investment and Jobs Act. This act directly impacted us by providing funding for the Brent Spence Bridge Corridor Project, which will drastically improve the transportation system in the Cincinnati area and bring countless jobs to the region. We look forward to the government coming together to provide further improvements moving forward.”
Todd Hamblin President
CEO, Global Aerospace Design Corp.
Cincinnati, Ohio

“Our economy has come a long way since the start of the pandemic, but I fear that radical political ideas could cause immense turbulence in the markets and working families and small businesses like mine would suffer the most. My hope is that lawmakers will heed the president’s call to stay the course and focus on important issues like raising the debt ceiling and ensuring large corporations are contributing their fair share of taxes.”
Anne Zimmerman
Small Business for America’s Future Co-Chair
Founder & Owner, Zimmerman & Co CPAs Inc.
Cincinnati, Ohio

Pennsylvania:

“I am grateful that building a better economy is a priority for the current administration. Our battered economy is continuing to heal but needs policies like the CHIPS Act that is helping small businesses by improving clogged supply chains and strengthening manufacturing investments needed to stimulate our entrepreneurial environment. Lawmakers worked together to get this legislation passed. There’s no telling the heights our economy can reach if policymakers put people before politics.”
Walt Rowen
Small Business for America’s Future Co-Chair
President of Susquehanna Glass Co.
Columbia, Pennsylvania

Texas:

“Bipartisanship, working together for the common good of the people, has been proven to be the best way for communities, cities, states, and countries to succeed. This administration has adopted this proven pathway to enable all people and businesses to succeed, particularly the small businesses, our economic engine. The CHIPS Act and the Bipartisan Infrastructure Law received both parties’ support and empowered Americans across the board. With the current makeup of Congress, compromise is the only way to improve the lives of small business owners and working families. We know bipartisanship works. Let's not try to reinvent the wheel and hurt the American dream.”
Muneer Baig
Founder & CEO, SYSUSA Inc.
Murphy, Texas

“The Inflation Reduction Act helps control high healthcare costs–which have plagued small businesses for years–through key provisions that address soaring prescription drug prices, extend tax credits for Affordable Care Act insurance plans, and stabilize health insurance prices. But this is a long-term problem that needs a lot more attention. Looking at what we have accomplished in the last couple of years makes me hopeful that we can tackle big challenges as a country like making healthcare and prescription drugs more affordable.”

Dr. Erika Gonzalez
Small Business for America’s Future Co-Chair
CEO, President, & Co-Founder of South Texas Allergy and Asthma Medical Professionals (STAAMP) and STAAMP Clinical Research
San Antonio, Texas

Wisconsin:

“The small business community is growing by record numbers but in order for these businesses to succeed they need support in Washington. What does that look like? Well lawmakers need to work together and push aside radical ideas and focus on sound legislation like the Bipartisan Infrastructure Act that is set to create new jobs and help with the flow of supply chains.”
Daniel Guerra
Founder and CEO for AltusLearn
Madison, Wisconsin

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Business Expert Katie Wonnenberg Discusses Economic & Small Business Landscape Ahead of 2023 State of the Union Address.

Sun, 05 Feb 2023 20:01:27 GMT

Fox 5: Business Expert Katie Wonnenberg Discusses Economic & Small Business Landscape Ahead of 2023 State of the Union Address.
February 5, 2023

Katie Wonnenberg joins Fox 5 DC to discuss the small business landscape heading into the State Of The Union. Watch here .

Historic Legislative Accomplishments Help Fuel Record Small Business Applications

Wed, 18 Jan 2023 04:28:00 GMT

WASHINGTON, D.C., January 17, 2023 – Today, The U.S. Census Bureau released data on new small business applications. The data shows that the past two years have been the strongest two years on record for new small business applications. The 5 million applications in 2022 were second only to 2021, with 10.5 million total new business applications combined since President Biden took office.

In response to today’s news, Rhett Buttle, Founder and Principal of Public Private Strategies, released the following statement:

“Today’s data from The U.S. Census Bureau is a testament to the entrepreneurial spirit of America. It also shows that good legislation and smart policy like recent bipartisan efforts including the American Rescue Plan, the Bipartisan Infrastructure Law, and CHIPS are helping to power new opportunities & business starts across the country.

“The Biden-Harris administration & policymakers have worked closely with small business leaders and advocates to craft bipartisan investments to help small businesses bounce back from the Covid-19 pandemic, level the playing field and increase economic opportunity and competition, and deliver historic funding for infrastructure and supply chain resilience that will strengthen the economic landscape for small businesses for decades to come.

“While this is great news. There is more work to do to help support our nation’s job creators. Small business advocates look forward to continuing to work with both parties in the new Congress & the Administration to build on the successes of the past two years and ensure small businesses have the support they need to overcome challenges, innovate, and grow.”

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WATCH: Rhett Buttle on Small Business Impact of U.S. House Efforts to Repeal IRS Funding

Tue, 17 Jan 2023 17:55:00 GMT

WASHINGTON, DC –Last week, Republicans in the U.S. House of Representatives voted along party lines to strip billions of dollars in funding from the Internal Revenue Service (IRS). The funding was originally signed into law by President Biden as part of the Inflation Reduction Act. This weekend, Rhett Buttle, Founder and Principal of Public Private Strategies, joined Fox 5 DC to discuss how the Republican-led effort to cut IRS funding would harm Main Street businesses across America. WATCH: Buttle Joins Fox 5 DC To Discuss GOP Efforts to Slash IRS Funding

Buttle on the need for IRS funding: “This infusion of funding would allow the IRS to modernize its operations, to invest in more people, and to be more consumer friendly. We think that’s a good thing, because we think there are a lot of people, particularly large corporations, who get away with paying less taxes because the IRS just doesn’t have the ability to enforce the tax mechanism. Consumers and small businesses end up bearing the brunt of that lack of enforcement."
Buttle on how IRS funding will help small businesses: "This funding will allow the IRS to work with small businesses in a new way, and level the playing field for them. That’s why we think it’s a good idea for the IRS to be able to continue to modernize and provide better services to Main Street.”

AARP and PPS Launch Second Iteration of ‘Future of Skills’ Series

Wed, 11 Jan 2023 13:43:00 GMT

WASHINGTON, DC– Today, Public Private Strategies, in collaboration with the AARP, is excited to announce the second iteration of The Future of Skills, an initiative that convenes thought leaders for conversations about the importance and evolving landscape of 21st-century skills. AARP and PPS launched The Future of Skills in the Spring of 2022 to address the current workforce skills gap and the shifting labor market demographics through conversations and insights from diverse thought leaders.

This new series of conversations with thought leaders explores the importance of building equity into skills-based learning opportunities, ensuring that opportunities are accessible to workers and the restructuring of post-secondary education pathways. Among the thought leaders contributing to the new series are executives at OneTen , JFFLabs , and The Lumina Foundation .

Check Out The Future of Skills Insights

The pandemic accelerated many workforce trends, including automation, flex and hybrid work. A trend that perhaps receives less attention is the shift from traditional 4- year college degrees as the most credible job qualification. In recent years, employers are seeking candidates with more hands-on experience in place of, or in addition to, college degrees. This has spurred business leaders across the country to offer new learning and development opportunities, in addition to increasing enrollment in skills-based education and credentials as workers prepare to enter or re-enter the workforce.

“As these workforce trends progress, more and more workers will have access to professional development opportunities and growth,” said Rhett Buttle, Founder of Public Private Strategies. “It’s critical that these trends are approached with a lens of equity, so that workers of all backgrounds can take advantage of new opportunities. We’ve seen many Black, Hispanic and low-income workers who didn’t have access to a college education fall behind and so it’s really important that skills-based hiring and learning opportunities are accessible. The AARP Future of Skills platform explores equity and accessibility in conversations with workforce thought leaders and experts.”

The Future of Skills will be continuously updated with new conversations and insights from thought leaders in the coming weeks and months.

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About Public Private Strategies

Public Private Strategies (PPS) creates opportunities where the public and private sectors meet. We bring together diverse allies including foundations, associations, corporations, small businesses, and entrepreneurs to solve pressing societal challenges. By harnessing the power of the private sector, we build coalitions, activate campaigns, and create strategic partnerships to drive desired policy and market outcomes. Find out more and connect with us at www.publicprivatestrategies.com .

About AARP

AARP is the nation’s largest nonprofit, nonpartisan organization dedicated to empowering people 50 and older to choose how they live as they age. With a nationwide presence and nearly 38 million members, AARP strengthens communities and advocates for what matters most to families: health security, financial stability and personal fulfillment. AARP also produces the nation's largest circulation publications: AARP The Magazine and the AARP Bulletin. To learn more, visit aarp.org and aarp.org/espanol , or follow @AARP, @AARPenEspanol and @AARPadvocates, @AliadosAdelante on social media.

Business & Democracy Initiative Partners with Punchbowl News to Convene Conversation on Future of Democracy

Tue, 29 Nov 2022 19:12:00 GMT

Business & Democracy Initiative Partners with Punchbowl News to Convene Conversation on Future of Democracy

Event carried on C-SPAN featured Sen. Roy Blunt (R-MO), Punchbowl News’ Anna Palmer, and Public Private Strategies’ Rhett Buttle

WASHINGTON.– This week, the Business & Democracy Initiative partnered with Punchbowl News to convene a conversation about the future of democracy, voting rights reforms and more, featuring Sen. Roy Blunt (R-MO), Punchbowl News Co-Founder & CEO Anna Palmer, Public Private Strategies Founder Rhett Buttle, and Anoop Prakash, a founding member of Wisconsin Business Leaders for Democracy.

The event was carried on C-SPAN .

Watch the full event:

Following the event, Rhett Buttle, Founder and Principal of Public Private Strategies and one of the founding members of the Business & Democracy Initiative, made the following statement:

“During the conversation, Senator Blunt reminded us of the ‘commonplace and miraculous’ gift that is the peaceful transition of power and public trust in our free and fair elections. That democratic stability is the bedrock on which America has been able to grow and lead, and it is the foundation of our economy and shared prosperity.

“That’s why business leaders from across America are coming together to join Senator Blunt and a bipartisan group of Senators to support passage of the Electoral Count Reform Act before the end of this Congress, because a strong democracy means a strong economy.”

Below are highlights from the conversation:

WATCH: @Punchbowl News: Rhett Buttle, founder of Public Private Strategies, argued that business leaders increasingly see issues of democracy as closely connected to their bottom lines [ Twitter ]

WATCH: @PunchbowlNews: Anoop Prakash, founding member of Wisconsin Business Leaders for Democracy, said that business leaders see election denial rhetoric as a threat to the economy. [ Twitter ]

@PunchbowlNews: Blunt says the midterm results, and the defeats for election deniers, shows “that voters have more confidence in the system than some of the people that were running to to take over the system frankly and be responsible for the system next time” [ Twitter ]

@PunchbowlNews: Blunt on Electoral Count Reform Act: “Well, I do think it needs to get done before the end of the year… the long process did produce a pretty dramatic bipartisan consensus on the things that need to be done to make that 1888 law work better.” [ Twitter ]

@PunchbowlNews: Buttle on Electoral Count Reform Act: “I would make the case that this is not only an important issue for our democracy but also quite frankly, an economic issue.” [ Twitter ]

@PunchbowlNews: Prakash: “When you start to see risks of democracy and the undermining of institutions and the undermining of the economy in a local region, businesses start to wake up and say this is not good for my business.” [ Twitter ]

@PunchbowlNews: Prakash: “It's a very natural place for business leaders to participate and I think these midterms really woke up business leaders around the country to see the risk [to democracy].” [ Twitter ]
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Rhett Buttle Appointed to Export-Import Bank (EXIM) Council on Small Business

Mon, 12 Sep 2022 20:13:00 GMT

WASHINGTON, D.C. – Today, Reta Jo Lewis, the Chair of the Export-Import Bank of the United States (EXIM), appointed Rhett Buttle to the EXIM Council on Small Business for 2022-23.

Buttle is the founder and principal of Public Private Strategies.

In this role, Rhett will work with other members of the Council to provide advice and recommendations to the Export-Import Bank to support American jobs through exports.

In response to today’s appointment, Rhett Buttle released the following statement:

“I appreciate the leadership of EXIM Chair Reta Jo Lewis and look forward to working with my colleagues on the EXIM Council on Small Business to create jobs and increase our economic competitiveness.”

Rhett Buttle Highlights Business Benefit of Bipartisan CHIPS Act In Media Across The Country

Sat, 13 Aug 2022 02:52:00 GMT

Rhett Buttle Highlights Business Benefit of Bipartisan CHIPS Act In Media Across The Country

WASHINGTON, D.C.– This week, President Joe Biden signed the CHIPS and Science Act into law. Rhett Buttle, Founder and Principal of Public Private Strategies, has been highlighting the benefits of this critical legislation to American workers and the economy in media across the country.

As the CHIPS and Science Act moved through the legislative process, Buttle sat down with Brian Deese, Director of the National Economic Council, for a conversation about the importance of the legislation that was featured in Forbes.

Forbes: A Conversation With The President’s Chief Economic Advisor On The Future Of American Competitiveness, Innovation, And How Passing The Chips Act For America Is Part Of The Solution

Scripps National: Bill intended to lure manufacturers from China could impact small businesses ( CBS Richmond , ABC 7 Denver )

WATCH: Fox LiveNow: Rhett Buttle Discusses CHIPS Act Benefit for American Economy and Manufacturers

LISTEN: Bloomberg: Markets, Geopolitics, And Chips (21:25)

Rhett Buttle Joins Fox LiveNow to Discuss CHIPS Act

Mon, 08 Aug 2022 17:14:00 GMT

Rhett Buttle Addresses Business’ Role in Protecting Democracy As 1/6 Hearings Begin

Fri, 10 Jun 2022 00:11:00 GMT

WASHINGTON – Following prime-time hearings into the January 6th Insurrection, Rhett Buttle, Co-Founder and Principal of Public Private Strategies, released the following statement:
“The January 6th insurrection was an attack not just on American democracy, but an attack on everything that American democracy supports, including our shared economic prosperity.
“Business leaders — from Fortune 500 companies to Main Streets across America — understand that democracy is the foundation that grounds our economy. That’s why they have come together to condemn the insurrection and have taken unprecedented action to support American democracy in the past 18 months.
“Last night’s hearings highlight the ongoing challenges facing American democracy, and recent polling finds that business leaders want to continue to be active in protecting American democracy, and that their customers will support them.”

Last month, Public Private Strategies partnered with other business leaders to launch the Business and Democracy Initiative, a partnership of top business leaders and advocates dedicated to protecting our elections and rebuilding trust in democratic institutions. The Business and Democracy Initiative’s founding partners include the Black Economic Alliance, the Leadership Now Project, and Public Private Strategies.

Fast Company: American democracy is under threat. Business leaders must act to ensure safe and fair elections

Mon, 06 Jun 2022 13:39:00 GMT

B Y DANIELLA BALLOU-AARES AND DAVID CLUNIE AND RHETT BUTTLE

The health and stability of American democracy are in the midst of serious threats, putting our elections and business environment at risk. The business community can take decisive action to support democracy and turn the tide.

Read the entire piece on Fast Company.

Rhett Buttle Joins Cheddar News to Discuss Cyber Threats to Small Businesses

Wed, 25 May 2022 00:53:00 GMT

Cheddar News: Rhett Buttle on Cyber Threats to Small Businesses
May 25, 2022

Rhett Buttle joins Cheddar News to discuss cyber threats to small business. Watch here .

Public Private Strategies Founder & Former HHS Director of Private Sector Engagement Praises Actions to Strengthen the ACA

Tue, 05 Apr 2022 18:59:00 GMT

Washington, DC – Today, Rhett Buttle, founder and principal at Public Private Strategies and appointee at the Department of Health and Human Services under President Obama, joined President Biden, former President Obama, and Vice President Harris in the Rose Garden at the White House for the signing of the Executive Order on “Strengthening Access to the Affordable Care Act and Medicaid.”

The Biden Administration is aiming to propose a fix to the so-called “family glitch” within the Affordable Care Act — a loophole that’s prevented an estimated 5 million people from qualifying for subsidized health plans. The new proposal is expected to be unveiled ahead of a celebration of the landmark 2010 health care law Tuesday, where former President Barack Obama will also make his first White House appearance since leaving.

Rhett Buttle released the following statement:

“In survey after survey , small business owners identify the cost of healthcare and prescription drug prices as their top concern. It’s never been more clear that businesses of all shapes and sizes need policies that strengthen our healthcare system and allow them to grow their business and our economy. Today’s Executive Order addresses this issue, and builds upon the Biden Administration’s broader efforts to deliver results.

“As the country faced a public health crisis that shook our healthcare system to its core, the Biden administration delivered the American Rescue Plan, including provisions that have led to a historic increase in healthcare coverage and an equally historic decrease in healthcare costs for millions of Americans.

“The federal government has stepped up in this crisis, not only providing critical support to lower costs and expand access to coverage, but also creating resources to educate small businesses and self-employed individuals about the options available to them. These efforts build on the foundation we set during the Obama administration, engaging the entire business community – from small businesses to Fortune 100 companies – in the effort to pass, implement, administer, and strengthen the Affordable Care Act to expand access to high-quality, affordable coverage.

“This week’s executive action continues to move us forward. But there is still so much work to do to help businesses and families thrive, including lowering the cost of prescription drugs, extending subsidies that led to historic levels of coverage, and expanding access to high-quality health care for every American.”

Background:

About Rhett Buttle

Rhett Buttle is an entrepreneur, advocate, and one of the most trusted leaders at the intersection of business and policy in Washington, DC. Most recently, Rhett served as National Business Advisor to President Joe Biden's 2020 campaign. He has worked for President Barack Obama, Secretary of State Hillary Clinton, and Governor Arnold Schwarzenegger. Rhett is the founder of Public Private Strategies (PPS) and President of the Public Private Strategies Institute (PPSI), which works to bring together the public and private sectors to build coalitions, activate campaigns, and create strategic partnerships to drive policy and market outcomes. In these roles, he advises leading policy makers, foundations, nonprofits, and corporations.

Buttle previously served as Director of Private Sector Engagement in the Office of the Secretary at the U.S. Department of Health and Human Services under President Obama, where he played an important role working with all kinds of businesses, from small business groups to Fortune 100 companies, to pass, implement, administer, and strengthen the Affordable Care Act.

Influencing Private Regulation to Support Low-Wage Workers

Tue, 01 Feb 2022 00:06:00 GMT

It does not take a policy wonk or Beltway insider to know that change in public policy is often slow and incremental even with the hard work of advocates. While progress is slow, low-wage workers and their families continue to struggle. However, private regulation – voluntary efforts by private sector companies to define or restrain their behaviors using some or all the elements of regulation – can help effect change. For advocates, understanding why and how companies voluntarily take these stances is critical to shape strategies for corporate influence. Public Private Strategies , with support from The Robert Wood Johnson Foundation, set out to better understand private regulation as a tool to advance policies that benefit the health and well-being of low-wage workers.

Read the full Report here »

Why Companies Self-Regulate

Corporations have increasingly adopted private policies and taken public positions to shape policy. CVS Health in 2014 decided to stop selling tobacco in their stores to reposition CVS as a company “helping people on a path to better health.” Data published in the American Journal of Public Health found that CVS customers were 38% more likely to stop buying cigarettes after CVS’ decision. This was a textbook example of private regulation that reflected the strategic interests and culture of an individual company, and that had a real social impact.

Other times, corporate actions are a response to external pressures. In 2017, a group of leading small business lenders launched an industry-led pricing disclosure tool for entrepreneurs seeking capital in part as a response to the threat of legislation. The participating companies made standardized pricing comparison tools available to small business borrowers in a manner that satisfied the calls from many advocates for greater pricing transparency.

For advocates, understanding motives and methods is helpful to anticipate likely corporate actions. Companies self-regulate for several reasons, including to preempt government action, influence their competitors, and other internal considerations like financial position and the values of its board of directors. Private regulation can be carried out via compensation, benefits, and investment decisions, internal policies and programs, and campaigns. For example, in a decision to offer benefits that were not mandated by law, Starbucks began offering U.S. employees and eligible family members access to 20 free sessions with a mental health therapist or coach in March 2020.

A Framework for Advocates to Understand and Leverage Private Regulation

As part of this project, we created a simple tool to help advocates refine their strategies. The below chart shows how we identified three ways that private regulation can influence policy outcomes related to workers: 1) shaping policy, 2) persuading peers, and 3) mobilizing customers. For advocates, thinking about the broadest set of tools available to influence corporate action can be helpful to increase impact, particularly during this current state of chronic partisan gridlock in public policy.

1. Shaping Policy

Many companies invest considerable resources to create a more favorable federal, state, and local policy environment that gives them a broader competitive advantage and contributes to value creation. Those that do engage in shaping policy frequently lead or participate in campaigns, litigation, and government relations activities (often in tandem) to influence policy to their benefit and adjust as the landscape changes. In 2019, McDonald’s shifted from opposing a $15 minimum wage to seeking to influence the terms of the rollout. For advocates, traditional responses to counter or amplify corporate influence, such as public relations campaigns and grassroots advocacy, are appropriate and will likely continue.

2. Persuading Peers

Some companies may lead by example to influence stakeholders, other companies

and/or to mobilize industry responses or solutions. Several tools are at their disposal, including: benefits and investments; policies, procedures, and programs; campaigns and some government relations activities. For example, in 2018, PayPal launched its employee financial wellness initiative after an assessment of its hourly and entry-level workers found many employees were struggling to pay their bills each month. The company is now working to help other companies follow in its footsteps. Advocates should consider whether a company’s internal policy or program serves as a source of competitive advantage, as this may factor into whether the company is willing to promote its adoption among peers. Advocates can join forces with companies that lead in worker health and well-being by raising awareness about these strong practices and creating incentives for other companies to follow.

3. Mobilizing Customers

Some companies want to invest in improving worker health and well-being but are constrained by tight margins. In these cases, a single company or group of companies could rely on campaigns to inform, influence, and organize consumers to act or spend on behalf of worker health and well-being. Companies are increasingly taking public stances on social issues at the same time that social media is making new forms of engagement with customers possible. One example that could be instructive is Product RED. Launched in 2006, Product Red was a marketing campaign focused on raising awareness and funds to help eliminate HIV/AIDS in sub-Saharan Africa. Consumer product companies licensed the Product Red brand and customers purchased the licensed products, with a portion of the licensing royalty stream going to a fund for AIDS. The program raised at least $650 million for AIDS prevention and treatment. Possible motivations for participating companies include a benevolent view from consumers for being involved with a social cause and brand association with other participating companies.

A slightly different model with a similar intent of mobilizing customers to act on behalf of worker health and well-being is Grab Your Wallet , a campaign to influence corporate decisions, employer practices, and workplace cultures through effective social media campaigns. Advocates can spur companies to mobilize their customers for a particular cause by tying activism and corporate pressure to drivers of company value.

Observations for Advocates

As we reflect on what this means for advocates looking to influence large corporations, we have a few observations.

First, large corporations are generally giant, complex institutions. Success for advocates seeking to influence companies typically requires openness at the top in the form of senior executive sponsorship, and then the persistence and skill to move through and across the company. Strategies that promote the business case for a policy and then identify and support a champion within the firm or industry can drive efforts to improve worker well-being across departments.

Second, it is important for advocates to account for industry-specific constraints that may impact a company’s decision to advance policies that support low-wage workers. Identifying and mobilizing influential companies to help move the private sector toward initiatives and investments that improve the wellbeing of low-wage workers could affect the rate at which other companies adopt similar efforts.

Lastly, now is the moment to act as attention to public health, worker safety, and racial equity presents an opportunity to advance solutions for low-wage workers. This is an opportunity for advocates to leverage events like the COVID-19 global pandemic and the racial justice movement to illustrate the need for policies that benefit low-wage workers.

Building A More Equitable Economy for Businesses, Workers, And Communities: A Conversation With Deputy Secretary of Commerce Don Graves

Mon, 22 Nov 2021 19:35:00 GMT

Covid-19 ravaged our economy and American businesses, workers, and communities are still working to recover. The crisis also further highlighted long standing inequities in our society, but also presents a key opportunity to build back better than before. Just last week, President Biden signed the Bipartisan Infrastructure Deal , and negotiations are ongoing in Congress to pass the Build Back Better Act . And as the government begins to implement these historic pieces of legislation (let’s not forget the American Rescue Plan), equity and inclusive economic growth must be front and center.

The U.S. Department of Commerce, with agency partners and several nonprofit partners, recently hosted the Interagency Equitable Economic Growth Convening . This event, which focuses on equity, entrepreneurship, and working families could not come at a more appropriate time. A number of exciting announcements were made including one by the Families and Workers Fund who announced a $25 million commitment to advance good jobs.“Today is a once-in-a-generation opportunity to advance jobs that not only sustain families and workers, but also uplift them and spur greater opportunity for all – especially those who have been most locked out of that opportunity,” said Rachel Korberg who leads the Families and Workers Fund.

This was echoed by the Deputy Secretary for the U.S. Department of Commerce Don Graves at the convening, “We need to build an economy where every American worker, every American business, and every American community can thrive. That means designing an economic growth strategy that’s inclusive and that works for all Americans, not just for some of them.”

Deputy Secretary Graves is a key leader in the efforts to carry out President Biden’s agenda and help American workers and businesses succeed. Deputy Secretary Graves has been committed to the latter during his time both in the private sector and during his previous public service in the Obama Administration.I recently had the opportunity to sit down with Deputy Secretary Graves to discuss the Commerce Department’s efforts and how the public and private sectors can work together towards economic recovery. I am grateful to him for taking the time to speak with me and below is a readout of our discussion.

Rhett Buttle : Tell us a bit about yourself and what experiences you plan to bring to this position?

Deputy Secretary Graves: I come from a long line of small business owners, including ones who ran a horse and buggy taxi service on the land where the Department of Commerce sits today, and their son who owned and operated the only African American-owned hotel in the mid to late 1800s, just a few short blocks away. My career, in government, the private sector, and nonprofits has been dedicated to ensuring that more Americans can experience the American dream my ancestors were able to live. That’s why I have dedicated my career to ensuring that economic opportunity is inclusive and broad-based, supporting working families, and strengthening the communities in which they live.

Prior to joining the Department of Commerce, I served as Counselor to President Joe Biden during the 2020 presidential campaign, and before that, worked as the Executive Vice President and Head of Corporate Responsibility and Community Relations at KeyBank. During the Obama-Biden Administration, I served as Counselor and Domestic and Economic Policy Director for then-Vice President Biden, and was previously appointed by President Obama as Executive Director of the President’s Council on Jobs and Competitiveness, leading the federal government’s efforts in the economic recovery of the city of Detroit.

As the Deputy Secretary for the Department of Commerce, my mission remains the same: helping American workers and businesses thrive. Every day, I work closely with Secretary Raimondo to ensure that we not only build back better, but we build back equitably.

Rhett Buttle: Having been a leader on both sides of public and private sector partnerships, what role do you see them playing in the recovery and what type of challenges need to be overcome to make them succeed?

Deputy Secretary Graves: Businesses will play a pivotal role in our nation’s economic recovery. I am immensely proud of the progress we have made at the federal level to get folks back to work and businesses back up and running. In particular, President Biden’s American Rescue Plan Act allocated the Department of Commerce’s Economic Development Administration (EDA) with $3 billion in supplemental funding -- the largest federal economic investment in decades -- to help communities and the economy recover.

However, the federal government cannot do it alone. We will need to work hand-in-hand with the private sector when it comes to implementing key provisions of the President’s Build Back Better agenda. At the Department of Commerce, we are particularly focused on workforce development programs, with actual teeth, that will lead to good-paying jobs for all Americans. It is critical that we partner with the private sector to achieve this goal. Given that the pandemic was especially devastating to Black and Brown communities, including to Minority Owned Business enterprises, the Commerce Department -- through the Minority Business Development Agency’s (MBDA) grant making authority and technical assistance capabilities -- will work closely with minority business owners to ensure that they have the resources they need to get back on their feet.

Rhett Buttle: The Covid-19 pandemic exposed longstanding inequality across the United States. What steps is the Biden Administration taking to ensure an equitable recovery for business owners?

Deputy Secretary Graves: I am proud of the commitments this administration has made to build Black wealth and narrow the racial wealth gap. In addition to the work we are doing at Commerce and MBDA, President Biden has signed an executive order to use the government’s purchasing power to drive an additional $100 Billion to small, disadvantaged business owners by increasing the share of contracts going to those businesses. Ultimately, you cannot lead where you will not go, and as the largest consumer of goods in the world, the federal government has the responsibility and the power to advance equity and build wealth in underserved communities through procurement.

More broadly, we are also taking concrete steps to ensure that all communities across the country can recover, and their local economies can build back better than they were before the pandemic. That’s why the Commerce Department, through EDA, has implemented its Build Back Better Regional Challenge which invests $1 billion dollars in up to 30 regions across the country seeking to revitalize their economies -- driving innovation and spurring projects that grow new industries and scale existing ones.

Rhett Buttle: During the remembrance of the Tulsa Race Massacre, President Biden announced new efforts to narrow the racial wealth gap. What role will the Department of Commerce take in carrying out these initiatives?

Deputy Secretary Graves: In addition to the steps we are taking to help businesses recover from the pandemic and get folks back to work, the Department of Commerce is laser-focused on making sure more people are able to fully participate in our workforce, especially women and people of color. We’ve been advocating for expanded funding and permanent authorization of MBDA, which would dramatically increase its ability to support minority-owned businesses. We’ve been working tirelessly in support of the Build Back Better Act, which would ensure universal pre-K for every 3- and 4-year-old so parents can go to work and their kids have the education they need and deserve. It means providing Americans with two years of community college so more workers are prepared for family sustaining jobs. And it means, providing affordable child care, elder care, and expanded paid leave so no one has to choose between keeping the lights on or caring for a family member.

Lack of investment in our care economy has not only held Black and Brown families back from building wealth and achieving the American dream, but it’s holding our entire economy back.

According to data released by the Commerce Department’s Census Bureau, over 7.5 million respondents attribute caring for a child who was not in school or daycare as the main reason they were unemployed. Even before this pandemic, the lack of child care cost Americans $37 billion annually in lost income and $13 billion in lost productivity for employers. That’s why this Administration is ready to make those long overdue investments through President Biden’s Build Back Better Act and ensure that all Americans can receive the resources and support they need to survive and thrive.

Rhett Buttle: What are the Biden Administration’s long-term economic priorities and how are you thinking about American competitiveness?

Deputy Secretary Graves: To make the United States more competitive on the world stage, it’s going to take working with our allies abroad, while making major investments like the ones I’ve mentioned before here at home. The President and this Administration have done incredible work helping our country and our economy recover from the Covid-19 pandemic. Nearly 80% of all adults have at least one shot in their arm and data released from the Census tells us that the checks we were able to put right into people’s pockets helped families stay afloat. Now, as we turn from recovery towards real resurgence, it is critical that we do not take our foot off the gas, which means we need to continue to make robust investments into America’s workforce. This includes EDA’s Good Jobs Challenge, which allocates $500 million dollars towards industry-led workforce training programs and apprenticeships to place workers -- particularly women, people of color, and underserved communities -- in good-paying jobs. These investments will not only pay for themselves in the long run but will also benefit American businesses and make our country more competitive as well. Independent analyses of the President’s economic agenda project that it will add more than $4.5 trillion to GDP over the next decade, and 1.9 million jobs per year, on average, over the next ten years.

On the international front, we need to ensure that we are working closely with our allies to develop mutually beneficial frameworks around to create a level playing field. To that end, we are working with countries across the world to adopt a global minimum tax of at least 15%. Multinational corporations will no longer be able to avoid paying their fair share by hiding profits generated in the United States, or any other country, in lower-tax jurisdictions. This will also help to ensure that more good-paying jobs are staying here in the U.S. and not heading overseas.

Finally, Secretary Raimondo and the entire Biden Administration have been working overtime on addressing supply chain issues that are holding our economy back. We have been working across party lines in both the House and Senate to support legislation that invests in American competitiveness, including the bipartisan CHIPs for America Act, which will incentivize semiconductor investment here at home. This work builds upon our continued effort to address supply chain disruptions and ultimately make the American economy more competitive.

This piece originally appeared in Forbes on November 22, 2021. You can view it online here .

Rhett Buttle is the founder of Public Private Strategies, Executive Director of the Small Business Roundtable, Founder of the NextGen Chamber of Commerce, a Senior Fellow at The Aspen Institute, and a contributor for Forbes.

Public Private Strategies Founder joins President, Lawmakers at White House for Signing of the Bipartisan Infrastructure Bill

Mon, 15 Nov 2021 22:24:00 GMT

FOR IMMEDIATE RELEASE

Contact

Jared Thompson
jared@publicprivatestrategies.com , (260) 797-2530

Public Private Strategies Founder joins President, Lawmakers at White House for Signing of the Bipartisan Infrastructure Bill

Rhett Buttle, Founder of Public Private Strategies and Senior Advisor to Small Business for America’s Future, attended today’s bill signing ceremony at the White House for the Bipartisan Infrastructure Bill as the small business community celebrates its passage

Washington, D.C., Nov. 15, 2021— Following months of advocacy by the small business community and advocates from across the country, Public Private Strategies Founder Rhett Buttle joined President Biden and lawmakers at the White House today for the signing of the Bipartisan Infrastructure Bill.

“The Bipartisan Infrastructure Bill is a historic investment in our economy that will greatly help America’s small business community,” said PPS Founder and Principal, Rhett Buttle, who attended the signing ceremony. “Its passage demonstrates a strong commitment to helping the small business community at a time when federal support is as important as ever. As the economic effects of the pandemic linger, this legislation is a key component of our ongoing recovery.”

Public Private Strategies, in coordination with its partners including Small Business for America’s Future where Buttle serves as a senior advisor, was active in its advocacy to pass the legislation over the last six months. According to Small Business for America’s Future’s most recent national survey of over 1,000 small business owners , 81% support the Bipartisan Infrastructure Bill and 66% said the legislation will help small businesses.

Small business owners also believe that infrastructure investments should go beyond the physical investments in the Infrastructure Bill. The same small business survey found that 74% of small business owners believe economic investments like the infrastructure bill are important amid the lingering COVID-19 pandemic and expiration of previous relief programs like the Paycheck Protection Program (PPP).

“Small business owners are the backbone of the nation's economy--driving economic growth and job creation,” said Buttle. “While the Bipartisan Infrastructure Deal is a powerful beginning, Congress now must act swiftly to finish the job and deliver the Build Back Better Act to the president’s desk.”

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About Public Private Strategies
Public Private Strategies (PPS) creates opportunities where the public and private sectors meet. We bring together diverse allies including foundations, associations, corporations, small businesses, and entrepreneurs to solve pressing societal challenges. By harnessing the power of the private sector, we build coalitions, activate campaigns, and create strategic partnerships to drive desired policy and market outcomes. Find out more and connect with us at www.publicprivatestrategies.com .

BID Is A BFD for Business: Here Are Five Ways The Bipartisan Infrastructure Deal Will Support The Private Sector

Sun, 14 Nov 2021 19:30:00 GMT

When President Obama signed the Affordable Care Act, then Vice President Biden is famously known for exclaiming what a big deal it was -- a BFD. This coming Monday, President Biden will get his own BFD when he signs into law the Infrastructure Investment and Jobs Act, also known as the Bipartisan Infrastructure Deal (BID). This once-in-a-generation law will give the economy and Main Streets across America a much-needed upgrade. While there was sniping over the BID by the far wings of both parties, its support was truly bipartisan as lawmakers on both sides of the aisle recognized its necessity.

“Communities all across the Commonwealth will benefit from this bill, which will provide critical federal resources to assist the state in updating our highways, bridges, airports, broadband, and clean drinking water. Through today’s actions, we will be more competitive on the global stage and primed for broad-based economic growth,” said U.S. Senate Minority Leader Mitch McConnell (R-KY), when the bill passed the Senate.

This legislation has broad support on Capitol Hill, with large corporations and Main Street.

“Today’s passage of the Infrastructure Investment and Jobs Act is a victory for the American people. This legislation will generate historic investments in America’s transportation, water, energy and communications systems and will drive long-term U.S. prosperity and competitiveness,” said Joshua Bolten, President and CEO of the Business Roundtable, when the BID passed the House of Representatives. A Small Business for America’s Future survey found that 81% of small business owners support the BID.

This legislation will support businesses and support Main Streets throughout the country in the following ways.

1. Codifying of the Minority Business Development Agency (MBDA)

The MBDA helps minority entrepreneurs get access to government contracts and capital. This legislation codifies the agency and provides it with $110 million in annual funding through 2025, which is more than double the $48 million Congress allocated in 2021. The majority of this money is slated to go to the MBDA Business Center Program, which provides minority entrepreneurs with support such as technical assistance and community referrals.

“The codification of the MBDA is a huge victory for all minority owned small businesses,” National Asian/Pacific Islander American Chamber of Commerce and Entrepreneurship ACE President and CEO Chiling Tong said, “The MBDA provides resources to increase capacity and unify minority-owned small businesses to develop and thrive. We commend the Biden-Harris Administration for its continued commitment to minority-owned small business.”

2. Increasing Access to Reliable High-speed Internet

Broadband internet is necessary for small businesses to reach their full potential and Covid-19 demonstrated that it is critical now more than ever to go digital. Unfortunately, more than 30 million Americans live in areas where there is no broadband infrastructure to provide minimally acceptable internet speed. The BID allocates $65 billion to address this, including $40 billion for a formula-based grant program to states, territories, and the District of Columbia for the purposes of broadband deployment. Each project would have to meet a minimum download/upload build standard of 100/20 megabits per second.

“Small businesses who are contributing to the American revitalization should not be paralyzed due to a lack of connectivity,” said C. LeRoy Cavazos-Reyna, Vice President of Government and International Affairs for the United States Hispanic Chamber of Commerce . “The days of limited digital access and business success being defined by a person’s zip code are over. Building out our broadband ecosystem and granting businesses and people digital privilege will only further ensure our economic vibrancy.”

3. Upgrading Airports, Ports, and Waterways

The supply chain issues we have been seeing are the results of decades of neglect and underinvestment in our transportation infrastructure. According to some rankings, no U.S. airports rank in the top 25 of airports worldwide. The legislation invests $25 billion for the Airport Improvement grant program for runways, gates, and taxiways as well as a new Airport Terminal Improvement program for terminals, concessions, and multimodal connections. It also provides $17.3 billion for funding for waterway and coastal infrastructure, inland waterway improvements, port infrastructure, and land ports of entry.

“The real winners of this legislation will be the American people and millions of small businesses across the country who rely on a transportation and infrastructure system to move their American-made goods and workforce,” said Keith Hall, president and CEO of the National Association for the Self-Employed (NASE).

4. Addressing Climate Change and Environmental Remediation

Climate change and weather disasters are impacting Main Streets and communities. This will only get worse if not addressed. The BID commits $47 billion to address critical infrastructure needs, waste management, flood mitigation, wildfire, drought, and coastal resiliency, ecosystem restoration, and weatherization. Part of this investment includes $21 billion in environmental remediation, making the largest investment in addressing the legacy pollution that harms the public health of communities and neighborhoods in American history, creating good-paying union jobs in hard-hit energy communities.

“This historic investment in our infrastructure will be transformational for our communities by providing jobs, clean water, green solutions, and modern digital access,” said Eddie Monroy, Executive Director of NextGen Chamber of Commerce .

5. Upgrading the Power Infrastructure

The Department of Energy reports that power outages cost the U.S. economy up to $70 billion each year, creating instability in communities. The legislation allocates $73 billion for grid reliability, as well as critical minerals and supply chains for clean energy technology. It also upgrades our power infrastructure by building thousands of miles of new, resilient transmission lines to facilitate the expansion of renewable energy.

“Strengthening the grid is a critical issue to address the climate crisis and enable the deployment of clean energy sources across the country. Now the House and Senate must continue their work on the Build Back Better Act to enact key climate provisions and the largest federal investment in clean energy in American history,” said Heather Zichal, CEO of the American Clean Power Association.

The pandemic showed the vulnerability of small business, the economy, and our infrastructure. And while this is an important step, Congress needs to move quickly to pass the Build Back Better Framework as well, which compliments this infrastructure bill with important social and economic policies. While we continue to fully recover from the Covid-19, much is going on in the federal policy space that will impact business. This bill is definitely a once in a generation moment.

I’ll say it again for President Joe Biden, BID is a BFD for business.

This piece originally appeared in Forbes on November 14, 2021. You can view it online here .

Bipartisan Infrastructure Deal A Great Start, the Build Back Better Framework Could Further Lift Small Businesses

Mon, 08 Nov 2021 19:28:00 GMT

With the historic passage of the Bipartisan Infrastructure Bill this past Friday, Congress now turns its attention to the sweeping social infrastructure package known as the Build Back Better (BBB) Act. Following weeks of negotiations with many Members of Congress and President Joe Biden, the House of Representatives kickstarted the process for debating and passing the bill based on the recently announced framework for the BBB budget reconciliation package. While this legislation excludes some provisions advocates have fought hard for, there is no doubt this bill still marks a transformational opportunity for American business, workers, and our country. If passed, the investments made by the BBB framework will support small businesses, enable more Americans to join and remain in the labor force, and grow our economy from the bottom and middle. A Moody’s Analytics report estimates that it will add 1.5 million jobs per year on average across the decade and boost GDP by nearly $3 trillion.

Not only will this help small businesses, many say this is what they want. A Small Business for America’s Future (SBAF) survey of more than 1,000 small business owners found that 74% believe it is important that lawmakers continue bolstering the economy by supporting policies like the infrastructure and care economy investments. Most importantly, this package directly lifts up small businesses and thus communities across the country. Here are a few key ways that it does.

1. Steps to Reduce Healthcare Cost and Expand Coverage
In the same SBAF survey, lowering health insurance and prescription drug costs was the most cited policy priority for small business owners, with 73% saying it was important to their business. In addition to the first ever movement to allow the government to negotiate prescription drug costs (limited, but a very big deal), the BBB framework meets this need by reducing premiums for more than 9 million Americans who buy insurance through the Affordable Care Act Marketplace by an average of $600 per person per year. The package also closes the Medicaid coverage gap, which could help 4 million uninsured people obtain coverage. There is much more to do in this area, but these steps will provide greater stability for many small business owners and their employees.

2. Access to Capital

The BBB framework will make a $5 billion investment in U.S. Small Business Administration (SBA) programs that support recovery and provide long-term solutions. The package allocates nearly $1.5 billion for a new direct loan program at SBA to make direct loans of up to $150,000 (for contractors and manufacturers, the limit is $1 million).

“Lending reports have shown that 7(a) loans under $150,000 have decreased by almost 53 percent over the past five years. This investment in SBA’s direct lending program will fill those gaps in our lending market and ensure underrepresented entrepreneurs have the capital they need to launch and grow their businesses,” said House Small Business Committee Chairwoman Nydia M. Velázquez [D-NY] in testimony to the House Rules Committee.

It also includes $950 million to renew and continue the SBA's 7(a) loan fee waivers and $850 million for "uplift incubators,” where nonprofits or economic development organizations can apply for grants to support underserved startup and small businesses. Finally, the BBB framework provides $224.8 million for the SBA's Community Advantage Loan program, a pilot program for underserved businesses, $190 million for a growth accelerator grant program, and $100 million for a five-year pilot program for loans without personal or entity guarantees to cooperatives and employee-owned organizations.

3. A Start at More Fair Taxes

Three quarters of small business owners have said the tax code favors large corporations over small businesses and that small businesses are harmed when large businesses or corporations use loopholes to avoid paying taxes. Not only is the framework paid for, it is done so by helping level the playing field in the tax code. The package includes an agreement with 136 countries on a 15% global minimum tax that will prevent companies from receiving massive tax benefits from shifting profits and jobs abroad (The passage of the BBB framework will formally ratify this agreement). The legislation also ensures the highest income Americans are paying their fair share in taxes by including a new surtax on the income of multi-millionaires and billionaires with a 5% rate above income of $10 million, and an additional 3% surtax on income above $25 million. This doesn’t touch the vast majority of small businesses owners who make below $250,000 a year. This honors President Biden’s promise to not raise taxes on Any American making more than $400,000 and that’s the vast majority of small businesses.

4. Unprecedented Investment in Child Care

Too many employers are trying to help their workers ease the challenges of childcare being too expensive. A fall SBAF survey found that 66% of small business owners believe the federal government has a role in supporting universal access to affordable, high-quality child care, and more than half of small business owners believe that the lack of affordable, high-quality child care for employees has had a negative impact on their business. The BBB framework counters this impact with the largest investment in child care in the nation’s history, ensuring that the vast majority of working American families of four earning less than $300,000 per year will pay no more than 7% of their income on child care for children under the age of six. The rates will also be on a sliding scale for parents who are working, looking for work, participating in an education or training program, and/or making under 2.5 times their states’ median income. The package will help states expand access to high-quality, affordable child care to cover 90% of families across the country with young children.

5. Paid Leave that will Allow Small Business to be More Competitive

After it was cut from the initial framework, House negotiators reached an agreement to add a national paid leave program back into the bill voted on today. The amendment created a permanent, national program that will fund four weeks of paid family and medical leave for every worker in America. The program’s benefit would be determined on a sliding scale by income, with the average worker receiving two-thirds of their income back, and can be supplemented by existing employer programs. It would also fund grants to small business owners to help fill in the gaps for employees who take leave. While there is some uncertainty about whether this provision can ultimately pass through the Senate in a final bill, there is no doubt that businesses want this kind of support. A report from The Boston Consulting Group found that even before the pandemic, companies saw tremendous value in paid leave’s ability to attract and retain quality employees, and hundreds businesses have publicly called for federal policy intervention since the pandemic brought paid family and medical leave to the forefront of many of our lives. As the Senate takes up debate on the bill, negotiators should know they have Main Street’s support for keeping this provision intact.

Main Streets are still recovering from the impact of Covid-19, which compounded the day-to-day challenges small businesses were already facing. The BBB framework will give them the support they need to reemerge from this crisis stronger and ready to face the future. The House has done its job and sent the bill to the Senate, who should work with the House to find agreement and send this bill to President Biden’s desk quickly.

This piece originally appeared in Forbes on November 8, 2021. You can view it online here .

The Global Minimum Tax Agreement: Why It Matters for America’s Small Businesses

Tue, 26 Oct 2021 18:22:00 GMT

This week, leaders from the G20 (or Group of Twenty), an intergovernmental forum of 19 countries and the European Union, are meeting on a number of issues related to the global economy. One critical item is an international tax agreement on a global minimum corporate tax rate of 15% for multinational corporations. This agreement forged by the Biden Administration with nearly 140 countries is the first of its kind and could be a milestone in tax fairness for small businesses if Congress ratifies it.

For decades, small businesses have been crushed by a race to the bottom where big corporations can leave our country or hide their profits offshore for lower tax rates. It is called the race to the bottom because countries continue to reduce their tax rates to encourage multinational corporations to ship their jobs and profits offshore. For example, the federal corporate tax rate was 21% in 2020, but much lower in countries known as tax havens. Some of these havens , such as the Turks and Caicos and Cayman Islands which have a statutory tax rate of zero, have been made famous through crime and spy novels, while others like Barbados (5.5%) and Ireland (12.5%) are lesser known. Even when accounting for corporate tax credits and deductions, the U.S. still had a higher effective tax rate (8%) than the top 10 tax havens (4%) in 2018.

When corporations are able to take advantage of these loopholes and somewhat perverse incentives, American small businesses and workers suffer and the wealth gap widens. A Financial Accountability and Corporate Transparency Coalition briefing memo reports that a global minimum tax, “levels the playing field between U.S. multinationals and U.S. domestic businesses and other taxpayers who cannot take advantage of aggressive tax planning.” Here are three ways this could benefit small businesses.

1. Fairer Taxes

An April 2021 Pew Research Survey found that 81% of Americans believe that U.S. corporations do not pay their fair share of taxes… for good reason. In 2018, married couples making about $150,000 working at their own small business paid more than 20% of their income in federal income and self-employment taxes. By contrast, U.S. multinational corporations paid less than 10% in corporate income taxes on U.S. profits. Not only is this unfair, it also makes it harder for small businesses to have the capital they need to grow their business and operate in the same space as corporations. A May 2021 survey from Small Business for America’s Future found that small businesses are feeling the impacts of these pressures, with a staggering 76% of small business owners saying they are harmed when corporations use loopholes to avoid taxes. A global minimum tax will help reduce this disparity.

2. Stronger Main Streets

One of the reasons Main Streets are suffering today more than they did decades ago is due to companies moving jobs and profits offshore. A constant truth since our country’s founding is that vibrant Main Streets are a sign of a strong economy. President Biden’s international tax reforms eliminate the incentives to shift jobs and profits abroad and ensure that multinational corporations pay their fair share here at home. This will lead to a stronger economy, which will produce more robust Main Streets across the country.

3. Better Competition

Small businesses don’t have access to the army of lawyers and accountants that allowed 55 profitable large corporations to avoid paying any federal corporate taxes in 2020, and cannot shift profits into tax havens to avoid paying U.S. taxes like multinational corporations can. This in turn prevents small businesses from being able to compete with larger corporations in a number of areas, including providing competitive wages and opportunities for growth. This new tax agreement will give small businesses greater ability to operate alongside corporations, even if they do not have the same infrastructure.

This minimum global tax agreement is unprecedented, but Congress still needs to pass legislation to ratify it. Generally all lawmakers on both sides of the aisle have said they fully support robust Main Streets and ratifying this agreement is a way to show that they mean it.

This piece originally appeared in Forbes on October 26, 2021. You can view it online here .

Advocating For Women Entrepreneurs: A Conversation With Women Impacting Public Policy President And CEO Candace Waterman

Wed, 20 Oct 2021 18:21:00 GMT

October is National Women's Small Business Month where we take time to recognize the achievements of female entrepreneurs and their positive impact on the economy. Prior to Covid-19, women were the fastest growing segment of small business owners in the United States.

Unfortunately, the pandemic has slowed this progress and compacted long standing inequities. For example, women only receive 4% of all commercial loan dollars and the federal government has only reached its mandated goal of awarding 5% of its contracts to Women-owned small businesses only twice.

As President and CEO of Women Impacting Public Policy (WIPP), Candace Waterman leads a national nonpartisan organization advocating on behalf of women entrepreneurs, strengthening their impact on our nation’s public policy, creating economic opportunities, and forging alliances with other business organizations. She has more than 35 years of experience across the private and public sectors and has owned three successful companies in the medical, real estate, and hospitality industries.

I recently had a conversation with Candace about the state of female entrepreneurs and WIPP’s efforts. I am grateful to her for taking the time to speak with me and below is a summary of our discussion.

Rhett Buttle : Before Covid, women were the fastest growing segment of small business owners in the country. What can we do to support women who want to open businesses and rebuild that momentum?

Candace Waterman: It is true that prior to the pandemic, women were the fastest growing segment of business owners in the county. While growth was strong across the board, I would be remiss if I didn’t point out that the fastest growing sector was businesses owned by Black women. The pandemic has certainly turned back a huge amount of progress, as many women left the workforce or permanently closed their businesses, wiping out savings and losing out on wages and income.

From a business to consumer perspective, the easiest way to support women-owned businesses recovering from the pandemic is to do business with those locally, in your area. By doing so, you are helping them to keep their doors open. You may want to go a step further and recommend their businesses to friends and family. If you want to do more and have the resources to do so, you could also invest in women-owned businesses in the form of venture capital or by becoming an angel investor.

Another, very important way to support women-owned businesses is to incorporate them into supplier diversity pipelines and supplier development programs and give them a seat at the table when discussing matters related to small business. When women don’t have a seat at the table, their voices get lost and they can’t share their pain points and what would be most helpful to them from a solutions perspective.

Rhett Buttle: Given WIPP’s advocacy on the issue of access to capital, what are some ways to unlock capital for women going forward?

Access to capital is often cited as the number one issue for women business owners across the board. This is concerning given that access to capital is a crucial part of owning or expanding a business. Many women struggle with access to capital due to lack of banking relationships, low business revenue, and personal credit scores, and they are often approved for less funding than they request, and in some cases the terms and conditions are different or more stringent. In a similar vein, women apply for less funding, due to what I call application anxiety. On average, they ask for $35,000 less than men.

There are a few ways to think about addressing the challenges with access to capital for women. One way to think about this is through the policy lens. The Small Business Administration (SBA) has a 5% goal for federal contract procurement, meaning that 5% of all federal contracts go to women-owned businesses. This goal has only been met twice - in 2015 and in 2019. In order to provide more funding to women, the SBA should be more proactive in reaching women business owners as well as breaking down some of the barriers in the application process. Furthermore, contracts are typically awarded to businesses with an existing relationship with the federal government, meaning that many emerging businesses are shut out. Businesses without existing contracts or relationships must be equally considered for contracts.

We must also analyze this issue from the perspective of banks and financial institutions. These institutions have the capacity to foster strong relationships with women's business organizations and to reach women small business owners who are in need of funding. Banks and financial institutions could also provide guidance to steer women business owners in the direction of loan approval before they are ready to apply to avoid negative impacts on credit.

Becoming certified as a woman-owned small business can also increase access by opening up more opportunities for contracting and working with state and local governments. It also adds an extra layer of credibility to your business. Women can self-certify as women-owned, but keep in mind that contractors can challenge certification upon procurement and request proof. If a business cannot comply, it can result in loss of the contract, thereby going through a certification process will assist in mitigating waste, fraud, and abuse. We must remember that access to capital is a barrier to entry and growth. When access to capital is coupled with access to contracts, it results in long-term sustainability for women-owned businesses.

Rhett Buttle: How effective have policymakers been in supporting women-owned businesses before and during the pandemic? What else should they be doing to help?

Candace Waterman: Congress acted swiftly in March 2020, at the start of the Covid pandemic. Because of that swift action, millions of business owners had access to relief through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL). In addition, Congress has made an effort to collect demographic data on recipients of these programs to gain a sense of who is receiving relief and who isn’t, which is crucial information for us going into the recovery process. Furthermore, in March 2021, the Biden Administration introduced the American Rescue Plan (ARP) which extended the PPP, included PPP forgiveness, and created or expanded tax credits such as the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC), all of which have been beneficial to women workers and business owners.

Since the implementation of the ARP, the Biden Administration has laid out their long-term plan for childcare and paid leave in the American Families Plan, which ambitiously expands access to paid leave and makes permanent the ARP’s expansions of the CTC and EITC. All of this to say, Congress has stepped up in its efforts to support women business owners and workers and we are encouraged by these efforts to increase equity and even the playing field. Women business owners are decades behind their male counterparts in terms of growth, access to capital, and federal procurement, especially now after the global pandemic, which means there is still a lot of work to be done. At WIPP, we hope to see the House and Senate Small Business Committees continue to hold hearings on increasing access to capital, access to procurement opportunities, and examining the impacts of the pandemic and effectiveness of Covid relief for minority business owners. Learning more about these issues will help policymakers craft effective policies that will address many of the mechanisms that have kept women and minority business owners from reaching their full potential.

Rhett Buttle: What are the top things women small business owners need to think about in how they advocate to their lawmakers during these times?

Candace Waterman: The first is to understand that there is a critical intersection between business and policy. A huge part of advocacy, especially for small businesses, is authenticity and being able to share stories with policymakers. Stories from people who are impacted by policies are the most effective way to reach policymakers. I’ve often said that Capitol Hill staffers and Members of Congress are fierce advocates and well rounded people, however many of them do not understand what it’s like to be a small business owner, or the daily challenges they face. Gaining that perspective is vital for them to draft policies that help small businesses.

The pandemic has certainly changed the way that we advocate. We have gone from convening in capacity filled small meeting rooms on Capitol Hill to virtual Zoom meetings and increasing engagement via social media. Authenticity becomes that much more important when we lose the in-person setting. Having said that, I would encourage women to really focus on specific pain points in their industry, how Congressional actions could alleviate them, being a resource to policymakers, and most importantly, understanding the power of their voice in these conversations.

Rhett Buttle: How as Covid-19 impacted women's business operations and what does the increasing digital world mean for women-owned small businesses?

Candace Waterman: No small business has been left untouched by the pandemic. However, women-owned small businesses and women workers felt the impacts of the pandemic more acutely than perhaps any other demographic. Women were more likely to lay off employees, report losses in income and revenue, or close their businesses during the pandemic than their male counterparts. Furthermore, women workers also left the workforce in record numbers over the last 16 months. In fact, women’s participation in the workforce has dropped down to 57%, which is the lowest it has been since 1988, and in December 2020, women accounted for 100% of all net job losses. There have been numerous studies and surveys showing that women are overall less optimistic about recovery and are recovering at a slower rate than businesses owned by men. In terms of what needs to be done, we must ensure that leaders in the public and private sectors understand these challenges and that the recovery effort is as equitable as possible. That means increasing access to capital for women, increasing opportunities for federal procurement and yes, improving digital infrastructure at a pace that meets the needs of all businesses across the country.

Small businesses have become increasingly dependent upon technology as it continues advancing. It goes beyond the use of tablets for payment at the counter or self-service orders via touch screen computers. We use technology to run our books and keep track of expenses, to connect with colleagues and clients, and in the case of the pandemic, to take business online. Many businesses were not prepared to make the leap to online business during the pandemic and it reminds us how access to reliable broadband is necessary for participating in the economy. A recent study by Facebook and the Small Business Roundtable (SBR) found that only 46% of small businesses have an online presence. This tells us that a significant portion of small businesses are not prepared to take certain elements of their businesses online, which is troubling given that there is still high demand for online services. Many business owners still don’t have the tools they need to provide adequate online service. We are optimistic that there are bipartisan efforts in Congress to address the digital divide through the recent bipartisan infrastructure deal reached by Congress and the White House.

Rhett Buttle: WIPP recently joined the Small Business Roundtable. What does this mean for WIPP and how does WIPP work in coalition to achieve its goals?

Candace Waterman: WIPP is honored to have joined the SBR alongside several wonderful organizations who do important work every day on behalf of the small business. We are excited about the opportunity to provide additional perspective on women-owned small businesses and to share our expertise in important issue areas for small business including federal contracting, access to capital, and creating parity. WIPP is no stranger to collaboration with groups across the small business spectrum, and we’ve had the pleasure of working with SBR members in other capacities in the past. We look forward to building upon existing relationships, as well as working with new partners. The SBR has been incredibly successful in building coalitions among small business organizations that represent the interests and needs of millions of entrepreneurs and serves as a much-needed voice in the small business space.

Rhett Buttle: What do you think is the best advice for a woman business owner looking to scale/grow their business?

Candace Waterman: As the organization who represents the over 12.9 million women-owned businesses in the country, I think it’s safe to say that all Women who start their own businesses do so with the ambition to grow. That said, when women feel like they are ready to scale, or they are in a position where they must, it’s important to take a step back and create a solid strategic plan. Before you begin the process of scaling, you must first determine if you’re ready to scale. Determine if your volume is experiencing a temporary boost, or if you expect the increased volume to be consistent. The last thing you want to do is invest time and money into scaling only to find out a few months down the road that you weren’t ready or your approach should have been more deliberate and strategic.

This piece originally appeared in Forbes on October 20, 2021. You can view it online here .

Vaccine Requirements: 5 Things Small Business Owners Should Consider

Wed, 13 Oct 2021 18:19:00 GMT

The impact of Covid-19 on our economy has been much more than any of us could expect and the devastation it has caused on Main Street is painful. While important programs like the Paycheck Protection Program and corporate equity commitments helped expand access to capital, and innovative digital tools have had an impact, vaccines have to be a key part of the strategy to our country fully recovering from Covid-19. Small business owners across America agree. An April survey of more than 3,000 of them found that 87% think it is important that their employees get vaccinated.

Unfortunately, a large swath of Americans are still hesitant, have questions, or simply refuse to get vaccinated , which has caused Covid deaths in the U.S. in 2021 to surpass the toll from 2020 and hindered the reopening of communities. As President Biden recently said, “This is a pandemic of the unvaccinated -- not anything else right now.” To address this public health crisis which has brought upon an economic crisis, the White House has directed the Occupational Safety and Health Administration (OSHA) to mandate vaccines for federal employees, federal contractors, and large businesses. And while some critics have described this step as a violation of civil rights and an economic threat to small businesses, let’s be clear. Covid-19 and its variants are the greatest financial threat facing small business owners right now. Even so, information is moving fast and we learn new things every day. Here are five things small business owners should consider about vaccines and the vaccine requirements proposed by the Biden Administration.

1. The Mandate Only Applies to Businesses With More Than 100 Employees -- Exempting The Vast Majority of Small Employers

First and foremost, the mandate requires that employees in businesses with more than 100 workers receive the vaccine, meaning it will not apply to the overwhelming majority of small businesses. The U.S. Census Bureau reports that 98.1% of U.S. businesses employ fewer than 100 people and those with less than than 10 employees account for 78.4%. The only businesses in this group that would have to apply to the vaccine mandate are federal contractors who already have to meet stringent requirements.

2. Many Businesses Have Already Implemented Their Own Mandates -- With Good Reason

Following United Airlines’ decision to mandate vaccines for their employees all the way back in August, CEO Scott Kirby said “For me, the fact that people are 300 times more likely to die if they’re unvaccinated is all I need to know. It's about saving lives." Since then, 99% of its 67,000-person workforce has complied. Along with United, more than 3,500 organizations are already requiring vaccinations and were doing so before the White House announced its requirements. Deloitte mandated that all of its employees who enter its facilities to be fully vaccinated by October 11. Even Fox News, whose programming has expressed skepticism towards mandates, is requiring its employees to be vaccinated. Thousands more will likely issue mandates before President Biden’s vaccination requirements go into effect.

3. Vaccine Mandates Are Working

As expected, vaccination requirements result in more people getting vaccinated and have increased vaccination rates by 20+ percentage points in many organizations across different sectors. For example, Tyson Foods issued a mandate for all of its employees in August, giving its frontline workers until November 1, to receive the vaccine. To date, more than 90% of its workforce is vaccinated. Rutgers University was also able to get 99% of its 71,000 students vaccinated or in compliance. On October 7, the White House released a new report on how vaccination requirements are helping drive up vaccination rates, with more than 186 million people being fully vaccinated.

4. Small Businesses Of All Sizes Can Implement Vaccine Mandates

The White House also reports that higher vaccination rates could help return up to 5 million workers back into the workforce and higher vaccination rates will boost consumer demand and spending. If you’re a business owner and are anxious to get to this point, you are not alone. A survey conducted by Arizona State University's College of Health Solutions found that 93% of 1,143 U.S. employers currently require or encourage employee vaccinations. Business owners who have been in close contact with their employees about the vaccines and are considering making it mandatory should continue the approach of transparency. Any mandatory requirement should apply across the entire workforce, offer incentives before taking actions, incorporate thoughtful messengers and messages, and allow plenty of time to get vaccinated.

5. Mandates Or No Mandates, Small Business Owners Should Be Vaccine Leaders

Small business owners play a critical role in championing the vaccine with their employees and in their communities. Small business is the most trusted institution in the United States and small business owners, in particular business owners of color, are a trusted voice to their workers and in their communities. All should consider being leaders with their employees and assisting with vaccine promotion and distribution in their communities.

The bottom line is that vaccination requirements get more people vaccinated, putting more people back to work and strengthening our economy. This will help Main Streets across the country fully reopen and recover from Covid-19.

This piece originally appeared in Forbes on October 13, 2021. You can view it online here .

Defaulting On The National Debt Ceiling Would Be Catastrophic For Small Businesses

Mon, 04 Oct 2021 18:17:00 GMT

Here we go again. It seems every time this issue arises, lawmakers seem intent to put the US economy and small businesses at risk.

Unfortunately, the U.S. Department of Treasury Secretary Janet Yellen has said that the federal government will run out of money on October 18 if the debt ceiling is not raised. The government reached its debt limit at the end of July and Treasury has been taking steps to keep from defaulting. If the debt ceiling is not raised in the coming weeks, the U.S. will default on its debt for the first time in its history and that will be catastrophic for small businesses.

There is no question that our national debt needs to be addressed in the coming years with a mixture of revenue raises and spending cuts as the Clinton Administration did in the 1990s. However, defaulting on the debt is not the answer. It will not be some teachable moment on government spending. Instead, it will have unnecessary and irreversible consequences for almost all Americans. A Navigator survey also found that 58% of Americans support raising the debt ceiling. Unfortunately, this has become a political issue. Just a few days ago, Senate Minority Leader McConnell blocked Democrats from using a simple majority to get this done.

Why? Republicans may want to use this as a campaign issue against Democrats this coming fall trying to claim that they are growing the national debt. But, the real story is, the national debt has risen regardless of which party is in control. There will be a time when Republicans will be in the driver's seat and need to raise the debt limit, and let's hope Democrats move beyond politics because playing “chicken” with the debt limit is not good politics, not good for small business, not good for our national security, and not good for the economy. In fact, an analysis by Moody's Analytics chief economist Mark Zandi estimates that defaulting on the national debt would wipe out as many as 6 million jobs and erase $15 trillion in household wealth.

“We can’t emphasize enough how disastrous it would be for Congress to consider a government shutdown if consensus cannot be met in advance of the funding deadline. Small businesses are especially vulnerable and many would not survive a government shutdown at this time due to the pandemic, particularly with the rapid spread of the Delta variant, and trying to move from crisis to recovery,” wrote Candace Waterman, President and CEO of Women Impacting Public Policy, in a letter to U.S. House and Senate leadership.

Here are five ways defaulting on the national debt would harm Main Streets across the country.

1. More Expensive Small Business Loans

A majority of credit rating agencies rate the U.S. federal government at AAA, the highest level. Defaulting on the debt would lead to an automatic downgrade of the country’s credit rating, driving up interest rates for all Americans. Small business loans will become costlier as private lenders are forced to increase their interest rates. Even Small Business Administration (SBA)-guaranteed loans, which are often lower cost and more accessible but still reflective of market conditions, will become more expensive.

2. Higher Credit Card Interest Rates

Many small business owners use their personal credit cards to cover business expenses and manage debt. As with loan rates, small business credit card and personal credit card interest rates will also rise, squeezing the amount of capital small business owners have to work with and potentially driving them into more debt.

3. Tightened Credit Markets

One can look at the stories of Argentina and Greece to see what happens to a country’s credit markets when it defaults on its debt. The same will be the case for the United States if it follows in these countries’ footsteps. Credit markets will tighten up and U.S. banks will prioritize lending to businesses where they have pre-existing relationships, which are more likely to be larger ones than small ones. Small businesses, especially unbanked ones and those in underserved communities, would be at a severe disadvantage when they have the least financial cushion.

4. Plunging Stock Markets

The Moody’s Report estimates that stock prices would likely plunge by one-third, sparking that $15 trillion loss in household wealth. This would be a one-two punch for small business owners who would see their own retirement savings dissipate and then lose business from consumers who are now dealing with their lost nest egg. In turn, larger public companies could lose value, thus making it harder to incorporate small businesses into their vendor supply chain.

5. Delayed Treasury Payments

The Treasury Department has been taking steps to meet its obligations, including payments to households such as Social Security. If the U.S. defaults on its debt, the government would immediately need to stop more than 40% of expected payments, including Social Security and other household income. There are a number of downstream effects this would have on small businesses, including a loss of customers and a strain on business owners and employees now taking steps to make ends meet for themselves and their loved ones.

The American economy and its Main Streets are working through their greatest crisis since World War II. Both are still standing right now but a default on the national debt would be a knockout blow. Let’s stop playing politics and get the debt limit raised. Once that's done, we can return to the important work of getting an infrastructure bill passed that has the ability to pave the way for the next generation of American small businesses and entrepreneurs .

This piece originally appeared in Forbes on October 4, 2021. You can view it online here .

Empowering Businesses To Fix Democracy: A Conversation With Leadership Now Project CEO Daniella Ballou-Aares

Tue, 28 Sep 2021 18:12:00 GMT

The misinformation about the 2020 presidential election, the January 6 Capitol riot, and passage of voter suppression laws in several states have challenged American democracy in unprecedented ways. As many as 25% of U.S. voters do not have confidence in elections, according to a recent poll by NBC News.

Not only is this bad for democracy, it’s also bad for business. When democracy is thrown into chaos, so is the economy. A Small Business for America’s Future survey found that 60% of small business owners are concerned with the current state of democracy. As a result, they are speaking up on these issues now more than ever before, and business-focused organizations, such as the Black Economic Alliance , are organizing a powerful executive voice to respond.

As CEO of the Leadership Now Project , Daniella Ballou-Aares heads a membership organization of business and thought leaders taking action to strengthen American democracy. She was previously a Partner and Director for the Americas at Dalberg, which she helped grow from a start-up to a leading global group of social impact businesses, and also spent five years in the Obama Administration as the Senior Advisor for Development to the Secretary of State, serving under Secretaries Clinton and Kerry.

I recently had the opportunity to speak with Daniella about how business leaders can help combat voter suppression. I appreciate her taking the time to speak with me and below is a readout of our discussion.

Rhett Buttle: What is the current outlook of legislation in Congress, and what do business leaders need to know about it?

Daniella Ballou-Aares: The democracy legislation currently being proposed to Congress comes at a critical juncture in our nation’s history. The Senate is considering the Freedom to Vote Act, which builds off of Sen. Manchin’s compromise framework and includes the most critical, evidence-based policies from previous legislation, such as early voting, automatic voter registration, ensuring nonpartisan election administration and campaign finance transparency, and ending gerrymandering. Many of these policies were temporarily enacted during the 2020 election and helped make it the safest, most secure election in our nation’s history. The Freedom to Vote Act will help us modernize elections for the 21st Century while protecting the right to vote.

Business leaders understand the importance of a healthy democracy and taking part in the democratic process. That is why we helped mobilize thousands of executives and companies to offer time off for voting, safeguard the will of the voters ahead of the 2020 election, and also take action in response to the January 6 insurrection in 2021 . Bottom line is that business leaders were crucial in the success of the 2020 election, and they know that robust federal standards are the best way to sustain fair and free elections. They also know that state-by-state judicial and legislative fights are bad for democracy, a distraction from real priorities, and a hindrance to our economic recovery.

Rhett Buttle: In July, President Biden called for a new "coalition" of advocates to protect voting rights, and cited the business community as one of those stakeholders. What would you like to see more of from the White House as they seek to engage this broader coalition?

Daniella Ballou-Aares: I was encouraged by the President reinforcing his commitment. Now we’ll need to see sustained action.

In 2006, when the Voting Rights Act was renewed under President Bush , major business leaders helped make the case for its renewal. President Biden and Vice President Harris could secure similar support for federal legislation from individual business leaders today. The absence of support from conservative members of Congress doesn’t in fact mean they fundamentally oppose the terms of the bills at play, which under different circumstances would typically pass 98-0, as the last update of the Civil Rights Act did. It just means that some members of Congress care more about scoring short-term political points than they do the long-term health of our democracy. The White House should now do the same and galvanize leaders in business from across industries and geographies to make their support for voting rights and democracy more visible.

Rhett Buttle: What role do corporate leaders play in the national conversation on voting rights, and how does their example set the tone for the business community? Why is it important for business to engage on voting rights issues?

Daniella Ballou-Aares: Business leaders play a critical role in the conversation on voting rights and election reform for two main reasons. The first involves a bit of self interest: evidence tells us that stronger democracies have stronger economies, and a strong democracy depends on protecting the right to vote. The second is a question of businesses’ place in society. I don’t expect executives to become politicians, but I do expect them to pay attention to the broader currents in society which can impact their businesses, employees, and the communities they are part of. Restrictive voting policies weaken democracy, which should worry all Americans. They are a tactic used to separate politicians from their constituents and insulate them from meaningful accountability. America’s business leaders know that’s no way to run a business and that it’s no way to run a government.

Across the board, business leaders understand the importance of protecting voting rights: according to our own polling at Leadership Now Project , as well as data from Harvard Business School , the majority of business leaders support the political reform needed to ensure fair, equitable access to voting. As we saw in the lead-up and aftermath of the 2020 election, when business leaders are vocal about protecting democracy, they inspire others across industries to follow in their footsteps.

Rhett Buttle: What are specific things business leaders can do to help us build a healthier democracy, both nationally and in their local community?

Daniella Ballou-Aares: Business leaders can take action in a number of ways to protect voting rights, demonstrate leadership, and help us build a healthier, more innovative democracy. These include:

Stand up for evidence-based election reform in your state modernization : Americans can have almost any good or service delivered to their home within a day or two: This is the most innovative country in the world, and our elections should reflect that. Companies should support common-sense policies at the state level like automatic voter registration, early voting, and absentee voting -- policies like these would safely and effectively modernize our elections and allow more people to participate in our democracy. Consider joining or forming local coalitions like this one in Wisconsin , or crafting open letters to voice concerns about laws that are more about protecting politicians from their voters than they are about ensuring accessible, secure elections.
Re-examine your corporate political giving : Political giving (or withholding) is a powerful tool to encourage action, and data from Leadership Now Project showcases the power this lever holds for the business community. Microsoft provides a good example: they have redirected their funding from lawmakers who voted against certifying the 2020 election towards pro-democracy organizations.
Supporting national voting legislation: Federal voting legislation is a clear imperative given that individual states are introducing laws that make it harder for their citizens to access the ballot box and spread falsehoods about the 2020 election results. Business leaders can make public statements in support of the Freedom to Vote to preserve every American’s right to vote. Companies including Amazon, Apple, and Starbucks have joined a coalitio n in support of federal voting rights. Use your platforms to voice your support.

Rhett Buttle: What would you say to business leaders who are concerned that talking about these issues may impact their bottom line?

Daniella Ballou-Aares: These issues are not unpopular. For example, the vast majority of Americans also believe it should be easier to vote early in elections. We’ve seen no evidence suggesting that speaking up on social issues negatively impacts a company’s bottom line — in fact, the opposite. The 2021 Edelman Trust Barometer finds business to be the most highly trusted institution, seeing more trust than non-governmental organizations and governments. Business leaders have a responsibility to leverage this trust in order to protect the right to vote. Furthermore, 86% of respondents expect CEOs to speak out on social issues, outlining a clear imperative for business leaders to take action. At the end of the day the business community has the resources, relationships, and responsibility to help galvanize the rest of society to meet its greatest challenges, from hyperpolarization to climate change. The first step toward rebuilding that trust is ensuring fair representation for all Americans.

This piece originally appeared in Forbes on September 28, 2021. You can view it online here .

Celebrate Small Business by Building Back Better

Wed, 15 Sep 2021 18:09:00 GMT

This week we are celebrating National Small Business Week, where the U.S. Small Business Administration (SBA) recognizes and honors the critical contributions of America’s entrepreneurs and small business owners. If Congress wants to show its support and appreciation for American small businesses, it should pass two important pieces of legislation, the Bipartisan Infrastructure Deal and the budget reconciliation bill -- commonly known as the Build Back Better Plan -- in the coming weeks.

Currently, several House Committees are currently marking up the budget reconciliation bill. This legislative proposal includes provisions that have the opportunity to touch every aspect of American life from cradle to grave. Critical components of the legislation include healthcare, retirement security, child care support, paid leave, and tax reform. Independent analyses of President Biden’s full economic agenda projects that it will add more than $4.5 trillion to the GDP over the next decade.

The Covid pandemic has resulted in a shift in the way we work as workers prioritize flexible working arrangements and benefits such as paid leave and healthcare. At the same time, Covid has changed the way the economy acts as a result of higher than usual unemployment rates and workplace restrictions to slow the spread of the virus. At this time, nearly 10 million Americans are unemployed and a recent Indeed study found that only 10% of them are actively looking for jobs for seasons that range from childcare to worries over the virus. A large investment is needed to meet the changing environment and workforce.

This package will enable small businesses to be more competitive, help their workers, and strengthen communities. Most importantly, an overwhelming majority of Americans support it. A recent Navigator Research poll found that 70% of the country believe it should be passed urgently.

Here are six ways it will help small business owners and benefit the economy.

1. Leveled Playing Field on Taxes with More Fair Rates

A Small Business for America’s Future survey found that 72% of small business owners feel the current tax system favors big business over small businesses, and a striking 67% support raising taxes for large corporations to fund much needed infrastructure and care economy investments. This legislation levels the playing field by raising the tax limit on the most profitable corporations and wealthiest individuals with corporate and individual tax rates of 26.5% and 39.6% respectively. It also cuts the tax rate for businesses with an income of less than $400,000 per year to 18% , which is most small businesses . Important: It does not raise taxes on individuals making less than $400,000 a year and married couples making $450,000 per year, and 97% of small businesses would be protected from any tax increase.

2. Child Tax Credit (CTC) and the Earned Income Tax Credit (EITC)

One-third of adults with children struggle to cover needed expenses like food, rent, and healthcare and are not in a position to even think about entrepreneurship. The American Rescue Plan (ARP) raised the Child Tax Credit (CTC) from $2,000 to $3,000 per child for children over six and $3,600 for children under six. The budget reconciliation package expands to provide it to 40 million households. It also increases the Earned-Income Tax Credit from $543 to $1,502. This additional income will allow millions of Americans to shift their focus from paying for necessities to growing their wealth through actions that include starting businesses and creating jobs.

3. Expanded Healthcare and Lowers Costs

The Affordable Care Act (ACA) made it possible for millions of small business owners and their employees to obtain health insurance and the ARP limited enrollees premiums to no more than 8.5% of their income for their premiums. The proposal extends the ARP provision and also closes the Medicaid gap for low-income Americans, helping 4 million uninsured people gain coverage in states that have not expanded Medicaid. It also adds dental, vision, and hearing coverage to Medicare.

4. Investment in Small Businesses

The legislation makes a significant investment to meet aspiring and established entrepreneurs where they are with affordable loan options and federal contracting and mentorship opportunities. The package budgets for an investment of $25 billion in American small businesses over the next 10 years. This allocations include:

$4.465 billion to fund a direct loan program under the current 7(a) lending program managed by the Small Business Administration (SBA)
$9.5 billion to provide capital to underserved markets and small manufacturers
$2.746 billion to allow Certified Development Companies (nonprofit organizations certified by the SBA to provide financing to small businesses through the SBA's 504 loan program) to make loans in underrepresented markets
$1.75 billion for an uplift accelerator program and business development academy at Historically Black Colleges and Universities, Minority Serving Institutions, and community colleges for underrepresented small businesses looking to contract with the government
$35 million for veteran federal procurement entrepreneurship training
$20 million each to support the SBA’s Office of Native American Affairs and Office of Rural Affairs
$20 million to create an Office of Emerging Markets

5. Child Care

More than half of all children in the United States lack access to preschool or adequate child care options. This inhibits many of their parents from starting new businesses and entering and re-entering the workforce. Small business owners understand how the lack of affordable child care impacts their businesses, and are ready for Congress to take action. According to a Small Business for America’s Future survey of over 1,000 small business owners this summer, 66% said they believe the federal government has a role to play in delivering affordable, high-quality child care, and 64% support ongoing financial assistance to help families pay for it. The package addresses this by ensuring that low- and middle-income households pay no more than 7% of their income on child care up to the age of five, saving the average family $14,800 per year. The importance of child care and broadly, the care economy, to America's entrepreneurs was highlighted in a recent blog post by Esty CEO, Josh Silverman , who emphasized the connection between strong families and strong business. The Biden Administration will also work with states to offer high-quality preschool for all 3- and 4- year-olds, which would also save the average family $13,000 a year. This will free up more Americans to invest in the growth of Main Streets in their communities.

6. Paid Family and Medical Leave

Start a business or have children? That’s often the question many Americans are faced with because of the loss of income when having a child. A Small Business for America’s Future survey found that nearly six out of 10 small business owners support some form of a national paid family and medical leave policy. Currently, the closest American workers have to a leave policy is the Family and Medical Leave Act (FMLA), which provides up to 12 weeks of unpaid leave. Even with the FMLA, temporarily stepping away from the workforce is not feasible for most workers, and those that do are often forced to make decisions that impact their finances. The reconciliation proposal will provide paid family and medical leave to parents for birth of a newborn or adoption, those with caregiving responsibilities, or individuals coping with military deployment of family members. Workers could take up to 12 weeks of paid leave under the program that will begin in 2023. Under the program, workers could receive two thirds of their average weekly pay, up to a maximum of $4000 per month.

Investing in our human capital assets -- our people -- isn’t just good for our economy. It’s good for our nation as a whole. The last 18 months exposed the vulnerabilities of so many Americans. Both the Build Back Better Plan and Bipartisan Infrastructure Plan address these inequities and will strengthen our Main Streets.

This piece originally appeared in Forbes on September 15, 2021. You can view it online here .

Financial Security For Black Business Owners: A Conversation With Black Economic Alliance Executive Director David Clunie

Mon, 30 Aug 2021 18:04:00 GMT

Covid-19, the murder of George Floyd, and attempts to overturn the 2020 presidential election exposed longstanding racial disparities in the United States. In the midst of this unrest, Black small business owners were disproportionately impacted by the economic fallout from the pandemic.

As signs of fully reopening continue to emerge thanks to the vaccines, a majority of Black business owners are optimistic about the future of their business. However, efforts to pass restrictive voting laws in a number of states threaten prosperity and financial stability for all Black Amercans.

As Executive Director of the Black Economic Alliance (BEA) , David Clunie leads a coalition of Black business leaders and aligned advocates committed to driving economic progress for the Black community through public policy, advocacy, and engagement with business and government executives, including the Biden Administration . Prior to joining the alliance, David was the Executive Secretary of the U.S. Department of the Treasury and a senior member of the Corporate Responsibility department at JPMorgan Chase & Co.

I recently had the opportunity to discuss the BEA with David and ways business owners can combat voter suppression. I appreciate him taking the time and below is a summary of our conversation.

Rhett Buttle : Can you tell me more about the Black Economic Alliance, including when it was launched and its role in supporting Black business owners?

David Clunie: Organizational planning to form the Black Economic Alliance began shortly after the 2016 presidential election, and was formally launched in early 2018. BEA’s primary objectives are to build sustainable systems that drive Black economic mobility at scale and foster the development of generational wealth, with a focus on work, wages, and wealth. BEA leverages the collective dollars, expertise, and networks of some of America’s most successful Black business leaders to dismantle persistent systems of racial inequality in the pursuit of economic prosperity for Black Americans.

Business ownership is one of the fastest pathways to wealth-building, but for far too long, Black Americans have suffered disproportionate exclusion from the various points of entry to start and scale a successful business, especially equal access to capital through traditional sources like commercial bank loans, as well as alternative investments like venture capital. That’s why we’re laser-focused on advocating for comprehensive changes in the private, public, and philanthropic sectors to create a new, more inclusive economic ecosystem that provides opportunities for Black business owners to start, support, and scale successful businesses.

Rhett Buttle: This past year exposed how systemic racism has impacted the health and wealth of Black Americans. How have you thought about this past year and where we need to go moving forward?

David Clunie: This past year has made it more evident than ever that every American institution was not built to include Black people equally. The so-called racial reckoning of 2020 has made it clear that we need to proactively educate the many Americans who do not understand the Black experience. Nor do those individuals fundamentally understand the pervasive impact of persistent racism and inequality, and how it created and continued to reinforce the racial wealth gap, among other Black-White gaps in the American experience.

Building a more equitable economy requires an all-hands-on-deck commitment to systems change among the public, private, and nonprofit sectors. Everyone must utilize their resources to build a new economic infrastructure that drives equity for Black Americans—and all Americans—in a way the U.S. economy has never before, and was never built to do. Not only is it the right thing to do, but it is also the economically prudent thing to do. According to a McKinsey report, if we were to close the racial wealth gap between Black and White Americans by 2028, we could grow U.S. GDP by 4-6% . In other words, we’re losing out on over $1 trillion (in 2018 dollars) of growth for the U.S. economy every year if we don’t fix this problem.

Rhett Buttle: You recently forged a partnership with Spelman College and Morehouse College to create the Center for Black Entrepreneurship. Can you describe why this Center is needed to help remove the barriers to Black entrepreneurship and your vision for it?

David Clunie: Historically Black Colleges and Universities (HBCUs) have been engines for social and economic mobility for Black Americans for over 150 years. The Center for Black Entrepreneurship (CBE) seeks to break down the access barrier between Black entrepreneurs, professional investors, and business builders by leveraging education, mentorship, access to capital, and opportunity as drivers of success for Black businesses. Building on the strong existing culture of entrepreneurship at Spelman and Morehouse, two of the country’s highest performing HBCUs, the CBE will grow the pipeline of Black business talent and innovation and help bridge the divide between the business and technology sectors and the next generation of Black entrepreneurs. BEA has a view toward scaling the CBE to create a network of centers for Black entrepreneurship throughout the rich pool of talent in the vast HBCU student and alumni networks from over 100 HBCUs nationwide.

Creating this kind of ecosystem and exposure among the most successful businesses, entrepreneurs, investors and some of the brightest minds in America from Spelman and Morehouse Colleges is a sure-fire way to advance the multiplier effect of creating more successful Black entrepreneurs. Those Black entrepreneurs will hire more Black workers; invest their time, knowledge, and capital into the success of other Black businesses; and invest in fortifying Black communities nationwide.

Rhett Buttle: The Covid-19 pandemic disproportionately impacted Black-owned businesses. What types of measures are needed for equitable rebuilding and recovery?

David Clunie: To truly rebuild equitably, we need to confront the incredible disparities Black businesses have experienced starting and running their businesses relative to other businesses owners to prescribe effective solutions. In lending, for example, we need to facilitate fundamentally better access to capital so more Black founders can get the seed funding they need to start businesses and hire more Black Americans. To generate the kind of sustainability Black businesses need to grow, we must also facilitate access to operating capital at levels and interest rates equal to what White businesses typically receive. We also need to encourage the venture capital community to invest in more Black entrepreneurs, especially Black women founders, who receive even less VC capital than their male counterparts.

To level the playing field and build generational wealth for Black families and communities, we need to overhaul the system to create new talent pipelines, facilitate fair access to affordable financing, support capacity building, encourage government and private sector contracting, and boost equity ownership with a view toward building new economic infrastructure that builds wealth for Black businesses and communities to help grow the entire U.S. economy.

Rhett Buttle: We’re seeing states across the country pass or attempt to pass restrictive voter laws. What can business leaders do to combat them?

David Clunie: The right to vote is fundamental to the American experience and our democracy. It should not be a partisan issue. BEA believes the right to vote and maintaining a strong, functioning democracy are important priorities to all Americans. Businesses, in particular, have a vested interest in fostering a stable environment of representative democracy where all of their stakeholders are included because instability and uncertainty are bad for business.

Business leaders can do their part by continuing to speak up for American voters, take the partisanship out of voter engagement, and use their resources to help expand greater access to the ballot box. Business leaders can take steps such as:

Giving employees paid time off to vote;
Promoting education and reliable information around voting integrity, security, and access;
Encouraging their stakeholders to do their civic duty by voting, similar to the support companies give for employees to complete jury duty;
Using their vast resources and influence to support federal legislation that creates a national minimum standard of voting rights in federal elections that will serve as a model and guide for all states to follow.

Rhett Buttle: Are there resources available to support small businesses in combating voter suppression?

David Clunie: Small businesses are the backbone of our economy. Not only do they serve the communities in which they are located, they double as community centers and information hubs for many. That local coffee shop in your neighborhood isn’t just where you can get a cup of joe; it’s where you can pick up a pamphlet or two and learn something new. They are places where one can distribute educational literature, advertise important civic reminders like deadlines for voter registration, early voting, and voting on election day, and they can even offer their business spaces to hold registration drives where voters can sign up and get educated—which may help drive more activity toward their businesses in turn.

Some trusted organizations that provide helpful educational materials and resources include the NAACP Legal Defense and Educational Fund , the Brennan Center for Justice , and Small Business for America’s Future .

This piece originally appeared in Forbes on August 30, 2021. You can view it online here .

Advocating For Main Street: A Conversation With National Small Business Association President Todd McCracken

Tue, 17 Aug 2021 17:59:00 GMT

The past year showed why sound public policy is needed to support Main Street. From the New Deal to the Paycheck Protection Program, laws and programs have helped small business weather crises and legislation in between has spurred entrepreneurship. Even more than ever, the past year showed why sound public policy is needed to support Main Street.

Our economy is beginning to reopen thanks in part to Covid-19 vaccines, but it may also take small businesses longer to recover than larger ones. Some, especially those who primarily have customers overseas, may even need additional support. Legislation to support and rebuild Main Street in the coming months will be critical.

As President of the National Small Business Association (NSBA), Todd McCracken directs all activities of the country’s oldest small business advocacy-oriented association. He became president of NSBA in 1997, having been with the association since 1988.

I recently connected with Todd to discuss the NSBA’s efforts and the impact of Covid-19 on small businesses. I appreciate him taking the time to speak with me and below is a summary of our conversation.

Rhett Buttle : As the nation’s first small business advocacy organization, what types of policies has the NSBA successfully advocated for that have lifted up Main Streets across the country?

Todd McCracken: The National Small Business Association emerged as the first and leading advocate for the small-business community from a time of crisis. The country was still in the grip of the Great Depression at our 1937 founding, but small businesses also were struggling to deal with the policies and regulations of an increasingly involved federal government. Those twin challenges—promoting economic growth and ensuring that governmental policies are supportive and not overbearing—remain the core of our work. We are proud to have helped create systemic guardrails within government that ensure the small business voice is heard within government. We helped create the Small Business Administration’s (SBA’s) Office of Advocacy, and we were at the forefront in arguing for the Regulatory Flexibility Act, which created mechanisms for small-business concerns to be uniquely considered. We have been the small business voice on every national debate affecting small business: increasing access to lending and credit, lowering health insurance costs, reducing the complexity of the federal tax system, and improving access to high-quality employees.

Rhett Buttle: How has the Covid-19 impacted American small businesses and what types of policies are needed for Main Street to re-emerge stronger?

Todd McCracken: The impact of the pandemic has been both widespread and highly targeted, depending on business type and location. It has been incredibly sad to see too many small businesses needlessly forced to close. In fact, just one-third of small businesses have stated they are very confident they will fully recover from the pandemic and economic downturn. But I also have been extremely proud to see the resilience, ingenuity, and innovation of the small business community on full display, and I am optimistic that those characteristics can help us create an even stronger economy for us all.

There are some key ways that government can help. First, this period has pointed out the importance of improving our broadband infrastructure to allow small businesses and their employees to connect from anywhere and thereby be competitive locally and globally. We also have to improve the skills and the accessibility of a qualified workforce—as small businesses begin to emerge from the pandemic, one of the most common frustrations I hear is lack of qualified workers. Finally, access to credit is more important than ever; ready cash is the key to small businesses being able to take advantage of the growth opportunities in front of them.

Rhett Buttle: Can you describe the factors that NSBA weighs in determining whether or not a proposed policy will positively impact small business?

Todd McCracken: At NSBA, we employ an “issues filter” that helps guide us in determining how we should deploy our scarce resources. After all, there is almost no end to policies that impact at least some small business, and the impact of policies on our members can vary to a great degree. Being a very member-driven organization—with members that are very diverse in industry, geography, and political ideology—makes our issue filter critical to ensuring that we make the most of our resources while guaranteeing that each member’s proposals are given equal consideration. Any policy our organization advocates must: have a broad impact on the small business community and must be something we can effectively impact.

Our positions and priorities are completely in the hands of our small business members who are deeply connected to their own small business network in their cities, states, and regions. They are at the heart of what is happening with real small businesses all over the country and what the real needs and opportunities are.

On top of that, we supplement with ongoing surveys and research so that we are confident we are always in touch with the trends and developments in Small Business America.

Rhett Buttle: NSBA was a founding member of the Small Business Roundtable? Why did you join SBR and how does NSBA work with coalitions like it to further its goals?

Todd McCracken: So much of the strength of the small business community comes from its incredible diversity; we have all types of businesses run by all types of individuals in every corner of this country with countless, different priorities. It would be the height of hubris to think that one singular organization could fully represent all the needs and concerns of this rich tapestry. The wide variety of organizations within SBR means that we can reach even deeper into the small-business community—each can specialize while we also come together to speak with a stronger voice on those issues of importance to a broad base of small businesses.

Rhett Buttle: What resources are available to small business owners who wish to become more active in public advocacy?

Todd McCracken: Information is key. At NSBA, we are a constant source of inside information on the latest developments regarding issues that impact small business. Our members receive updates at least weekly on all things small business, but also guidance on how and when to use that information to engage with policymakers. We also provide our members with a broad array of policy briefs and backgrounders for their own use, but also to share with their contacts. Finally, we help with messaging and provide the key talking points that are needed on current issues. NSBA has identified key small-business leaders across the country and invited them to be a part of our Small Business Leadership Council, a grass-tops type of group that meets with their elected officials and are regularly connected with members of the media to help tell the small-business story.

Rhett Buttle: Can you describe how a stable democracy and vibrant Main Street go hand-in-hand?

Todd McCracken: Dealing with the government and our elected officials can often be deeply frustrating for small-business owners. Translating the realities of running a business for officials who have never had that experience can be difficult and sometimes disheartening. Moreover, a government that moves at a snail’s pace can be maddening for a fast-paced entrepreneur. Discontent among small-business owners with politics in the U.S. is unacceptably high - 86 percent of small-business owners say politics have become more partisan in the last 10 years.

But those facts just always put me in mind of the famous quote from Winston Churchill that “democracy is the worst form of government except for all those other forms . . .”

Main Street small businesses would never have meaningful influence on government outside of a democracy, as we can see repeatedly through history. Moreover, small businesses are likely to be hurt first and most deeply by any kind of political instability. Instability leads to economic worries which leads lenders and investors to pull back (from small business first) and consumers to reduce spending. I am completely convinced that the long history of stable democracy in the United States has been a key ingredient in creating and sustaining the world’s greatest and most innovative small-business economy. Anything that endangers that tradition endangers small business.

In our frustrations, it is easy to lose sight of the fact that we CAN impact our government and that most of our officials DO want to help small businesses. It is only through strong and stable democratic institutions that those twin truths can sometimes come together.

Rhett Buttle: What types of resources does NSBA offer small businesses to help them establish a digital or online presence?

Todd McCracken: While NSBA’s core mission is to represent small business in the policymaking and regulatory processes, we have cultivated a number of partnerships to help small businesses navigate doing business online. Our long-time partnership with Dell has netted unique member-only discounts for various products and services that Dell is known for as well as a series of webinars on key topics. We also have an ongoing partnership with Cisco to provide high-level trainings and webinars on remote work, cybersecurity, and more, and we provide resources through our partnership with RingCentral which hosts all our webinar, video conferencing, and meeting services. We will be partnering with Facebook to create educational tools for members to hone their social media marketing, and have worked with other solutions companies like GoSite for online payment platforms and business solutions.

This piece originally appeared in Forbes on August 17, 2021. You can view it online here .

Business Wants Congress to Pass the Bipartisan Infrastructure Package: Here is 5 Ways It Will Help Your Business

Wed, 04 Aug 2021 17:58:00 GMT

The U.S. Senate is currently considering the Bipartisan Infrastructure Deal (BID). There has been a great deal of negotiation to get to this point and we now have a bill that invests $550 billion directly in new spending on the country’s future and supports and empowers entrepreneurship. In a recent conversation with small business owners, Vice President Kamala Harris said, “Our infrastructure as a nation needs an upgrade. The Bipartisan Infrastructure deal for that reason is, we believe, historic because it will make a once-in-a-generation investment in our nation’s infrastructure, positioning our small businesses to compete in the 21st Century,”

It is critical that Congress moves forward with passing this legislation. In a day and age where it is hard to find consensus, this deal has broad support both politically and across the private sector. Just recently, 140 business leaders signed a joint letter touting the framework’s incorporation of “priorities shared by labor, business and state and local governments, as well as the American people” and urging Senate leadership to pass the legislation. These voices add to a diverse and still growing coalition pushing lawmakers to act.

“Our letter is a plea to put the interests of the country ahead of partisan politics,” said Kathryn Wylde, President and CEO of the nonprofit Partnership for New York City. “If our federal government cannot reach bipartisan agreement on something as straightforward as modernization of the nation’s aging and inadequate infrastructure, what are the prospects for solving far more controversial issues that lie ahead?”

Labor and business have also joined forces to push for this cause through the Coalition for Bipartisan Infrastructure Investment, whose partners range from AFL-CIO to the U.S. Chamber of Commerce. In addition to these groups, we’ve seen an outpouring of support from the small business community. As the Small Business Roundtable shared in a statement , “This bipartisan framework shows that it is possible to work across the aisle to build better roads, bridges, transit, and rail to benefit Americans across the nation and enable them to return to work.” In fact, business leaders see it as an imperative to remain competitive.

I recently wrote about how the American Jobs Plan would benefit small businesses. While the legislative landscape has changed with the agreement on the infrastructure package, the BID will also help small businesses. Here are five ways it will.

1. Connecting Americans to High-Speed Internet

Covid-19 prompted many small businesses to either shift to or incorporate a digital component to their operations. It also exposed how millions of Americans do not have access to reliable internet. More than 30 million Americans live in areas without the broadband infrastructure to provide acceptable speeds, particularly in rural communities. The BID invests in broadband infrastructure to connect every American to high-speed internet and there is precedent for this. During the Great Depression, it became clear that Americans without access to electricity were falling behind so the federal government made a historic effort to provide it to every American.

2. Upgrading our Power Infrastructure

Recent power outages across the country have caused a great deal of damage and disrupted economies. The infrastructure proposal will spend more than $70 billion to build thousands of miles of new transmission lines and create a new Grid Authority to mitigate these types of challenges.

3. Modernizing and Expanding Transit

The package makes the largest federal investment in public transit in history by modernizing and expanding transit and rail networks across the country. This will help ease the burden of travel for small business owners and their employees and connect Main Streets across the country. It will also create a more inclusive economy. As Jill Houghton, President and CEO of Disability:IN, notes, “Provisions in this deal would improve the lives of disabled Americans including a focus on a more sustainable economy, a much needed upgrade of public transit systems across the country, and a more competitive marketplace for business disability inclusion.”

4. Repairing and Rebuilding Roads and Bridges

In addition to modernizing our railways, the BID also commits $110 billion to repairing and rebuilding our roads and bridges with the single largest dedicated bridge investment since the construction of the interstate highway system. This commitment will also focus on ensuring equity and safety for all users, including cyclists and pedestrians, which are a hallmark of all vibrant Main Streets.

5. Eliminating Lead Service Lines and Pipes

More than 10 million American families and more than 400,000 schools and child care facilities currently do not have clean drinking water, including in Tribal nations and disadvantaged areas. These poor living conditions destroy lives and communities, as well as close off most paths to entrepreneurship. The plan invests $55 billion in clean drinking water and wastewater infrastructure by removing lead service lines and pipes.

This package recognizes that our country is strongest when all of its communities and Main Streets are thriving and invests in strengthening both. Congress should pass it immediately and then focus on the rest of the Build Back Better agenda. While this package will be a huge step forward for our country -- the largest investment of our generation -- we have more to do to make sure our country is on track, including supporting families and working caregivers. Congress should consider both the BID and the Build Back Better plan because they support physical and human infrastructure.

This piece originally appeared in Forbes on August 4, 2021. You can view it online here .

Supporting Entrepreneurs Through Policy: A Conversation With Center For American Entrepreneurship Founder And President John Dearie

Mon, 02 Aug 2021 17:54:00 GMT

Our country’s economic engine runs best when policies are in place that allow aspiring entrepreneurs to start new businesses. Startup businesses are the main driver for innovations that drive growth and create virtually all net new jobs.

Unfortunately, between 2009 and 2019 the number of new businesses launched in the United States each year fell by about 100,000 below the historical trend, and the fraction of all U.S. businesses that are new has been in decline for 40 years. Sound pro-entrepreneurship economic policies are needed to ensure that Main Street emerges from the pandemic stronger and more equitable.

As Founder and President of the Center for American Entrepreneurship (CAE), John Dearie leads efforts to develop and promote policies that support new business formation, survival, and growth. Prior to forming CAE, he was the Acting CEO of the Financial Services Forum, a financial and economic policy organization composed of CEOs of the largest financial institutions operating in the United States.

I recently connected with John to discuss his vision for CAE and needed policies coming out of Covid-19. I appreciate him taking the time to speak with me and below is a summary of our conversation.

Rhett Buttle : For an aspiring entrepreneur, can you describe how policies at the state and local level enable or hinder starting a small business?

John Dearie: For years, the entrepreneurship and innovation community has regarded public policy as an annoying distraction or irrelevant at best. “Leave me alone and let me build my business,” was the standard posture with regard to Washington and even local government. In recent years, however, it’s become more and more clear that public policy is not only relevant to the success of entrepreneurs and startups, but critical – especially because research has shown that startup rates in the United States have been falling for several decades. Policies regarding research and development funding, commercialization and tech transfer, education and workforce development, immigration, access to capital, regulatory burden and complexity, and taxes all matter to entrepreneurs and their chances of success. Roundtables that my colleagues and I do with entrepreneurs in cities and towns across the country on a regular basis have made that reality very clear. Entrepreneurs around the country are awakening to the importance of public policy, but most are too busy launching their businesses and working hard to survive and grow to actively participate in local or national policy. And even if they wanted to, many don’t know how. Interacting with and effectively influencing government policy is a craft that entails its own skill-set and expertise, not to mention relationships with key policymakers and their staff which take time to establish and cultivate. That’s why I and my colleagues launched the Center for American Entrepreneurship in 2017 – to serve as the critical connection between American entrepreneurs and policymakers. Over the past year we’ve worked to increase government funding of research and development, create a startup visa, improve the geographic distribution of venture capital, address record student debt, and promote entrepreneurship in economically distressed areas of the country and among women and people of color.

Rhett Buttle: How has the Covid-19 pandemic impacted trends in entrepreneurship?

There’s actually something fascinating underway. In the initial months of 2020, entrepreneurship plunged as measured by new business applications, which is tracked by the Census Bureau. That’s exactly what happened during the 2008 Great Recession, so the initial plunge was not a surprise. But then starting in April of last year, new business applications began to surge, and the surge continued. For the full year, new applications reached nearly 4.5 million, a 24% jump from 2019, and 50% higher than the annual average over the previous decade. Lots of head-scratching by economists and people like me ensued regarding how to explain the 2020 surge compared to the Great Recession plunge, and what the surge might mean for American entrepreneurship. In my view, the difference between 2008 and 2020 can be explained by the nature of the two recessions. The Great Recession was caused by an historic financial crisis that nearly wrecked the banking system and caused home prices and financial markets to crash. So when millions of people lost their jobs, they had the occasion to become entrepreneurs, but not the capital they needed. By stark contrast, the 2020 recession was manufactured when the economy was shut down to combat the virus. There was no financial crisis and sources of startup capital available to people who lost their jobs – savings, financial assets, and home equity – were strong. The stock market plunged initially, but then recovered fairly quickly. So you had both the occasion for new business formation and the capital required. In fact, there’s evidence that many people used their unemployment checks to start new businesses. On the other hand, a large portion of the spike in new business applications has been in the “non-store retail” category – people selling products online – so many of these new businesses are sole-proprietorships unlikely to grow quickly or create many jobs. Given that reality, I’ve been skeptical about the longer-term significance of the spike. But more recent Census Bureau data has shown that not only has the surge in new applications continued in 2021, the number of applications by new businesses likely to be employers reached almost 1 million in the first six months of the year – an all-time record. So, something very exciting and promising is clearly underway. We’ll have to keep watching.

Rhett Buttle: How has the pandemic impacted entrepreneur-led economic development?

John Dearie: In addition to its devastating toll in human lives, the Covid-19 pandemic careened through the landscape of America’s new and small businesses like a run-away bulldozer in the initial months of last year. Between February and April of 2020, the number of active businesses in the United States plummeted by 3.3 million, or 22%, the largest drop ever – including 17% of white-owned businesses, 26% of Asian-owned businesses, 32% of Hispanic-owned businesses, and a staggering 41% of Black-owned businesses. Meanwhile, record numbers of startups failed or laid off employees, as many were shut out of the Paycheck Protection Program (PPP) and the Federal Reserve’s Main Street Lending Program. But there are signs of hope and even new life as entrepreneurs have done what they do best – improvise, innovate, and adapt. While some businesses have pivoted completely, re-working themselves to meet new Covid-generated demand – such as breweries producing hand sanitizer – many others have digitized their operations to survive and even thrive in a socially-distanced marketplace. New and small businesses have increasingly turned to online platforms like Facebook, Ebay, and Amazon to open digital storefronts, social media sites like Instagram and Twitter to market to customers, video conferencing platforms like Zoom and Microsoft Teams to interact with suppliers and pitch potential investors, and digital payment tools like PayPal, Venmo, and Square to facilitate sales. At CAE, we expect that this dramatic acceleration of technology adoption driven by the pandemic will likely be permanent. And, as I mentioned a moment ago, an historic surge in new business applications is underway.

Rhett Buttle: Can you describe the importance of digital resources in running a small business?

John Dearie: The trend toward the digitalization of business has been underway for years, but Covid has dramatically accelerated it. According to a recent analysis by consulting firm McKinsey & Co., the pandemic compressed into a few months the adoption of e-commerce by customers that would have otherwise taken a decade, with three out of four Americans having tried a new shopping method due to the coronavirus.

A State of Small Business Report published last May by the Small Business Roundtable and Facebook stated that 51% of small businesses reported increasing their online interactions with customers, 35% had expanded the use of digital payments, and more than a third of businesses that use online tools reported conducting all of their sales online. Last July, PayPal reported 1.7 million new merchant accounts in the second quarter – triple the typical quarterly growth.

Rhett Buttle: What types of policies are needed to emerge from Covid-19 with a more diverse and equitable Main Street?

John Dearie: On June 30th, I testified before the Innovation, Entrepreneurship, and Workforce Development Subcommittee of the House Small Business Committee on the importance of entrepreneurship to the post-Covid recovery. During the hearing, I was asked by U.S. Rep. Marie Newman (D-IL) for three suggestions for how policymakers could best promote thriving entrepreneurship. I answered that working to make entrepreneurship much more inclusive is the top priority. Entrepreneurship in American remains an overwhelmingly white and male phenomenon. That needs to change, for several reasons. First, entrepreneurship is a powerful driver of economic growth and job creation – we need more entrepreneurship, therefore, in economically distressed areas of the country. Second, entrepreneurship is a powerful pathway of economic and financial empowerment for entrepreneurs and their employees, and that opportunity needs to be open to all Americans. Finally, if we are to succeed in reversing the multi-decade decline in entrepreneurship, we need much higher rates of participation by women entrepreneurs and entrepreneurs of color. With all this in mind, CAE’s policy agenda includes ideas to address healthcare, childcare, and retirement security – which are major barriers to more women entrepreneurs – and to get more capital to women founders and entrepreneurs of color.

A recent example of legislation aimed at enhancing equity and diversity is the Next Generation Entrepreneurship Corps Act, which was introduced on February 23rd by U.S. Reps. Jason Crow (D-CO) and Troy Balderson (R-OH), and Senators Chris Coons (D-DE) and Tim Scott (R-SC). The Act will promote entrepreneurship and job creation in underserved communities across the country by way of a new competitive fellowship program that will select 320 entrepreneurs annually from diverse backgrounds. The selected fellows will receive startup capital, healthcare coverage, deferral of student loans, mentoring, and support from an advisory board of CEOs and venture capitalists to start new businesses in distressed or low-income areas.

Rhett Buttle: How does the research of the Center for American Entrepreneurship help inform policymakers on economic development at the local, state, and federal levels?

John Dearie: CAE is a nonpartisan research, policy, and advocacy organization, and each leg of that stool is important – supporting and informing the other two. Original research broadens and deepens our understanding of entrepreneurship – its importance to economic vitality and its challenges – which, in turn, informs our policy agenda, which then determines our advocacy efforts. And when we bring improvement ideas to policymakers and their staff, they always raise new questions, which opens up new opportunities for original research. And, of course, our research is critical to our efforts to educate policymakers – helping us connect the dots in their minds between new business formation, innovation, economic growth, job creation, and expanding opportunity.

An important mechanism for sharing our research and other insights with policymakers that we established in 2019 are the House and Senate Entrepreneurship Caucuses. A caucus is best thought of like a club – an informal framework within which policymakers interested in a particular topic can learn more by conducting inquiries, roundtables, and briefings. The membership of a caucus also serves as a list of potential co-sponsors for legislation pertaining to that particular topic. So, caucuses are an informal, but important part of the policymaking machinery in Congress. There are hundreds of caucuses in Congress and yet, unbelievably, there had never been an Entrepreneurship Caucus in either chamber of Congress until 2019. Correcting that glaring omission was a major priority for CAE in our first couple of years following our launch in 2017. And the new House and Senate Entrepreneurship Caucuses have been very active.

Rhett Buttle: Are there any resources you would recommend to help guide policymakers and entrepreneurs?

John Dearie: We’ve built CAE’s website to be something of a one-stop shop for all kinds of information pertaining to entrepreneurship. It includes all of our research reports, an explanation of our full policy agenda, all the op-eds and blog posts that we’ve written on a wide array of entrepreneurship-related topics and issues, as well as links to other key organizations and government agencies relevant to entrepreneurship. Our Twitter, LinkedIn, and Facebook feeds are also a great way to stay in touch with legislative and regulatory developments important to entrepreneurs and startups.

Rhett Buttle: What’s one other thing you want American entrepreneurs to know?

John Dearie: Entrepreneurship is a topic whose time has finally come in Washington, DC, for several reasons. First, all of the engagement and education of policymakers that we at CAE and other organizations around town have done in recent years has significantly enhanced awareness of the importance of entrepreneurship to the issues that policymakers care about. Second, as I mentioned a moment ago, the creation of an Entrepreneurship Caucus in both the House and Senate is a major development that helps drive the entrepreneurship agenda. Finally, the damage inflicted to the economy by Covid-19 and the need now to accelerate economic growth and job creation has moved entrepreneurship to center stage. Putting those three important developments together, at CAE we believe that we have an unprecedented opportunity to make major progress on an ambitious pro-innovation, pro-entrepreneurship agenda in 2021 and 2022.

This piece originally appeared in Forbes on August 2, 2021. You can view it online here .

3 Steps For Managing Your Small Business’s Taxes

Fri, 11 Jun 2021 17:46:00 GMT

Filing business-related taxes can often be a time-consuming and complicated process, especially for new entrepreneurs. Small business owners need a good understanding of the federal, state, and local taxes required to file. The types of taxes can range from income, employment, excise, and sales.

It is critical that business owners are set up for success well before tax season. Here are three steps for managing your small business’s taxes.

1. Find the Right Accountant

Most small business owners hire an accountant to ensure that all tax filing and payments are made correctly. Accountants help reduce the amount of time business owners spend on taxes and booking. Generally, an accountant’s services can range from estimated tax payments to asset depreciation, and this investment in your business is vital to your long-term success. Accountants are constructive partners for your business and are essential members of the broader support team. There are many accountants in the market, but small business accounting requires specific expertise. Be sure to prioritize those specializing in small business accounting, especially those that have worked with businesses similar to your size and structure. The best place to get recommendations is from other business owners. Talk to similar or local businesses to ask for specific recommendations.

2. Determine Your Tax Liability

One of the first conversations you have with your accountant will be to determine your tax liability, which will guide how you file and pay your taxes. Each business tax liability is unique and is informed primarily by four factors: 1) business structure, 2) location, 3) asserts, and 4) number of employees. A business's structure will determine the type of federal income tax that a business will need to file and states and communities require businesses to file different types of taxes. In addition, the type and quantity of business assets (i.e., stock, equipment, property, etc.) may impact a business's overall tax liability. Businesses with employees will need to file employment-related taxes. Self-employed business owners will need to file a self-employment tax.

3. Think Ahead to Avoid Common Mistakes

Beyond hiring an accountant, businesses can do a few additional things to avoid some common mistakes. For example, most small businesses are going to need to pay estimated taxes. Be sure to mark your calendar each year for the four quarterly estimated tax payments. In addition, keeping accurate records is a good business practice, but this also helps when filing tax returns. Finally, business owners need to be prepared for the unexpected. Be sure to keep a rainy day fund that can be used to cover unexpected costs associated with the business throughout the year. However, business owners need to fully protect the income you set aside for tax purposes and not include it as part of the rainy day fund.

There are many additional resources available online, but be wary of resources that direct you to a specific product or service. Be sure to check out the Small Business Administration’s (SBA) guide on what businesses need to do to file correctly. For more information and resources, check out the Small Business Resource Center for the 50+ at smallbizrc.org .

This piece originally appeared in Forbes on June 11, 2021. You can view it online here .

A Tax Credit For Helping Your Employees Get The Shot -- 3 Key Things Business Owners Should Know About The Updated Paid Leave Tax Credit

Mon, 10 May 2021 17:40:00 GMT

As our country begins to rebound from Covid-19, we see signs of progress. In fact, recently President Biden announced a new goal for 70 percent of adults to have at least one shot by Independence Day. During a recent event , Andy Slavitt, Senior Advisor to the White House Covid-19 Response Team, laid out the state of vaccinations in the United States. Nearly four out of five senior citizens have been vaccinated, while less than half of adult workers have received a vaccine. However, there is a silver lining to this information.

“The good news is that the vast majority are not opposed. They say they will get vaccinated, but three important things will influence them. They need it to be easier, they want to get their basic questions answered, and the more people they know who are vaccinated in the workplace and among their families, the more likely they are to do it themselves. So employers play a critical role in all three of those things,” he said.

Employers can make it easier for their employees to get vaccinated through guidance. In fact, the research shows that small businesses see vaccinations as a way to get their business and the economy up and running again. Additionally, Slavitt shared how employers are offering incentives for receiving the vaccine, such as paid time off. As part of a change under the American Rescue Plan recently passed by Congress, small businesses who give their employees paid time off for vaccinations can now take advantage of the paid leave tax credit.

Here are the three key things you need to know.

1. Available to fewer than 500 employees and the self employed: The paid leave tax credit allows businesses and organizations with fewer than 500 employees to claim refundable tax credits to be reimbursed for the cost of providing paid sick and family leave to employees because of Covid-19. This credit includes leave for Covid-19 vaccinations and time to recover and is available to eligible employers from April 1, 2021, through September 30, 2021. Self-employed individuals are also eligible for tax credits.

2. Fairly generous credit : The paid leave tax credit goes against the employer's share of the Medicare tax and is refundable if it exceeds the employer's share of the Medicare tax. It is equal to sick leave wages paid for Covid-19-related reasons for up to two weeks, or 80 hours, and is limited to $511 per day and $5,110 total. The tax credit for paid family leave wages is equal to family leave wages for up to twelve weeks and is limited to $200 per day and $12,000 total. More information can be found on the Internal Revenue Service’s Paid Leave Tax Credit Resource Center .

3. Easy to claim : Most eligible employers can claim the credit on Form 941, Employer's Quarterly Federal Tax Return PDF , which is used by most employers to report income tax, as well as Social Security and Medicare taxes withheld from employee wages. If employers do not have enough federal employment taxes set aside, they can request an advance of the credits by filing Form 7200, Advance Payment of Employer Credits Due to COVID-19 . Self-employed individuals can claim similar tax credits on Form 1040, U.S. Individual Income Tax Return.

“What you can do by taking advantage of this credit is keep that money that you have right now. In fact, if you have paid for more paid leave time than you actually have deposits right now, you can apply to the government and in a few weeks, you’re going to get that excess money back,” said Thomas West, Deputy Assistant Secretary for Business Domestic Tax in the Office of Tax Policy at the U.S. Department of Treasury, during the event.

Small businesses have been hit hard by the pandemic and the vaccines are the key to recovery. The paid leave tax credit provides extra assistance to business owners in getting the vaccine and supporting their employees in doing so.

This piece originally appeared in Forbes on May 10, 2021. You can view it online here .

Three Key Steps To Applying For A Restaurant Revitalization Fund Grant

Sat, 01 May 2021 17:38:00 GMT

On Monday at noon ET, the Small Business Administration’s (SBA) Restaurant Revitalization Fund will begin accepting applications. This $28.6 billion grant program is specifically designed to help restaurants whose business has significantly dropped because of closures and crowd size restrictions due to Covid-19. If you are a restaurant owner and need financial support, you should apply today.

“Over the last year, few reminders of the economic pain of this pandemic have been as stark as seeing our favorite local restaurants closed,” said John Standford, Co-Executive Director of the Small Business Roundtable . “With the launch of the Restaurant Revitalization Fund, these businesses and their employees see a light at the end of the tunnel. We know more must be done, but commend SBA and the White House for moving swiftly to open this needed relief tool."

SBA has conducted outreach across the country, meeting with Black, Hispanic, Asian American and Pacific Islander, Native, LGBTQ, Women and Veteran restaurant owners, and has found that demand for Restaurant Revitalization Fund grants exceeds the available amount of funding. The agency has participated in a number of roundtables to help restaurant owners prepare for applying.

"Restaurants asked and Congress listened. Independent restaurants and bars come in all shapes and sizes, and existing one-size-fits all Covid-19 relief policies like PPP left out a large majority of these businesses. The Restaurant Revitalization Fund will be a lifeline for many of the 11 million people who depend on this industry for a paycheck, but we have more work to do. Demand for relief is massive – over 41,000 people registered on the SBA's website within one hour of going live – and Congress will likely need to legislate additional funds for this program," said Erika Polmar, Executive Director of the Independent Restaurant Coalition, which launched during the pandemic.

Here are three key steps you can take to apply today.

1. Register for the Program. Go ahead and visit SBA.gov/restaurants to determine if you’re eligible for a grant because this site has all of the documentation and instructions you’ll need. If you are eligible, you can register for the program now at Restaurants.SBA.gov , which will make it easier to apply once the application process opens.

2. Make Sure you Have all the Necessary Information to Apply. Restaurant owners that were open before 2020 will first need their Employer Identification Number, Social Security Number, or Individual Taxpayer Identification Number, as well as an address for yourself and anyone that owns more than 20 percent of your business. You will also need:

PPP Loan numbers
List of affiliated businesses (An affiliate business is a business in which the eligible applicant business has an ownership interest of not less than 50 percent, or in which the eligible applicant business has the contractual authority to control the direction of the other business, based on arrangements or agreements in place as of March 13, 2020)
Proof of your approved reorganization plan if you have filed for bankruptcy
Gross receipts documentation, which are documents demonstrating gross receipts and eligible expenses, which include business tax returns (IRS Form 1120 or 1120-S), IRS Forms 1040 Schedule C or F, partnership IRS Form 1065 (including K-1s), bank statements, financial statements, such as income statements or profit and loss statements, and IRS Form 1099-K

Applicants that opened restaurants in 2020 will need three months of bank statements, filed or prepared 2020 federal tax returns filed, 2020 and 2021 point of sales reports, a CPA comfort letter, payroll documents (941s), outdoor seating expenditures invoices and payments, and business debt lender loan statements.

Owners of a brewpub, tasting room, taproom, brewery, winery, distillery, or bakery will need documents that show evidencing that show onsite sales to the public comprise at least 33 percent of gross receipts for 2019, which may include Tax and Trade Bureau (TTB) Forms 5130.9. For businesses who opened in 2020, the applicant’s original business model should have projected at least 33 percent of gross receipts in onsite sales.

Inn owners will need documents showing that onsite sales of food and beverage to the public comprise at least 33 percent of gross receipts for 2019. For businesses who opened in 2020, the applicant’s original business model should have projected at least 33 percent of gross receipts in onsite sales.

3. Seek Help if Needed. If you need assistance with your application, reach out to the SBA for assistance in preparing your application. The agency’s call center support is available at 1-844-279-8898 Monday through Friday from 8:00 am-8:00 pm ET, and you can also contact your local SBA District Office.

“The SBA has resources in more than 30 different languages to help restaurant owners apply for this funding and we are here to help answer any questions in helping them sustain their business,” said Han Nguyen, Deputy Associate Administrator of Office of Communications and Public Liaison for SBA.

This has been an unprecedentedly tough year for all businesses, especially restaurants. The Restaurant Revitalization Fund will help those are struggling survive. If you are a restaurant owner and need support, apply for a grant as soon as possible.

This piece originally appeared in Forbes on May 1, 2021. You can view it online here .

Details on the SBA's Restaurant Revitalization Fund

Wed, 28 Apr 2021 18:44:00 GMT

To help you prepare for the Restaurant Revitalization Fund launch, here are some steps you can take.

STEP 1: Visit SBA.gov/restaurants to determine if you’re eligible for a grant. This site has all of the documentation and instructions you’ll need.

STEP 2: Join a restaurant relief round table to learn how you can prepare to apply. We’re hosting six events with guests from the Small Business Administration (SBA) this week; you can join any of them and also watch the recordings on demand. Register on our resources page here .

STEP 3: Make sure you have the information you’ll need to apply ready to go:

The EIN/SSN/ITIN and address for yourself and anyone that owns more than 20% of your business
PPP Loan numbers
List of affiliated businesses. An affiliate business is a business in which the eligible Applicant business has an ownership interest of not less than 50 percent, or in which the eligible Applicant business has the contractual authority to control the direction of the other business, based on arrangements or agreements in place as of March 13, 2020
If you’ve filed bankruptcy, proof of your approved reorganization plan
Gross Receipts Documentation: Any of the following documents demonstrating gross receipts and, if applicable, eligible expenses:
Business tax returns (IRS Form 1120 or 1120-S)
IRS Forms 1040 Schedule C or F
For a partnership: partnership’s IRS Form 1065 (including K-1s)
Bank statements
Financial statements such as Income Statements or Profit and Loss Statements
POS report(s), IRS Form 1099-K
For applicants that opened in 2020: Three months of bank statements, 2020 Federal Tax Returns filed or 2020 Federal Tax Returns (Prepared but not yet filed), 2020 and 2021 Point of Sales Reports, CPA Comfort Letter, Payroll Documents (941s), Outdoor Seating Expenditures (Invoices / Payments), Business Debt (lender loan statements)
For applicants that are a brewpub, tasting room, taproom, brewery, winery, distillery, or bakery: Documents evidencing that onsite sales to the public comprise at least 33.00% of gross receipts for 2019, which may include Tax and Trade Bureau (TTB) Forms 5130.9 or TTB. For businesses who opened in 2020, the Applicant’s original business model should have contemplated at least 33.00% of gross receipts in onsite sales to the public
For applicants that are an inn: Documents evidencing that onsite sales of food and beverage to the public comprise at least 33.00% of gross receipts for 2019. For businesses who opened in 2020, the Applicant’s original business model should have contemplated at least 33.00% of gross receipts in onsite sales to the public

STEP 4: If needed, reach out to the SBA for assistance preparing your application. Call center support is available at 1-844-279-8898 (hours: Monday-Friday 8am-8pm ET) and you can also contact your local SBA District Office .

STEP 5: Apply on day one—or as soon as possible—to start your process and help demonstrate our industry’s need for this program. Stay tuned here; we’ll let you know as soon as applications are live.

Thank you to our partners at the Independent Restaurant Coalition for this critical information.

You can watch the PPSI & other business partners discussion with SBA Administrator Guzman on the Restaurant Revitalization Fund on our Facebook page here .

Meet The Woman Fighting For All Of America’s Main Streets -- SBA Administrator Isabella Casillas Guzman Seeks To Not Only Recover, But Build Back Better

Tue, 20 Apr 2021 17:30:00 GMT

Isabella Casillas Guzman, the newly confirmed Administrator of the Small Business Administration (SBA) has taken the reins of the agency at a critical time for Main Street. The Covid-19 pandemic has ravaged small businesses. In fact, a recent Federal Reserve Bank survey found that 30 percent of -- or 9 million -- small businesses in the U.S. do not expect to survive 2021 without additional government assistance. Another survey the Fed conducted with AARP revealed that many small business owners ages 45 and over struggled to make it through 2020 and that their revenue was much lower than expected. To help Main Streets across America bounce back, Administrator Guzman is at the helm of implementing SBA’s programs swiftly and effectively.

The Biden Administration is closing in on its first 100 days and has been focused on making sure small businesses and innovative startups recover and build back better from the pandemic. Administrator Guzman has been in her new role for a little over a month. Already the Biden Administration has made changes to the Paycheck Protection Program , and the American Rescue Plan will hand small businesses several other critical recovery programs including the Restaurant Revitalization Fund.

That’s not all. More may be coming if President Biden gets his wish and the American Jobs Plan passes Congress. As the agency undertakes the significant task of overseeing a serious amount of capital and helping to rescue America’s economic engine -- small business -- I had the good fortune of speaking with her in one of her first sit-down interviews. Below is a summary of our conversation.

Rhett Buttle: Tell us a bit about yourself and what experiences you plan to bring to this position?

Administrator Guzman: I grew up in a small business family. My father owned and operated multiple veterinary hospitals in California, and, as a kid, I loved being at his clinic, watching him interact with his clients and seeing how much he and all the other small business owners meant to the neighborhood. As I grew older and began working with him after school and on weekends, I started to understand how much work he put in to his business – how challenging it was to have his workday 100 percent focused on his clients and treating their animals, and then shifting hats during lunch and into the evening to keep up on the books, compliance, ordering, payroll, and workforce issues. I remember the large briefcase he would bring home full of paperwork.

From a young age, I learned firsthand how small business owners wear multiple hats and need a team, and I believe that the SBA -- with the vast array of programs that we offer -- can be an important part of that team.

Over my career I have been dedicated to helping small businesses start and grow. I have partnered to start businesses myself and advised founders. I also served in leadership at the U.S. SBA during the Obama-Biden administration; and then as the Small Business Advocate for California, the fifth largest economy in the world. I bring all those experiences with me to my position today, but most of all, I bring a passion and deep respect for small businesses and innovative startups and the impact they have on our communities, our nation, and the world. They define our Main Streets, deliver the products and services we depend on every day, and innovate to solve global problems.

Buttle: As incoming SBA Administrator, what are your top priorities in helping small businesses recover from Covid-19?

Guzman: This pandemic and the resulting economic crisis have gone on longer than anyone anticipated. Right now, millions of small business owners are wondering how much longer they can hold on -- the struggle is unrelenting. I witnessed this firsthand in California. At the SBA, we are here to help. Together with the dedicated mission-oriented staff at the SBA, I have made it my top priority to deliver that help swiftly, effectively, and equitably.

That’s why, when I first took office, I nearly tripled the amount of funding businesses could receive from our Economic Injury Disaster Loans (EIDL), which have become an important lifeline for so many impacted businesses. Beginning the week of April 6, EIDL maximum loan amounts increased to $500,000 from the previous cap imposed of $150,000. And our team is busily reaching out to those eligible who applied under the old cap.

And through the American Rescue Plan Act, which was signed into law on March 11, by President Biden, we’re working diligently to release billions more in much-needed aid – with $15 billion in flexible disaster program grants for the smallest and most severely impacted businesses, a $28.6 billion Restaurant Revitalization Fund grant program, a $16.2 billion Shuttered Venue Operators Grant program, and more than $7 billion more for Paycheck Protection Program loans. We’re also building the Community Navigator Pilot program to increase resource and service delivery of SBA’s programs to small businesses -- a grassroots, hyper local network that will ensure our underserved small businesses are connected to resources.

We know that we’ve got our work cut out for us. But we intend to be as entrepreneurial as the small businesses we serve. And, with every loan, every investment, every grant, and every connection we make with our small businesses and innovative startups, we will work to be sure that we’re delivering our services equitably -- recognizing the changing face of entrepreneurship. We know that women- and minority-owned businesses were already facing historic barriers limiting their growth, and that opportunity gaps have only widened during the pandemic. That is why it is imperative that we review every program in the SBA portfolio to ensure equity is a top priority.

Buttle: Business owners of color and women-owned businesses were disproportionately impacted by the pandemic. What steps do you plan to take to create a more equitable small business ecosystem?

Guzman: Systemic racism is a persistent roadblock for women and minority small business owners. This was true before the pandemic, and unfortunately, it’s even more true now. That’s why, together with President Biden and Vice President Harris, I’m intent on making inclusion and equity top priorities. At the SBA, that often means making sure we’re reaching the smallest of the small businesses – particularly the businesses that do not have in-house lawyers, accountants, or special connections that give them an edge.

We are laser-focused on both design and implementation of our programs because we know it’s not just about access, but also about connection. We need to meet all of our small businesses where they are.

The SBA offers an array of resources and programs to help minority and underserved businesses reset and retool during these challenging times -- but we’re looking at doing more through policy and process to remove those historic impediments, and partnerships and outreach to more equitably reach and distribute our services to business owners of color and women-owned businesses.

We have taken major steps to help the small businesses that need the help most. One example is our soon-to-be-launched Restaurant Relief Grant Program, which will prioritize women, veterans, and socially and economically disadvantaged businesses in its first 21 days, as well as designate set-aside funding for the smallest businesses.

One of the things I am particularly excited about -- thanks to American Rescue Plan – is our work around the upcoming Community Navigators Pilot program, which was created to help make sure that small business resources are more accessible than ever to entrepreneurs with disabilities, veterans, women, immigrants, minority small business owners, and those from rural and other underserved communities across the country.

This $100 million grant program will utilize a “hub and spoke” model to enlist trusted, culturally-knowledgeable community navigators to conduct targeted outreach to small business owners that lack access to critical resources, services, capital and/or networks. The local navigators will include private nonprofit organizations, SBA resource partners (Small Business Development Centers (SBDCs), Women’s Business Centers, and SCORE), Tribes, states, and local governments with demonstrated excellence in outreach and service/resource delivery to small businesses in underserved communities. This is a critical step to help ensure SBA’s great resources reach all our aspiring and established entrepreneurs for greater equity and access to opportunity to reopen, startup, grow, and be resilient.

But this is just the tip of the iceberg. We know much more work needs to be done to level the playing field.

Buttle: For someone who is planning on starting a small business in 2021, what advice would you give?

Guzman: The pandemic and resulting economic crisis have brought extreme hardship to many sectors, but also incredible new market opportunities for companies meeting new consumer trends and demands. I would say that we’re beginning to see a light at the end of the tunnel thanks to the American Rescue Plan and the progress the Biden-Harris Administration has made on the vaccine rollout. I’m hopeful that 2021 will be a good year for small businesses. And my hope is bolstered by the fact that we are rolling out billions of dollars in economic relief for small businesses at all stages of growth.

Now more than ever, there is a real opportunity for our economy to come back stronger. And if that is going to happen, small businesses must continue to be the driving force they’ve always been. That means that we need people to be risk takers and start their own businesses or grow their existing businesses. If you’re ready to tap into the entrepreneurial spirit that is our nation’s beating heart, we want you to know that you won’t be alone. Help is here through the SBA.

We have many tools available to help you find access to capital and unlock new revenue streams, including tapping into the $539 billion federal marketplace, and we have counseling services that will help you map out your path to success. Go to SBA.gov to find your SBA district office, your local SBDC, your local SCORE counselor, your local Women’s Business Center, or your local Veterans Business Outreach Center -- or the myriad other resource centers affiliated with the SBA -- and plug into the powerful and vast networks and resources that are available. We’re here to make your dream a reality.

Buttle: Given the unique circumstances, do you see the SBA playing a new or more innovative role over the next four years?

Guzman: The SBA has changed tremendously over the course of the pandemic. We’ve already delivered approximately $900 billion in economic aid to America’s entrepreneurs, small businesses, and nonprofits. That’s nearly $1 trillion to help our nation’s small businesses weather this pandemic and the resulting economic crisis. We’re reaching more small businesses than ever before. And I’m committed to working diligently to help ensure that this historic level of recovery funding will bring businesses back, create jobs, and grow an equitable economy that works for everyone.

I’m also committed to making sure that the SBA meets our small businesses -- and the diversity they represent -- where they are. Since this pandemic began, we’ve been asking our entrepreneurs to pivot and adapt to the new Covid-19 marketplace. If the SBA is going to meet the needs of our nation’s small businesses, then we have to do the same.

How we pivot and grow will determine not only our future, but the future of our emerging entrepreneurs and America’s economy. That means looking at all our programs through an inclusive lens, focusing on customer-centric design, and powering the SBA with technology to make sure we are building resources and support networks that work for everyone. I’m committed to being a good steward and using innovation and collaboration to help strengthen the newly scaled SBA so that it can help make all entrepreneurial dreams come true for all of America’s entrepreneurs.

Buttle: Anything you want to add?

Guzman: Small businesses are critical to our economic recovery, and I am working hard to help America’s small businesses start, grow, and be resilient. But they are facing unprecedented challenges and need our full engagement and support to survive and thrive again. I want small businesses to be recognized and feel like the giants they are in our economy. I will act as their voice every day and work hard to ensure that happens.

This piece originally appeared in Forbes on April 20, 2021. You can view it online here .

COVID-19's Personal Finance Toll on Older Entrepreneurs

Mon, 19 Apr 2021 18:50:00 GMT

IyaSokoya Karade remembers clearly the day she had to close the doors of her business due to the pandemic.

Karade, 55, is the CEO and founder of the Athletic Arts Academy in Orange, N.J., a 10,500-square-foot youth athletics training facility. "Being a provider of in-person services, we were mandated to shut down March 16 [2020] and we were in a state of shock," she said. "I had to embrace that reality."
The first order of business was to try to stay alive. "The second thing: What are you going to do about your business? We were just throwing things at the wall," she added.
After a few months Karade asked herself: "Do I even want to come out of this and continue? The debt was mounting. It was like watching water go into a bucket with a hole in it. And even though we were in the black, my business was not making me rich. I run it as a gift of the heart."

The Scary Time for Entrepreneurs in the Pandemic

And, she added, "I have invested a lot of money, time and sweat equity to create this beautiful space. So, to see it go dark, even for a while, was scary."
Karade is one of many small business owners over 50 slammed by the pandemic. COVID-19 has taken a serious toll on their personal finances. Many have waived salaries and taken money out of their personal savings to pay business expenses, sometimes endangering their current and future financial security.
The Federal Reserve Bank of New York and AARP recently published a study on this, " The State of the Older Entrepreneur During COVID-19 ," and what they found wasn't pretty.
During Spring 2020, at the peak of the first wave of COVID-19, more than 20% of small businesses closed, according to the report. But business closings were highest among business owners 45 and older (one in four). Although the total number of small businesses has recovered, the number of firms now owned by people 45+ is down 9%; by contrast, there's been a decline of just 2% for firms with owners under 45.
The researchers' interviews with 25 business owners who are 45 and older found that they — and particularly business owners of color like Karade — had difficulty accessing funds to stay open and have experienced significant personal financial hardship during COVID-19.

"While the pandemic has impacted entrepreneurs and small business owners across the board, our research shows that Black, Latino and Asian entrepreneurs have been particularly hard hit," said Nancy LeaMond, AARP executive vice president and chief advocacy and engagement officer (and a Next Avenue Influencer in Aging ).

Prospects for Older Entrepreneurs of Color

"Older entrepreneurs of color tended to dip into their own pockets, using personal funds to cover business expenses," LeaMond added. "There could be significant implications down the road, as these folks now have less in savings for retirement or to help them weather another economic downturn."
Similarly, a new small business survey by the 12 Federal Reserve Banks (" The 2021 Report on Firms Owned by People of Color " ), fielded last fall, found that Black business owners were more likely to use personal funds and more likely to borrow money from a spouse, family, or friends than any other group of entrepreneurs. Some 74% of Black business owners used their personal funds to keep their enterprises afloat; 38% borrowed money from a spouse or other family or friends and 25% worked a second job.
In the AARP/Federal Reserve Bank of New York study, more than double the number of Black and Asian small business owners (35% and 33% respectively) borrowed funds from family and friends than white owners (16%). And 70% of Black business owners paid business expenses with personal funds, compared to 48% for white owners.
One in four age 45+ owners is concerned about their personal credit score due to the pandemic, a fear that's even higher among Black, Latinx and Asian owners.
Half of surviving firms with owners 45+ overall depicted their business' financial condition as "fair" or "poor" at the end of 2020. But that was true for 75% of the Black-owned firms and 66% of the Latinx-owned firms.
"I would have thought that the situation would have been better for older entrepreneurs — they have longer credit history, they're better established. But this wasn't the case," said Claire Kramer Mills, assistant vice president at the Federal Reserve Bank of New York and one of the report's authors.

Rethinking the Lending Ecosystem

The dearth of lending to businesses owned by persons of color is noteworthy.
"We need to design a lending ecosystem that works for older businesses of color," said Colin Danly, a senior associate at Public Private Strategies , which worked on the AARP/Federal Reserve Bank of New York report. "This report shines a light on PPP funding's [PPP is the federal government's pandemic Paycheck Protection Program for small business owners] inequitable distribution, particularly for Black/African-American business owners who received on average $37,000 less than white-owned firms."

Credit: Federal Reserve Bank of New York/AARP
PPP and other pandemic loans and grants have helped keep Karade afloat. Last year, she received a $6,000 PPP loan, over $97,000 in loan and grant money from the Small Business Administration's Economic Injury Disaster Loan Program, plus others. She was recently approved for a $25,000 loan from the New Jersey Economic Development Agency.
"I was able to keep my employees paid, so they were taken care of," Karade said. "I was able to cover some of the rent which my landlord had not forgiven but had given me flexibility to pay as much as I could."
But she had to push lenders and companies that billed her company and herself personally in order to help keep the enterprise alive without destroying her personal finances.
"I called and said, 'Look, what kind of deal can I make with you? Can you reduce this payment? Can you put this payment on furlough? What can you do to help reduce my expenses?'" Karade noted.
"I didn't want to default. I just got my personal credit really good, and I had no outstanding debt. I didn't want to fall into a hole," she said. "Everybody was willing to do that, from my landlord to Verizon, our internet and phone provider, and other utilities."

Creative Thinking, Pandemic-Style

Karade also got creative to hold onto her customers and find new ones. For one thing, she grabbed a few pieces of her gym's equipment, set up in her living room space and developed an online program called "living room gymnastics" via Zoom.
"I had to get past the awkwardness of being in front of the camera," Karade said, "but I focused on: What is my purpose now?"
She said her clients knew her business couldn't offer refunds, but it could help their child stay active. "I was trying to serve these children, taking into consideration that all of this [the pandemic] is also impacting their emotional and mental health."
For inspiration, Karade thought of her days growing up, raised by a single mother who worked rotating shifts as a security guard at Rutgers University.
"As a child it was the activities I did with other people that saved me," she said. "It was being with other kids. Grab a jump rope, come on, let's make a drill team, come on, let's do some flips. Let's run some races, let's play kickball. There were people in the community who would organize these things just out of the blue. And it kept a lot of us anchored."
Fortunately, it seems as things are turning around for entrepreneurs. Optimism among small business owners in the U.S. continued to rise in March after the passage of the American Rescue Plan and the easing of Covid-19 restrictions in many states. The NFIB Small Business Optimism Index came in at 98.2 in March, up 2.4 points from the previous month, according to the National Federation of Independent Business.

The New Optimism of 2021

The number of owners who think it's a good time to expand also increased, as did the percentage who expect better business conditions over the next six months.
The report from the Federal Reserve Bank of New York and AARP revealed similar optimism. Older business owners who survived the earlier stages of the crisis believed their sales would return to pre-pandemic levels in 2021.
One of those optimists is Karade, whose facility is operating at half-capacity and staying COVID-10-safe with social distancing and open windows.
"I feel like I'm going to make it. There is something within that says it's going to be okay. It's good. Just keep working, keep being true to it," she said. "I just gotta hang in there."
Originally appeared in Next Avenue on April 19th, 2021.

Kerry Hannon is the author of Great Pajama Jobs: Your Complete Guide to Working From Home. She has covered personal finance, retirement and careers for The New York Times, Forbes, Money, U.S. News & World Report and USA Today, among others.

Small Business Leaders Need to Become Vaccine Evangelists

Mon, 19 Apr 2021 09:26:00 GMT

Small business owners are the key to reopening the economy. Leadership on vaccines is the next step

The Covid-19 pandemic impacted every industry of our nation's economy. Hardest hit were small businesses , especially in communities of color . Many have been forced to close and more are struggling to stay open. The only way to change this trend is by fully reopening the economy, and that cannot happen until enough Americans are vaccinated . The group that can be the most effective in this area is also the most impacted by the pandemic: small business owners.

Small business is the most trusted institution in the United States, according to Gallup, and represents more than 90% of all businesses in the country. Business ownership is also a proven path to addressing the racial wealth gap. Before the pandemic, 43% of small businesses were opened in low-wealth communities, creating jobs and income in these economically disadvantaged areas.

A completely reopened economy will allow businesses to operate at full capacity, bring normalcy back to communities, and reduce staffing issues caused by Covid-19 exposure and infection.

The Centers for Disease Control and Prevention (CDC) estimates that between 70-85% of Americans need to receive the vaccine to achieve herd immunity. For that to happen as quickly as possible, more small business owners need to become vaccine champions, starting with themselves and their businesses.

Our organizations jointly fielded a survey this year of more than 3,300 U.S. small employers and found that 64% say it is very important that their employees get vaccinated. More than half have had formal conversations, including staff meetings and one-on-ones with employees, and more than 80% of respondents are willing to encourage and incentivize employees to get vaccinated. The survey also found that 80% of small business owners plan to get a vaccine, which is 10% higher than the overall public. While these numbers are encouraging, they also demonstrate why they can and should be higher.

With all of the misinformation that was purposefully or accidentally shared in the past year, it is understandable to be skeptical about the vaccine. Since employees often look to their employers for information, it is important to remind them that all FDA-authorized Covid-19 vaccines are safe and effective. They will not alter one's DNA nor give people Covid-19 or cause them to test positive for it. Covid-19 vaccines are free, and people do not need insurance or money to get vaccinated or to worry about any co-payments, deductibles, or unexpected bills for receiving one.

Nobody has to take our word for this, either. Many agencies and organizations, including the CDC, have compiled easy-to-digest information packets discussing the safety and benefits of the vaccines.

If small business owners are willing to champion vaccines, they need to do at least two things: 1) get the vaccine when it is their turn, and 2) create a vaccine plan for their employees. A good vaccine plan aligns with state or local vaccine policies, is clearly communicated to employees, and includes incentives, such as paid time off for employees to get the shot(s) and recover from side effects if they occur. It should also follow the CDC's guidance on wearing masks and social distancing, even after all employees are vaccinated.

Small business owners who want to do more can encourage local community members to receive the vaccine. There are a number of ways to do this, ranging from helping reduce vaccine hesitancy among friends, family, and peers to spreading awareness or providing logistical support. This is not only good for the health of the community, but it will restore the confidence of people who will be comfortable going back to normal with a fully reopened Main Street.

It has been a hard year, but small businesses across America have banded together and come up with creative ways to stay afloat. With the country being so close to the end of the pandemic, the leadership of small businesses is needed to get us there faster.

Ron Busby Sr. is president and chief executive of the U.S. Black Chambers Inc. Ramiro A. Cavazos is president and chief executive of the United States Hispanic Chamber of Commerce. Chiling Tong is president and chief executive of the National Asian/Pacific Islander American Chamber of Commerce and Entrepreneurship. Rhett Buttle, founder of Public Private Strategies, served as national business adviser to the Biden campaign.

Five Ways the American Jobs Plan Can Help Small Business

Wed, 14 Apr 2021 17:26:00 GMT

The size of the American Jobs Plan, President Biden’s $2.25 trillion dollar infrastructure package, is the subject of debate. Lawmakers on both sides of the aisle are questioning whether the amount is too much or not enough.

What is certain about the plan is that it will help American small businesses that need support in fully recovering from Covid-19.

Even before the pandemic, more than half of small business owners said infrastructure investments were critical to the success and growth of their business. Critically, a majority of small businesses will not see an increase in their taxes.

The vast majority of small businesses are organized for tax purposes as sole proprietors, limited liability companies and S-corporations. Only businesses organized as C-Corporations will be affected by a change in corporate taxes.

Since Covid-19, businesses have been struggling to stay afloat, much less grow. Many had to apply for Paycheck Protection Program (PPP) loans just to stay open.

However, the PPP was intended to help small businesses survive. Now, the American Jobs Plan will help them fully recover. Here are five ways this package will support small business owners and create jobs.

Increasing Federal Contracting Opportunities: Federal contracting can help grow minority- and women-owned small businesses, but not all eligible ones can benefit because of overly burdensome regulations. The new package will streamline the process for certification, bidding, and winning so more businesses can participate in the infrastructure efforts in the American Jobs Plan.
Encouraging Innovation: President Biden’s plan includes a $5 billion investment in federal programs that encourages small firms to participate in federal research and development initiatives that could lead to commercial products and services.
Expanding Access to Capital: Government funding and access to capital have historically been inequitable based on race and gender. The American Jobs Plan begins taking steps to rectify this by creating a new grant program through the U.S. Department of Commerce’s Minority Business Development Agency. This grant program will help minority-owned manufacturers access private capital.
Creating New Financing: To support small manufacturers, President Biden’s plan creates a new equity-based financing program where private capital companies can invest seed funding in their growth.
Increasing Access to Lending and Capital: The American Jobs Plan also bolsters the Small Business Administration's bread-and-butter lending efforts recovery by committing $15 billion in the SBA’s 7(a) loan program and $5 billion in the Small Business Investment Company program. This type of investment will spur a faster recovery for Main Street.

The Covid-19 pandemic tested our economy in ways never before imaginable and small businesses have shown their resilience throughout the entire crisis. President Biden’s plan will give them the resources needed for Main Street to fully reopen and create jobs, which in turn will bolster the U.S. economy.

This piece originally appeared in Forbes on April 14, 2021. You can view it online here .

In Partnership with HHS & White House, Public Private Strategies Announced as Founding Member of COVID-19 Community Corps

Thu, 01 Apr 2021 13:37:00 GMT

FOR IMMEDIATE RELEASE
April 1, 2021
Contact: HHS Press Office
202-690-6343
media@hhs.gov

U.S. Department of Health and Human Services Launches Nationwide Network of Trusted Voices to Encourage Vaccination in Next Phase of COVID-19 Public Education Campaign

COVID-19 Community Corps to Mobilize Doctors, Community Leaders, Businesses and Citizens and Equip Them with Resources and Information to Build Vaccine Confidence and Uptake
HHS Also Launches First TV Ads Encouraging Vaccinations, and Social Media Profile Frames for Americans to Share Support of Vaccines with the Message “We Can Do This”
Today, the U.S. Department of Health and Human Services (HHS) is announcing additional measures to encourage vaccinations and increase vaccine confidence as part of the next phase of its COVID-19 public education campaign. The Administration is launching the COVID-19 Community Corps – a nationwide, grassroots network of local voices people know and trust to encourage Americans to get vaccinated. As part of the launch of the Community Corps, Vice President Kamala Harris and Surgeon General Vivek Murthy will meet with founding members on Thursday, April 1, as she begins championing the next phase of the public education campaign from the White House.
The Community Corps will be comprised of trusted voices in communities across the country, and the Administration will regularly share updated public health information and resources for them to use with their communities to help get friends, family, and followers vaccinated.
As part of this community-driven strategy, HHS is also unveiling new social media profile frames so Americans can display their choice to get vaccinated and encourage their friends and family to do the same, increasing confidence and uptake as vaccines become more available. And, today, the first TV ads, including in Spanish, will start running nationwide to encourage Americans to get vaccinated as soon as they are eligible. Importantly, the ads will emphasize a message – We Can Do This – that is a hopeful and unifying call to action that we each can do our part to end this pandemic by getting vaccinated.
These efforts follow last week’s announcement of nearly $10 billion to increase vaccine access and confidence in hard-hit vulnerable communities, including $3 billion of CDC funding to support outreach efforts in the states through community-based organizations and trusted community leaders. HHS also announced $250 million in minority health grants to increase vaccine uptake in minority communities, and CDC has provided $255 million in awards to community and civic groups for vaccine outreach. HHS’s public education efforts are being co-chaired by Drs. Murthy, Francis Collins, Anthony Fauci, Marcella Nunez-Smith, and Rochelle Walensky, with Vice President Harris championing the next phase of the effort from the White House.
Today’s announcement includes:
Launching the COVID-19 Community Corps: HHS is launching a nationwide, grassroots network of local voices and trusted community leaders to encourage vaccinations, with more than 275 founding member organizations that have the ability to reach millions of Americans. This effort will mobilize health professionals, scientists, community organizations, faith leaders, businesses, rural stakeholders, civil rights organizations, sports leagues and athletes, and Americans from all walks of life to become leaders within their own communities to help get friends, family, and neighbors vaccinated. A full list of founding members can be found at the end of this fact sheet.
The program will provide resources and fact-based public health information through HHS in partnership with CDC. Research shows that, when making the decision to get vaccinated, people want to hear from people they trust, such as medical professionals, their own family and friends, and leaders in their community . The Community Corps was created to provide those trusted messengers with consistent and accurate information about COVID-19 to empower as many Americans as possible to become messengers to share the importance of vaccination in their community. Anyone can become a Community Corps member, and members will receive weekly updates on the latest scientific and medical updates, talking points about the vaccine, social media suggestions, infographics, factsheets with timely, accurate information, and tools to help people get registered for an appointment and vaccinated. To become a member, the public can sign up at www.hhs.gov/covidcommunitycorps .
Launching Social Media Profile Frames to Build Grassroots Momentum for Vaccinations: As part of this community-oriented focus on cultivating a nationwide network of trusted voices, HHS and CDC are launching new social frames on Facebook to empower Americans across the country to share with their friends, family, and followers that they plan to get vaccinated. Giving individuals and pages the opportunity to use their profile picture to share their support for COVID-19 vaccination—and seeing others they trust in a friend group doing the same—will help increase confidence in the vaccine as it becomes more widely available. As part of this effort, Facebook will promote the frames in News Feed and encourage influencers to utilize them.

Airing TV Ads to Encourage Vaccinations Among Key Eligible Groups: HHS is beginning to air both English and Spanish language TV ads across the country to encourage vaccination among key groups currently eligible to receive vaccinations, including Americans age 65 and older. In addition to general market broadcast and cable advertising, HHS has also made multi-million dollar ad buys in Black and Spanish-language media, as well as in outlets that reach AAPI and Tribal populations, to add an additional layer of outreach and messaging to hard-hit communities. The ads begin airing today, will run throughout the month of April, and will also run on digital outlets.
The TV ads are below:
WATCH: “It’s Time”
WATCH: “Power”
WATCH: “Un Rayo de Esperanza”
WATCH: “Protecting Our Lives”

Full List of COVID-19 Community Corps Founding Members:

Public Health & Medical Organizations

Advancing Health Equity

American Association of Nurse Practitioners (AANP)

American Academy of Pediatrics

American Association of Pediatrics

American Academy of Family Physicians

American College of Physicians

American Lung Association

American Medical Association

American Medical Student Association

American Medical Women Association

American Nurses Association

American College of Obstetricians and Gynecologists

American Public Health Association

Chicagoland Vaccine Corps Partnership

COVID Collaborative

Infectious Disease Society Association

Mobile Healthcare Association

National Association of Community Health Centers

National Council of Urban Indian Health

Northwest Portland Area Indian Health Board

Nurses for Biden Harris

Planned Parenthood

Protect Our Care

Vaccinate Your Family

#ThisIsOurShot

Sports & Entertainment

National Association of Broadcasters

NASCAR

Anthony Becht*

Chester Pitts*

Orlando Pace*

PGA Tour

Ana Navaro*

George Lopez*

Rural Leaders

American Farm Bureau

American Farm Bureau Federation

American Indian Higher Education Consortium

American Red Cross

Association of Public and Land-Grant Universities

California Fresh Fruit Association

Center for Rural Strategies

Farm Bureau

Farm Credit Council

National 4-H Council

National Association of State Departments of Agriculture

National Association of Wheat Growers

National Corn Growers Association

National Farmers Union

National Milk Producers Federation

National Rural Education Association

National Rural Health

National Rural Health Association

North American Meat Institute

North American Meat Institute

NTCA-The Rural Broadband Association

Rebuild Rural Coalition

Rural Coalition

The National Grange

United Farm Workers Foundation

Union & Organized Labor Leaders

Actor's Equity

AFL-CIO

AFSCME

Brotherhood of Railroad Signalmen

International Brotherhood of Boilermakers

International Brotherhood of Electrical Workers

International Brotherhood of Teamsters

International Federation of Professional and Technical Engineers

International Longshoreman's Association

International Organizations of Masters, Mates & Pilots

International Union of Bricklayers and Allied Craftworkers

Iron Workers

IUPAT

National Association of Manufacturers

National Education Association

RWDSU

SEIU

Stage Directors and Choreographers Society

Transport Workers Union

UFCW

United Brotherhood of Carpenters

United Farm Workers

United Steel Workers

Latinx Leaders

Ciencia Puerto Rico

Hispanic National Bar Association

NALEO

Poder Latinx

UNIDOS

Voto Latino

Black Leaders

Benedict College

Bennett College

Black Coalition Against COVID

Black Women's Roundtable

Cheyney University (PA)

Delaware State University

Morgan State University

NAACP

National Action Network

National Coalition on Black Civic Participation

National Council of Negro Women

National Urban League

Prairie View A&M University

Stillman College

Texas Southern University

Thurgood Marshall College Fund

Tougaloo College

United Negro College Fund

University of the Virgin Islands

Wiley College

AAPI Leaders

AAJC

AAPCHO

APAICS

APALA

APIAHF

APIAVote

EPIC

Esther Choo

Hudson Yang

IMPACT

Michelle Kwan

NAPABA

NCAPA

NCAPIP

SEARAC

Native/Tribal Leaders

Alaska Federation of Natives

Center for Native American Youth

Illuminatives

Midwest Alliance of Sovereign Tribes

National Council of Urban Indian Health

National Indian Health Board

Native Peoples Action

United South and Eastern Tribes (USET)

UNITY

Veterans

AMVETS

Blinded Veterans of America

Disabled American Veterans

Iraq and Afghanistan Veterans Association

Modern Military Association of America

Student Veterans of America

The Mission Continues

VetsFirst, United Spinal Association

Vietnam Veterans of America

Womens Veterans Interactive

Business Leaders

Asian/Pacific Islander American Chamber (ACE)

Black Economic Alliance

Business Roundtable

Minority Business RoundTable

Public Private Strategies

US Black Chambers

US Chamber

US Hispanic Chambers

US Women's Chambers

Faith Leaders

Alliance of Baptists

AME Church

AME Zion Church

America Indivisible

American Baptist Church

American Muslim Public Health Professionals

Archbishop Vicken Aykazian*

Asian American Christian Collaborative

Association of Catholic Colleges and Universities

Association of Neighbors Concerned for Latino Advancement (ANCLA)

BAPS

Barbara Carter*

Bend the Arc: Jewish Action

Bishop Joseph Walker*

Bishop Lawrence Reddick*

Bishop Leah Daughtry

Bishop Michael Mitchell*

Bishop Salley Dyck*

Bishop Teresa Jefferson-Snorton*

Bishop William Barber II*

Bridging Cultures Institute

Catholic Charities USA

Catholic Health Association

Center for Public Justice

Christian Churches Together

Christian Methodist Episcopal Church

Church of the Brethren, Office of Peacebuilding and Policy

CityGate Network

Community of Christ

Community Resource Network

Cooperative Baptist Fellowship

Council for Christian Colleges and Universities

Disciples of Christ

Ecumenical Catholic Communion

Emgage

Eugene Cho*

Evangelical Lutheran Church in American

Faith and Community Empowerment

Faith in Action

Faiths4Vaccines

Fr. Sr. Rob Nemkovich*

Franciscan Action Network

Fred Davie*

Friends United Meeting

Greek Orthodox Archdiocese of America

Interfaith Alliance

Interfaith Center of New York

Interfaith Youth Core

International Council of Community Churches

Jeannette Salguero*

Jo Anne Lyon*

Joshua DuBois*

Know Your Neighbor

Leadership Conference of Women Religious

Malankara Orthodox Syrian Church

Mark Harrison*

Metropolitan Zachariah Mar Nicholovos*

Multifaith Neighbor Network

NACA Inspired Schools Network

National African American Clergy Network

National Association of Evangelicals

National Council Jewish of Women

National Latino Evangelical coalition

NETWORK

New York Jewish Agenda

Rabbi Jacob Blumenthal*

Religious Action Center of Reform Judaism

Rev. Carlos Malave*

Rev. Dr. Amos Brown*

Rev. Eddy Aleman*

Rev. Jim Winkler*

Rev. Luis Cortes*

Rev. Stephen Green*

Rev. Terri Hord Owens*

Rev. Tyrone Pitts*

Salam Al-Marayati*

Salvation Army

Sojourners

Syriac Orthodox Church

T.Dewitt Smith*

The Episcopal Church

The Episcopal Diocese of Washington

The Moravian Church Northern Province

The Sikh Coalition

United Church of Christ

Washington National Cathedral

Community Leaders

AARP

America Indivisible

Americans United for the Separation of Church of State

Blue Future

BSP Research

Care in Action

Center for American Progress

Center for Popular Democracy

Center for Science in the Public Interest

Center for Wellness and Nutrition

Civic Nation

CLASP/New Deal 4 Youth

Data for Progress

Democracy Partners

Feeding America

GLAAD

Greater Good Initiative

Hunger Free America

Indivisible

Islamic Networks Group & Affiliates

Know Your Neighbor

Meals on Wheels America

Minority Emergency Preparedness Task Force

Movement Labs

National Association of Counties

National Association of County Health Officials (NACCHO)

National Bar Association

National Black Justice Coalition (NBJC)

National Center for Lesbian Rights (NCLR)

National League of Cities (NLC)

National WIC Association

NextGen America

Opportunity Youth

ParentsTogether

People's Action

People's Action Institute

PFLAG

School Nutrition Association

Sierra Club

Stand Up Republic Foundation

Stop the Spread

Students Learn, Students Vote Coalition

The Leadership Conference on Civil and Human Rights

Think of Us

Trans Latin@

Trevor Project

UltraViolet

United We Dream

Uniting Garden Homes Inc

Wholesome Wave

Young Invincibles

* designates an individual that signed on to be a part of COVID-19 Community Corps
###

Five Steps For Finding The Right Mentor For Your Business

Thu, 25 Mar 2021 20:04:00 GMT

MEDIANEWS GROUP VIA GETTY IMAGES

If you are a small business owner, a mentor should be an essential part of your support team. Mentors are especially critical during the first few years of a business, as those are often the most challenging. Mentored businesses are also more likely to survive the crucial start-up phases and be successful.
There is some confusion on what mentoring is, as not every leader is a mentor, and not every mentor has to be in a leadership position, but can have essential experience in their field. In essence, mentors can offer experience and expertise, support and motivation, an expanded network, and increased business acumen.
Choosing the right mentor for your business can be a daunting task, but there are five steps you can take to make the process work for you.
1. Evaluate Your Needs
Set aside time to think through what you and your business needs from a mentor. For example, what type of guidance do you need to be successful in your industry? Also, which type of personality works best with your style? Reflection on these questions and others is the crucial first step on your path to getting a business mentor.
2. Determine the Qualities you Want in a Mentor
After reflecting on what you need in a mentor, think about the qualities that make a good mentor. Generally, all should have a track record of business success in a relevant industry, a willingness to be a mentor, and a genuine concern for your progress.

3. Connect with Business Support Organizations
There are numerous organizations focused on providing support and mentors for businesses, including SCORE , America’s Small Business Development Center , Association of Women’s Business Centers (AWBC) , Veteran Business Outreach Center (VBOC) , and Minority Business Development Agency (MBDA) Business Center . Additionally, you can connect with your industry trade association to see if it has any recommendations on potential mentors.
4. Reach out to Your Community
Your network of friends, family, and colleagues is full of potential mentors and helpful advocates. Be sure to also build real relationships with other businesses in your area.
5. Be a Good Mentee
An essential part of a relationship with a mentor is being the best mentee that you can be. Remember, this is about building a long-term relationship with someone. After you’ve identified a potential mentor, be thoughtful about the way you build a relationship. You should be mindful of your mentor’s time, as well as find ways to bring value to the relationship and show gratitude. Mentorship is one of the best investments you can make in your business. It is also something that you can pay forward one day and help other business owners succeed.

This piece originally appeared in Forbes on March 17, 2021. You can view it online here .

Session #2: ICYMI General Small Business Session with the SBA on New PPP Changes - March 6, 2021

Sat, 06 Mar 2021 23:03:00 GMT

Join us for an exclusive conversation with leaders at the Small Business Administration on new changes to the Paycheck Protection Program and what tools and resources are available to help America's small businesses recover from the COVID-19 pandemic and economic crisis.

During this program you'll hear from the following small business advocates and experts:

Note, this conversation was recorded on March 6 at 4:00 - 5:00 pm ET.

Disclaimer:

Cosponsorship Authorization # 21-0501-14: The SBA’s participation in this cosponsored activity is not an endorsement of the views, opinions, products or services of any cosponsor or other person or entity. All SBA programs and services are extended to the public on a nondiscriminatory basis.

New PPP Rules Change Briefing for Veterans, Self-Employed Business Owners, Independent Contractors, Sole Proprietors

Sat, 06 Mar 2021 22:46:00 GMT

During this program you'll hear from the following small business advocates and experts:

Note, this conversation was recorded on March 6 at 2:00 - 3:00 pm ET.

Disclaimer:

ICYMI General Small Business Session with the SBA on New PPP Changes - March 5, 2021

Sat, 06 Mar 2021 00:43:00 GMT

During this program you'll hear from the following small business advocates and experts:

Note, this conversation was recorded on March 5 at 6:00 - 7:00 pm ET.

Disclaimer:

Webinar Series: PPP Updates for Your Small Business

Fri, 05 Mar 2021 14:31:00 GMT

New Sessions Added!
Webinar Series: PPP Updates for Your Small Business

The U.S. Small Business Administration has some key changes to the Paycheck Protection Program (PPP) which will be available for a limited amount of time to ensure America’s smallest businesses get exclusive access. If you are a small business owner with fewer than 20 employees, or are self-employed; there is new information for you. Please join us for a series of webinars hosted by the U.S. Small Business Administration and the Public Private Strategies Institute to hear about:

What steps you can take now to take advantage of this special opportunity, which closes at 5:00 P.M. EST, Tuesday, March 9th, 2021 .
Additional changes and recent policy announcements made by Biden-Harris Administration
Have your questions answered by SBA Leadership

Updated Schedule

Friday, Mar. 5, 1:00 p.m. ET, Black + African-American Small Business Owners, Click here to register .

Friday, Mar. 5, 3:00 p.m. ET, Hispanic Small Business Owners, Click here to register .

NEW! - Friday, Mar. 5, 6:00 p.m. ET, In Case You Missed It - General Small Business Owners Session, Click here to register.

Saturday Mar. 6, 2:00 p.m. ET, Veterans, Self-Employed Business Owners, Independent Contractors, Sole Proprietors, and Employers with Less than 20 Employees Click here to register.

NEW! - Saturday Mar. 6, 4:00 p.m. ET, In Case You Missed It - General Small Business Owners Session, Click here to register .

Monday, Mar. 8, 3:00 p.m. ET, LGTBQ Business Owners, Youth Entrepreneurs, Restaurant Owners, Click here to register .
Disclaimer:

Cosponsorship Authorization # 21-0501-14: The SBA’s participation in this cosponsored activity is not an endorsement of the views, opinions, products or services of any cosponsor or other person or entity. All SBA programs and services are extended to the public on a nondiscriminatory basis. Reasonable accommodations for persons with disabilities will be made if requested at least 24 hours in advance of this event; please send an email with subject header ACCOMMODATION REQUEST to reasonableaccommodation@sba.gov . For assistance with registration or other technical difficulties, please contact Stephan Jordan at stephan@publicprivatestrategies.com .

New PPP Rules Change Briefing for Asian-American + Pacific Islander, Native American + Tribal Small Business Owners

Thu, 04 Mar 2021 23:34:00 GMT

During this program you'll hear from the following small business advocates and experts:

Note: This conversation was recorded on March 4, 2021 at 3 pm ET.

Disclaimer:

New PPP Rules Change Briefing for Women Small Business Owners

Wed, 03 Mar 2021 22:46:00 GMT

Carissa Smith, Senior Advisor for The White House Office of Public Engagement, The White House
Candace Waterman, President & CEO, Women Impacting Public Policy (WIPP)
Cynthia Jasso-Rotunno, Associate Administrator, Office of Communications and Public Liaison, The Small Business Administration
Natalie Cofield, Associate Administrator, Office of Women's Business Ownership, The Small Business Administration
Patrick Kelley, Associate Administrator, Office of Capital Access, The Small Business Administration
Corinne Hodges, CEO, Association of Women's Business Centers

For specific questions regarding the PPP program, please reach out to your local SBA district office , your local Small Business Development Center , your local Women's Business Center , or your local veterans business outreach center .

Note, this conversation was recorded on March 3 at 12:30 - 1:30 pm ET.
Disclaimer: Cosponsorship Authorization # 21-0501-14: The SBA’s participation in this cosponsored activity is not an endorsement of the views, opinions, products or services of any cosponsor or other person or entity. All SBA programs and services are extended to the public on a nondiscriminatory basis.

A Call To Duty: Small Business Can Lead On Covid-19 Vaccinations And Help Bring The Economy Back

Mon, 01 Mar 2021 21:12:00 GMT

MEDIANEWS GROUP VIA GETTY IMAGES

The rapid development of successful Covid-19 vaccines may be one of the most remarkable accomplishments in modern science. However, the Biden Administration faces what may be an even harder task in ensuring that an overwhelming majority of Americans take the vaccine. Today, it has launched a partnership opportunity with the private sector. America's large corporations will play an important role, but the real untapped resource is America’s small business owners.
Why?
Over 92 million people generate their livelihoods from small businesses as either an owner or an employee, representing more than one quarter of the U.S. population. According to Gallup , small business is the most trusted institution in the United States, and Americans’ confidence in small business is nearly four times higher than larger corporations. Perhaps most importantly, small business owners — and in particular business owners of color — are a trusted voice to their workers and in their communities for people who just aren’t sure yet whether to get the shot.
With this type of reach and influence, it is critical that small businesses are supported and resourced in times of crisis. Logistical challenges in many states, pandemic fatigue, a history of racial injustice in medical care, and skepticism about the vaccine have caused some Americans to be reticent. Building our economy back better will require a rapid and far-reaching vaccination strategy, and Main Street can be a leader in this area.

President Biden’s call to action asks small businesses to adopt a mask policy, establish a vaccine plan for each of their employees, and amplify the importance and safety of the vaccine. If you are a small business owner, you can answer this call to action by being a leader in raising awareness and support for the Covid-19 vaccine. Here are three immediate steps to consider.
1. Educate Yourself and Help Your Employees Understand the Importance and Safety of the Covid-19 Vaccine: After more than a year of the pandemic, there are still confusion and misunderstanding about a virus that the Centers for Disease Control and Prevention (CDC) estimates 83 million Americans have acquired at some point. As a small business owner, you can help counter confusing messages by getting yourself up to speed and educating your employees on the safety and efficacy of the vaccine and why it is important that they receive it. In doing so, do not make blanket statements about the science being definitive. Take the time to explain why the benefits of taking the vaccine abundantly outweigh the risks. If you can, create a space for conversation beyond “water cooler” talk, such as hosting a roundtable with your employees. The CDC has developed a Covid-19 Vaccine Resource Center to help inform these discussions.

2. Create a Covid-19 Vaccine Plan for Your Team: Unlike corporate America, few small business owners have a full-time human resources staff, and most have no help at all. Nevertheless, all businesses, big and small, need a vaccine plan. Whether you decide to encourage, incentivize, and/or mandate vaccinations depending on your industry, you should communicate that plan to your employees both verbally and in writing. If you intend to make vaccination mandatory, seek legal advice as you develop that plan. If you plan to incentivize receiving the vaccine, consider not only paid time off to get the shot, but also to recover from side effects if they occur. Another step you can take is to keep your employees apprised of updates on vaccine eligibility and where to register. The law firm Fisher Phillips has developed an employer resource center with vaccine policy templates that can assist with Covid, as well as during flu season. The CDC has co-developed a Vaccine Finder that can help you locate a vaccine site near you.
3. Become Ambassadors in Your Community: Once you have championed the vaccine in your business, you can become an ambassador in your community. Work with your local public health department and other government agencies to see how you can support efforts to maximize the distribution of the vaccine. In addition, you can encourage your local chamber of commerce or rotary club to host an educational conversation on this topic. The sooner Main Street is able to fully reopen, the sooner our economy will be on the path to recovery. It’s up to the small business owners on Main Streets to help us get to that point faster by showing leadership in a safe and equitable distribution of Covid-19 vaccines.

This piece originally appeared in Forbes on February 26, 2021. You can view it online here .

Breaking down the special enrollment period for PPP loans designed to help small businesses

Thu, 25 Feb 2021 16:04:00 GMT

Rhett Buttle, Founder of Public Private Strategies and Natl. Business Advisor to the Biden for President Campaign, joined Chicago's WGN9 to break down the new PPP special enrollment period for small businesses announced by President Joe Biden.

Originally aired: February 24th, 2021

New changes coming to Paycheck Protection Program for small business

Tue, 23 Feb 2021 14:41:00 GMT

Tammy Halevy, Senior Advisor with Public Private Strategies, talks about the new changes expected to be made to the Paycheck Protection Program and the emphasis on helping small businesses.

Originally aired: February 23rd, 2021

PPS Founder Rhett Buttle Joined the Pandemic Response Accountability Committee to Share Small Business Borrower Perspectives Regarding COVID Relief

Thu, 18 Feb 2021 15:32:00 GMT

The panel discussion covered topics such as:
• The experience of small businesses, particularly minority-owned businesses, with the Paycheck Protection Program and Economic Injury Disaster Loans
• Lack of data collection on program recipients
• Recommendations to improve communication between government agencies administering programs and their participants to better reach diverse audiences;
• Fraud, waste, and abuse in pandemic response programs.

Business And Economic Leaders Say More Relief Needed: The American Rescue Plan Could Help America’s Small Businesses

Tue, 02 Feb 2021 14:50:00 GMT

GETTY IMAGES

President Joe Biden has recently unveiled his American Rescue Plan, a $1.9 trillion stimulus package intended to address the Covid-19 pandemic by providing funding for vaccinations, relief to families hit hardest, and support for struggling communities. While members of Congress are currently debating the provisions and cost of this proposal, many small business owners and business leaders see it as a necessary lifeline to make it through this pandemic.
In fact, the U.S. Chamber of Commerce, who historically doesn't support many Democratic proposals, issued the following statement, “The U.S. Chamber of Commerce welcomes the introduction of President-elect Biden’s American Rescue Plan. Specifically, we applaud the President-elect’s focus on vaccinations and on economic sectors and families that continue to suffer as the pandemic rages on.” Additionally, Moody’s Analytics, in an independent analysis , estimated that the plan would create 7.5 million jobs in 2021, double economic growth, and return the economy to full employment a year faster.
Let’s be clear. The businesses that have been able to stay open do not consider themselves out of the woods just yet. They are still struggling and many are closing. Just last week, Atlantis Pizzeria and Family Restaurant was forced to close after serving customers in the Washington metropolitan area for the past 38 years.
“Covid hit us hard the last ten months. We never felt comfortable returning to indoor dining. Carry out only since March 2020 was not sustaining a restaurant built to hold 200 customers,” the restaurant stated on its Facebook page.
Loss of revenue is not the only thing hitting businesses hard. So is a lack of stability. A recent New York Times article highlighted Patrick Mulvaney, the chef and co-owner of Mulvaney’s Building & Loan, a farm-to-table restaurant in Sacramento. The restaurant received a federal Paycheck Protection Program loan early on and was able to reopen for outdoor dining in June. However, all California restaurants were forced to shut down again after Thanksgiving through an order by Governor Gavin Newsom because of a surge in coronavirus cases.
“That kind of took the wind out of our sails for the first time,” said Mulvaney. “It’s that process of closing and opening and closing and opening that really gets you.”
If implemented effectively, the Biden Administration’s plan could provide that much-needed stability. Among the package's many provisions are a national program to set up community vaccination sites nationwide and efforts to contain Covid, including testing and tracing, high-quality treatments, and paid sick leave. It also provides support to the workers hit hardest by the crisis and their families through programs that include $1,400 per-person checks, housing and nutrition assistance, and extended unemployment insurance.
For small businesses to survive - their workers, customers, and community must also survive. In a press call last week for a newly formed coalition called Invest in America, Shaundell Newsome, a small business owner from Nevada, Chairman of the Board of the Urban Chamber of Las Vegas , and a co-chair of Small Business for America's Future said, “Small business owners create two out of three new jobs in this country. Every dollar you invest in small businesses is an investment in jobs, workers, and the community.”
This type of support is necessary not just to keep businesses open, but to help industries bounce back. For example, the travel industry supports nearly one in 10 American jobs and is arguably the hardest hit by the pandemic. A U.S. Travel Association report noted that nearly $500 billion was lost over the last 10 months in travel spending and 42% of layoffs nationwide between March and November of 2020 “are attributable to declines in direct travel employment.”
"We are encouraged by the measures to provide additional grants and loans to small businesses in the hardest-hit industries, which include travel,” U.S. Travel Association President and CEO Robert Dow said in a January 27 speech praising the stimulus package. “The Paycheck Protection Program is set to expire in March, but the economic hardships of the pandemic will persist, so it is important that struggling businesses continue to receive aid to maintain operations and keep workers on payrolls."
Whether this legislation ultimately passes in its current form with bipartisan support remains uncertain. What is certain is that if Congress does nothing soon, more businesses will suffer.
This piece originally appeared in Forbes on January 31, 2021. You can view it online here .

AARP & Public Private Strategies Launch the Small Business Resource Center for 50+

Tue, 26 Jan 2021 23:45:00 GMT

Smallbizrc.org is a free, online platform for aspiring entrepreneurs and established business owners

WASHINGTON —AARP and Public Private Strategies launched the free Small Business Resource Center for the 50+ to provide important resources to aspiring entrepreneurs and established business owners. Older entrepreneurs can find support, resources and practical guidance as they start, manage and grow their business. “Small businesses are vital to our nation’s economy and many are started by Americans age 50 and up,” said Susan Weinstock, AARP Vice President of Financial Resiliency Programming. “The impact of the pandemic on small businesses cannot be overstated and it is crucial that business owners and aspiring entrepreneurs have practical guidance and information in this moment.” A significant majority of small business are owned by entrepreneurs who started their businesses later in life. More than half (54%) of America's small business owners are over 50 and in 2019 they employed almost half (47.3%) of the U.S. private workforce. “Always, but particularly as we build back from COVID-19, small business owners and entrepreneurs are constantly adapting and evolving based on their market and customer needs,” said Rhett Buttle, founder and principal of Public Private Strategies . “The trusted resources and information on this platform will help them navigate every stage from starting a new business to managing an established one.” The Small Business Resource Center for the 50+ includes:

Guides to starting, managing and growing small businesses
Help on operating small businesses during a crisis and determining vulnerabilities
Assistance in evaluating funding needs and identifying sources of funding for small businesses.
Resources in both Spanish and Chinese language

In addition to the Small Business Resource Center for the 50+, AARP’s Online Career Expo on January 28 will have targeted sessions for small business owners. To register for the expo, visit: www.aarp.org/onlinedcareerexpo . To access the online platform, visit: www.smallbizrc.org . The resource is free and does not require an AARP membership.

Five Essential Elements Of A Marketing Plan For A Small Business

Fri, 22 Jan 2021 14:43:00 GMT

GETTY IMAGES

If you are planning to open your own small business, the first step is to develop a business plan. The next step is to develop a marketing plan, as all business plans should be paired with a strategy for marketing your products or services. Marketing strategies vary in format, but they all have the common goal of attracting and building relationships with customers. The style is up to you, but it should include the following elements.
1. Marketing Goals and Objectives
You will need to develop realistic and measurable marketing goals that cover a full calendar year and are aligned with your business plan. Common goals in a marketing strategy include a targeted increase in products sold and a growth in customers. Your strategy will help you achieve your goals. As you develop it, you should factor in the type of products or services you are selling, how and where you sell them, and the level of consumer awareness surrounding your business.
2. Define Your Target Audience
Fully describe the characteristics of your potential customers, as well as their media viewing habits. For example, some restaurants target gourmets with an average income of over $100,000, while others focus on providing affordable meals to individuals on a fixed income. Take the time to define your audience and customers for your products or services, along with their unique demographic characteristics, such as age range, marital status, gender, race, income level, or education. This will also help you lay out your plan for distinguishing yourself from your competition.
3. Research Marketing Tactics
There are more marketing tactics available today than ever before and trying to determine which one is best for your business can be overwhelming. Take the time to research all marketing vehicles, which range from traditional (billboard, television, radio, newspaper, and magazine) to digital (pay-per-click ads with Google, social media efforts with Facebook and Twitter, etc.). A full understanding of these tactics will make you more comfortable in selecting which ones are best for your business.
4. Plan Your Marketing Tactics
Once you have completed the research, select the tactics and channels you will use to accomplish your goals and reach your target audience. This could be determined by customer habits and should align with your sales strategy. Be sure to also monitor your competition and stay current with new tactics and channels that your target audience is using.
5. Develop Your Timeline and Budget
Establish a timeline and budget for your marketing strategy that reaches your audience throughout the year. It should include all scheduled promotions for the entire year and a complete breakdown of their cost. Examples of items in a marketing timeline include increased advertising during the holiday season and a month-long promotion to boost sales. It is also important to remember that a marketing strategy is not set in stone. As your business grows and evolves, so will your marketing strategy. Be on the lookout for courses, webinars, and articles to help stay up-to-date with current trends.
This piece originally appeared in Forbes on January 12, 2021. You can view it online here .

Rising to the Challenge: Business and its Continued Role in Democracy

Tue, 19 Jan 2021 15:43:00 GMT

On Tuesday, January 19, 2021, Leadership Now Project and Public Private Strategies, joined business, academic, and civic leaders across the country discussed the important role business played in supporting a safe and secure election in 2020, and the prominent role business leaders will need to continue to play in fortifying and renewing our democratic institutions.

Remarks from the Biden Administration

Zach Butterworth

Fireside Chat

José Andrès

Chef and Humanitarian

The Honorable Dean Phillips

US House of Representatives

Panel - Did Business Meet the Moment: Examining the Role Business Played in the Transition of Power

Karen Kerrigan

President & CEO, SBE Council

Mia Mends

Chief Administrative Officer, Sodexo

Jeffrey Sonnenfeld

Senior Associate Dean for Leadership Studies, Yale University

Rhett Buttle

Founder & Principal, Public Private Strategies

Moderator

Panel - Safeguarding Democracy: The Role Business Should Play Going Forward

Morgan H. McKenney

Chief Operating Officer, Global Consumer Banking, Citi

Michael Porter

Strategist and Professor, Harvard Business School

Anoop Prakash

President, REV Ambulance Group

Lisa Blau

Founding Member, Leadership Now Project

Moderator

With Contributions from:

Daniella Ballou-Aares

President & CEO, Leadership Now Project

Katie Vlietstra Wonnenberg

Principal, Public Private Strategies

The Midnight Covid-19 Relief Package: 3 Provisions That Are Important For Small Business

Mon, 04 Jan 2021 14:12:00 GMT

WASHINGTON, DC - DECEMBER 28: The sun rises of the US Capitol. GETTY IMAGES

As 2020 comes to a close, we are beginning to see some light at the end of the tunnel for the Covid-19 pandemic.The Food and Drug Administration has approved two vaccines and this past week and we saw the vaccine being administered on national television. While we know deploying the vaccine throughout the country will take many months, we should all rejoice in the heroic advancements in modern medicine that have netted a Covid vaccine in less than 12 months. While this is certainly hopeful, millions of small businesses are still struggling to keep their doors open and lights on. In this vain, Congress was able to pass a $900 billion Covid-19 relief measure that President Trump finally signed into law on December 27. The bill came after eight months of fractured negotiations that saw House and Senate leaders produce multiple pieces of legislation at vastly different price tags. While certainly not perfect, the bill did include several provisions which will have positive impact for small business owners and their communities. Here are three:
1. Paycheck Protection Program (PPP) Changes
The legislation provides for significant changes to the PPP. First, for those small businesses who have received (or will receive) a PPP loan, the legislation created a simplified forgiveness process for loans less than $150,000. This is good news as the vast majority of small businesses fall into this category. Additionally, the new law provides that some businesses will be eligible for a second PPP loan. To do so, businesses will need to either: 1) have no more than 300 employees, 2) demonstrate a loss of 25% in gross receipts in any quarter of 2020 compared to the same quarter in 2019, and 3) have fully spent the first PPP loan. Also included was language clarifying that the PPP can be used for additional business expenses, including personal protective equipment and adaptive investments to help businesses protect their workers and customers.
The legislation also expanded the PPP to cover 501(c)(6) organizations, which includes many membership organizations that are a part of the small business ecosystem. An additional $15 billion in funding was set aside for entertainment venues, movie theaters, and museums that are experiencing significant revenue loss.
2. More Money in the Pocket of Working Families
Small businesses cannot survive if their customers do not return. For them to come back, Americans need money in their pockets. While many policymakers would argue we needed to do more — giving consumers money to put back into the economy is critical. Similar to the last relief package several months ago, this legislation also provides a round of Economic Impact Payments of $600 for individuals making up to $75,000 per year and $1,200 for couples making up to $150,000 per year, along with $600 for each child dependent. The new legislation also takes steps to keep the bottom from falling out of the economy by supporting individuals who are struggling to pay for basic necessities like food and housing because of the pandemic. The legislation temporarily extends the unemployment programs created by the CARES Act for an additional 10 weeks through March 14, 2021. The legislation also extends and phases out the Pandemic Unemployment Assistance (PUA), a temporary program covering self-employed and gig workers, through April 5, 2021.
3. Expanded Tax Benefit for Employee Retention
The new law extends and expands the CARES Act’s refundable Employee Retention Tax Credit (ERTC) through June 30, 2021. The extension of this tax credit will help keep additional U.S. workers on payroll and more small businesses and nonprofits across the country afloat. Additionally, small businesses receiving a PPP loan will now be able to opt-in for the ERTC program. Previously, businesses couldn’t avail themselves of both the PPP and ERTC. This is a crucial change to ensure businesses have access to as many tools as possible to keep themselves operating.
While this legislation is crucial for small businesses and our country during this holiday period, it will not be enough. Already President-elect Biden has indicated that he will call on Congress to do more.
For now, some help is on the way, but more work will need to be done. In early 2021, policymakers will need to work together to pass additional relief to ensure that our country has the resources it needs to quickly deploy the Covid-19 vaccine, help small business reopen, and provide working families with the resources to move forward and further weather the devastating impacts of the Covid-19 pandemic.
This piece originally appeared in Forbes on December 29, 2020. You can view it online here .

Five Steps For Creating Caregiver-Friendly Workplaces Within Rural Communities

Mon, 14 Dec 2020 17:07:00 GMT

Sunset along a rural road in Pensylvania MEDIANEWS GROUP VIA GETTY IMAGES

Working family caregivers in rural communities can face different challenges than caregivers located in urban and suburban areas. Caregivers who live in rural areas more often care for multiple people and 51% of care recipients in rural areas have additional comorbidities that can complicate caregiving. Rural caregivers may have to travel longer distances to provide care, navigate limited services provided in rural areas, and often lack broad community-wide resources. Businesses need to provide tailored support for caregivers located in rural areas or who care for loved ones in rural communities.
As a small business in a small town or other rural area, there are some things you can do to support your employees when they are caring for a loved one.
1. Talk to your employees about caregiving
Many caregivers don’t consider themselves to be caregivers and some are hesitant to share their experiences outside of work. As an employer, it is necessary for you to know which employees have care responsibilities so you can help provide the right support.
2. Empathize with the caregiver
To better help working caregivers provide care for their loved ones, it is important to understand their situation and empathize with what all the balls they have to juggle. Every caregiving situation is unique and comes at different speeds. For example, if one of your employees is caring for someone with cancer, he or she may have to travel two to three hours each way to the nearest cancer center. If the cancer is rare or unique, then he or she may have to seek care out of state with an oncologist who specializes in that disease. This is just one example of the countless types of challenges your employees may be facing. Take the time to meet or have a cup of coffee with them to fully understand the steps they are taking to care for a loved one.
3. Work with your employees to make a care plan
Once you have a full understanding of the situation, work directly with your employees to develop a plan for how they can meet both their work and caregiving responsibilities. This plan should involve cross-training so other members of your team can back-stop essential duties in the event of short- or long-term absences. It should also involve clear communication about how your sick leave policy can and should be utilized.
4. Adjust their way of working where possible
Perhaps the biggest way you can help your employees is to shift their way of working to meet caregiving responsibilities. Explore remote work options and see if they would be a good fit to work from home on a part- or full-time basis. If remote work is not possible, consider instituting flextime or part-time opportunities. At the very least, you should adjust their schedule or allow leave time to be used for caregiving so employees have the flexibility to fulfill their commitments at home without creating conflict with their responsibilities at work.
5. Work with other members of the community
Your community has a number of support networks through churches and other civic organizations. If you are aware of them, do not hesitate to connect your employees with them. In addition, understand what federal, state, and city-level policies are available to help navigate caregiving responsibilities and costs. This will go a long way in both supporting your employees and making them feel supported.
There are also numerous resources to guide and assist you in this process. So many caregivers just need to be pointed in the right direction so they can better serve their loved ones. Be sure to connect them with trusted sources of information like AARP of the Family Caregiver Alliance.
This piece originally appeared in Forbes on December 14, 2020. You can view it online here .

The numbers are dire. Congress must act now to save small businesses.

Thu, 10 Dec 2020 21:21:00 GMT

On Thursday, December 10, 2021, in a Washington Post op-ed, Ron Busby Sr., president and chief executive of the U.S. Black Chambers Inc. Ramiro A. Cavazos, president and chief executive of the United States Hispanic Chamber of Commerce. Chiling Tong is president and chief executive of the Asian/Pacific Islander American Chamber of Commerce and Entrepreneurship. Rhett Buttle, founder of Public Private Strategies, served as national business adviser to the Biden campaign, shared insights from the survey findings.

Managing Covid-19’s Impact On Small Businesses: A Conversation With Wisconsin State Treasurer Sarah Godlewski

Thu, 03 Dec 2020 15:48:00 GMT

Sarah Godlewski, Wisconsin State Treasurer COURTESY SARAH GODLEWSKI

Covid-19’s impacts are being felt in every community. While federal programs have been created to support businesses and their employees, most notably the Paycheck Protection Program (PPP), the majority of the management is being handled at the state level.
Wisconsin has experienced more than 400,000 Covid-19 cases and its small businesses and economy have been disrupted by the adjustments that have been made because of the pandemic. Despite this upheaval, businesses, government agencies, and consumers have come together to keep the economy afloat.
I recently had the opportunity to speak with Wisconsin State Treasurer Sarah Godlewski, who serves as the state’s chief banker. I am grateful to her for taking the time to speak with me; below is a summary of our conversation.
Rhett Buttle: How has Covid-19 challenged or affirmed how you think about the financial security of small businesses and their employees in your state?
Sarah Godlewski: Before I was elected the State Treasurer of Wisconsin, I founded a small business that invested in and worked with start-up companies. I loved working with founders and entrepreneurs because they are some of the most enterprising, hard working people I know. I’ve seen firsthand how small businesses are the backbone of our economy. They are what make Wisconsin, Wisconsin as small businesses make up 99% of our state’s economy. And yet, small businesses, by definition, often have the least resources. Despite these businesses best efforts to plan for financial uncertainty, Covid-19 is something no one ever imagined. Under these extraordinary circumstances, the best way for us to get through this crisis is by doing it together.
Here in Wisconsin, I’ve seen citizens, government, and businesses come together. Residents bought gift cards from their local stores or ordered take-out from their favorite restaurants. State and local governments launched grant programs to help hard-hit businesses. Small businesses helped the community by providing free meals or personal protective equipment (PPE) to essential workers. Watching this reminded me that when the United States is united, we can get through anything.
It’s been over nine months since Covid-19 disrupted our communities, and many of the small business programs initiated at the onset of the pandemic are coming to a close. It is imperative that we continue to work together; doing what we can to buy local and encourage Congress to take the necessary actions to provide our small businesses with the resources they need to keep their doors open and their employees safe.
Buttle: How can states and organizations collaborate to support small businesses and their employees?
Godlewski: Wisconsin’s state legislature has been the least active full-time legislature in the country since Covid, leaving our state with minimal support to protect the health, safety, and economic well-being of our citizens. State agencies and local organizations are doing what they can to fill an unimaginable void created by the pandemic. While seeming like an insurmountable task, we spent the past seven months building unique partnerships, optimizing our capacity to help our small businesses and their employees.
When the pandemic hit, there was a lot of uncertainty. The Office of the State Treasurer partnered with the Small Business Administration (SBA) and local chambers to host virtual town halls to understand business owners’ concerns, answer their questions, and share information about developing resources. Exchange of information was an important starting point. It helped determine the greatest needs, biggest opportunities, and ways groups can work together. For example, our economic development agency in partnership with the minority chambers provided grant funding for minority and microbusinesses that were hardest hit by the pandemic. Additionally, the Governor’s Farm Aid Program provided over $50 million to smaller operations who were left out of the federal aid package.
Our partnerships continued by supporting the health and safety of our workers. My task force on homeownership immediately switched gears to focus on creating a foreclosure prevention program. The data from the 2009 Great Recession indicated how serious this problem could be for Wisconsin. Back then, Milwaukee property tax foreclosures increased from 70 in 2008 to over 400 in 2010. By partnering with county treasurers and local social service agencies, we were able to create a program that proactively identifies those citizens at risk of missing their property taxes due to underemployment or unemployment from Covid-19. The program provides them the resources and services to not only keep them in their homes but help them stay on their feet. Further, Governor Evers partnered with our local social service agencies to create a rental assistance program that helped thousands of renters impacted by this awful virus. While the uncertainty of the virus continues, it is important that we continue to grow and develop our partnerships across the state. Information sharing, innovation, and collaboration have and will continue to be essential in helping small businesses recover and keeping Wisconsinites safe.
Buttle: Governor Evers recently established a task force to evaluate retirement security in Wisconsin. What is the status of the task force?
Godlewski: Retirement security is vital for the wellbeing of Wisconsinites and the financial health of the state. One alarming statistic is that 88% of Wisconsinites do not feel financially prepared to retire and wished they saved more. This is understandable when the average monthly Social Security benefit is $1,443 a month. With healthcare costs and prescription drug prices on the rise, seniors are unable to live on Social Security alone. The Governor recognizes the current system is not working. After a lifetime of work, Wisconsinites deserve to have peace of mind and not worry about slipping into poverty. As chair of the Governor’s task force, we are working to find achievable, bipartisan solutions that work for everyone.
Our task force started by listening. We traveled the state hosting business roundtables, public listening sessions, and meeting people where they are at to understand the barriers to retirement. Do people have access to retirement tools at work? Are businesses offering retirement to their employees? A major theme from these listening sessions was access. Approximately 55 million Americans and almost 930,000 Wisconsinites do not have access or a way to save at work. Further, 80% of businesses in the Badger State agree retirement benefits would help them stay competitive but it’s either too costly, too complicated, or too time-consuming to make retirement available to their employees.
Then Covid hit, and we discovered another theme, saving. Wisconsinites found themselves out-of-work with no warning, and some were using their retirement savings to pay their bills. Their retirement account was their only form of emergency savings. While the people we spoke with knew they were putting themselves at risk, they had no other option.
The task force is now acting on this information through three committees: (1) Tax, Incentive, and Education; (2) Accessibility and Save; and (3) Universal Savings Strategies. The committees are working to provide a menu of recommendations that will address savings challenges, improve access, and reduce regulation and operational burdens. We look forward to delivering our recommendations to the Governor early next year and increasing retirement security for the people of Wisconsin.
Buttle: What types of programs and policies is the task force thinking about recommending to the governor? Godlewski: The task force is charged with delivering innovative reforms that will expand access, reduce regulatory and operational burdens, and encourage younger Wisconsinites to save earlier in life.
One opportunity the task force is exploring is an early savings program. The goal of this initiative is to harness the benefits of compound interest at an early age. At birth, the state would open a ROTH-like account for every child born in Wisconsin - a 401(k)ids account. This account could be seeded with a modest amount and, through an IRA-type of investment, would grow over the course of that child’s lifetime. For example, if you seed an account at birth with $250 dollars and contribute $50 annually, the account would be worth over $80,000 by age 65 (using the average retirement return of 7%). This retirement nest egg could make a significant difference particularly for low-income families that have little to no retirement savings by age 65.
Another opportunity the task force is considering is a state-facilitated retirement program. This program would provide a way for the 930,000 Wisconsinites who do not have access to employer-sponsored retirement plans to save through their jobs. Studies show Americans are 15 times more likely to save when they can do so out of their regular paycheck at work, and 20 times more likely when that savings is automatic. We know in today’s economy people are spending a shorter amount of time in one job or are part of the gig industry making it hard to save over time. A key feature of the state-facilitated program is portability - meaning the account would stay with the individual regardless of where they work. This public-private solution would be free for employers and would allow employees to save their own money for a secure retirement. Not only is this option beneficial for workers, but it also allows small businesses that are unable to offer retirement to stay competitive with larger corporations.
While these are just two of the opportunities that the task force is considering, I am looking forward to delivering actionable recommendations that will improve the lives of Wisconsinites for years to come.
This piece originally appeared in Forbes on December 1, 2020. You can view it online here .

Five Steps To Take To Care For A Loved One And Run A Business

Fri, 13 Nov 2020 16:11:00 GMT

UNIVERSAL IMAGES GROUP VIA GETTY IMAGES

From gig workers to solo entrepreneurs, self-employed individuals make up the overwhelming majority of businesses in the U.S. economy. To give you a little perspective, small businesses comprise 99.9% of businesses in the United States. Of those small businesses, 79.7% are self-employed. According to the most recent U.S. Census data, self-employed businesses are also growing at an average rate of 3.3%, which is at least six times higher than all other types of businesses.
Sadly, the Covid-19 pandemic has hit the most vulnerable businesses the hardest financially and while self-employed businesses can be nimble, they also have very little protection. Today, 43% of self-employed and micro-business owners say they are experiencing their worst economic downturn ever. Unlike other businesses, most self-employed individuals have difficulty obtaining financing through traditional lenders, with about half using credit cards regularly to manage their business expenses.
As President and CEO of the National Association for the Self-Employed (NASE), Keith Hall oversees the country’s leading resource for the self-employed. Since 1981, the NASE has provided benefits to support entrepreneurs and drive their growth. Keith began his career as an accountant for KPMG and has worked with and on behalf of the NASE since 1991. Even with his leadership duties with the NASE, he continues to help NASE members directly with tax and financial questions on a daily basis.
I recently spoke with Keith about the growth of self-employed businesses, the impact of Covid-19 on them, and how they can remain viable during this time. I truly appreciate him taking the time to speak with me; below is a summary of our conversation.
Rhett Buttle: Can you describe how the number of self-employed individuals in the U.S. has evolved in the past 10 years?
Keith Hall: Everyone would agree that there has been a dramatic increase in the number of self-employed business owners over the last 10 years. The easiest answer ‘why’ is technology. As technology continues to advance, it has become easier to accomplish tasks remotely which has provided so many opportunities to provide goods and services in a more efficient manner. At the same time, bigger businesses have reduced employee costs such as health insurance, retirement plans, and other benefits by outsourcing more and more tasks which also creates more opportunities for creative self-employed business owners. All of that is true, but I still see the entrepreneurial spirit, that drive for controlling their own destiny, and the desire to create something special for themselves and their families, as the number one reason we are seeing such a dramatic growth in the number of self-employed individuals.
Buttle: How are self-employed individuals being impacted by the Covid-19 pandemic?
Hall: The Covid-19 pandemic has obviously had a pervasive impact on all of us. That is certainly true for the self-employed community. Those small business owners with direct contact with their customers on a daily basis, including restaurants, retail shops, and personal service providers such as hairdressers, personal trainers, nail salons, etc., have been hit the worst. It is my belief that one thing that we will remember from this most scary time in our history is that THIS is when so many more small business owners learned how to meet the needs of their community with their own solutions. The pandemic has forced us to find new ways to meet customer needs and has exaggerated the outsourcing efforts of big businesses, both of which create significant opportunities for many more individuals to create their own job.
Buttle: What effective support of self-employed individuals has there been from policymakers and other leaders (e.g., corporations, philanthropy)? What else should they be doing to help?
Hall: I have been extremely encouraged in seeing the bipartisan efforts to help small businesses throughout this crisis. It seems like we are stuck in a time of no middle ground with both sides of the political spectrum blaming the other and each side demonizing the other. But throughout this pandemic the one common thread, the one message shared by all political pundits, is that small business is the backbone of our economy. At best, it can be considered a silver lining, but Covid has dramatically increased the awareness of that fact throughout the country. The Coronavirus Aid, Relief, and Economic Security (CARES) Act and the underlying Paycheck Protection Program (PPP) loans/grants have provided tremendous relief. And for the first time ever, the family support from income generated by the self-employed business owner was viewed on an equal stead with the wages paid by big business to their employees. Grant programs like the one at the NASE have been expanded to help even more small businesses. Expanding those programs through either an extension of the PPP program or a new stimulus package from Congress and local organizations like the NASE continuing to provide financial assistance where possible is critical for our overall economic recovery. Buttle: What are the top things self-employed individuals need to think about and do to remain viable in these uncertain times?
Hall: The first concern for all businesses, including the smallest of self-employed business owners, should be to continue concentrating on staying safe and staying healthy. That is true for their business and for the customers they serve. But at the same time, they must also stay focused on meeting the needs of those same customers and finding new ways to meet those needs safely. My wife and I talk a lot about the concept of “Don’t be stupid…but at the same time don’t be stupid!” It is critical to stay safe and stay smart but at the same time stay open and stay in business. It is my experience that the small business community is the most creative, the most intuitive, the most diverse, and powerful economic force ever imagined. As a whole, that is unimaginable power, but at its core is one small business owner finding a way to meet the needs of one customer in their community. That’s where it starts and ends. So my advice to every small business owner is to concentrate on your customer base and on that next new customer. Find new ways to meet their needs safely. That is the key to emerging from this pandemic stronger than when we went in.
Buttle: What resources can help the self-employed during this time? Hall: The most important thing to keep in mind as a self-employed business owner, particularly for new small business owners, is to remember that you are not alone. There are literally millions of areas of support available as close as your computer mouse, including the NASE’s website and our Covid-19 resource center . Providing access to lending options, assistance with loan or grant applications for programs like the PPP, access to thousands of other grants programs, and access to experts to help with specific questions are all areas that should be maintained. It is very easy as a self-employed business owner to think you are out there all alone, but it just isn’t true. Organizations like the NASE, your local Chamber of Commerce, the Small Business Administration, SCORE, Small Business Development Centers, etc., etc., etc….are all set up for only one purpose, and that is to help small businesses be more successful.
Don’t miss my earlier conversations with Ron Busby , CEO of the U.S. Black Chambers, Inc., Ramiro Cavazos , President and CEO of the U.S. Hispanic Chamber of Commerce, Chiling Tong , President and CEO of the Asian/Pacific Islander American Chamber of Commerce and Entrepreneurship, Jen Earle , National CEO of the National Association of Women Business Owners, Jill Houghton , President and CEO of Disability:IN, and Ali Noorani , President and CEO of the National Immigration Forum.
This piece originally appeared in Forbes on October 29, 2020. You can view it online here .

Small Business Retirement Programs: A Report From California

Fri, 06 Nov 2020 14:35:00 GMT

LOS ANGELES TIMES VIA GETY IMAGES

The Covid-19 pandemic continues to impact small businesses across the country as they struggle to stay afloat financially. For many, the concern for owners and employees is making it to next week, and they are not even thinking about next year, much less planning for their retirement. However, the pandemic has shown the importance of saving for the future, and thankfully more states are creating programs that provide automated retirement savings options for small businesses and their employees.
The CalSavers program was established in law in 2016 and is a state-facilitated program for California workers whose employers do not offer a workplace retirement plan and self-employed individuals. Employers that do not offer retirement plans and have at least five employees will register for CalSavers and can facilitate their employees’ access to the program with minimal paperwork and no fiduciary liability. The program is voluntary for employees and uses an opt-out enrollment process based on insights from behavioral science. A portion of the employee’s paycheck is then automatically deducted into their own Individual Retirement Account (IRA), which is managed by professional financial services firms overseen by the CalSavers Retirement Savings Board, chaired by the State Treasurer. The program is always voluntary for employees, who can opt out at any time.
I recently had the opportunity to speak with Fiona Ma, California State Treasurer, and Katie Selenski, Executive Director of the CalSavers Retirement Savings Board, about the program and the Covid-19 pandemic’s impact on enrollment. I am very appreciative of the time they took to speak with me; below is a summary of our conversation.
Rhett Buttle: How has Covid-19 challenged or affirmed how you think about the financial security of small businesses and their employees in your state?
Katie Selenski: The pandemic has made it even more clear that many small businesses and their employees are operating at the margins. They are the lifeblood of our economy and our everyday cultural lives, but we have more work to do to support them and increase resiliency. Especially for employees who may be working paycheck to paycheck, the lost shifts and layoffs we’ve seen during the pandemic can threaten their livelihoods. This crisis has underscored the importance of having access to short- and long-term savings.
Buttle: How can states and organizations collaborate to support small businesses and their employees?
Fiona Ma: My office has worked hard to bring several small business assistance programs to employers throughout the state. We’ve hosted dozens of webinars, many in partnership with local chambers of commerce and economic development offices, to educate employers about new and existing resources to help them through this time. It’s been a great opportunity for us to partner with local organizations to reach their memberships and audiences. There are so many great programs—like CalSavers—that are unknown to small businesses and entrepreneurs and I’m proud to use my office to amplify their message.
Buttle: How has CalSavers worked to educate businesses about the program and the benefits it can provide? What lessons can other states learn from these efforts?
Selenski: First, we’re sending notifications directly to every eligible employer by both paper mail and email, with increasing frequency as they approach their deadlines. That direct targeted approach is absolutely essential, but we’ve also worked hard to develop a broader outreach strategy so that by the time employers receive those notices from us, hopefully they’ve heard about us through their existing network and understand what we’re about or at least have a sense that their trusted community leaders vouch for us. Local chambers of commerce and industrial associations have been incredible partners in helping us get the word out. We used to do a lot of this work in-person, but now it’s all transitioned to webinar format, which allows us to do more. In addition to presenting at several sessions per week hosted by these community organizations, we host three to four public webinars of our own per week to provide overviews for employers and how-to instruction on getting started. Anyone can go to our website to sign up for one of those.
We’re also investing in digital advertising on almost every social media platform to raise awareness about the program and drive employers to register. While it would be wonderful to have more resources to expand into television and radio, it’s been exciting to see some of our nonprofit partners take it upon themselves to produce advertisements to get the word out on their own. We’re proud that we’re able to do a lot with a little. As for lessons for other states, it’s really important to understand that even with the power of an employer requirement and automatic enrollment for employees, robust employer outreach and marketing is necessary to drive growth and sustainability. Policymakers need to enable those strategies by providing sufficient support through legislative start-up loans, understanding that it will pay off and help achieve the goal of broader retirement security sooner. And, as with any big bold policy proposal, stakeholder engagement is key early and often. You need to invite small business advocates to the table at every step—design, build, and launch—to ensure the program works for them, because they will be your best ambassadors when it’s time to engage employers.
Buttle: The deadline for larger employers (more than 100 employees) to register was September 30. Has Covid-19 impacted the employer eligibility timeline? Selenski: Yes. The original deadline for the largest employers was June 30 and we took action to push the deadline back to September 30 because we knew employers were facing severe challenges. We hope that the extension was helpful as all businesses and the entire economy had to adapt to our new normal over the spring and summer. Going forward into recovery, our team is here to assist employers and we hope they’ll see CalSavers as part of their reopening plan.
This piece originally appeared in Forbes on November 5, 2020. You can view it online here .

A Conversation On The Vitality Of Self-Employed Individuals To The Economy With Keith Hall, President And CEO Of The National Association For The Self-Employed

Thu, 29 Oct 2020 20:18:00 GMT

Keith Hall, President and CEO of the National Association for the Self-Employed 2008 KEVIN BROWN, PHOTOGRAPHER

Strength Through Adversity: Five Enhanced Attributes Caregivers Bring To The Workforce

Fri, 23 Oct 2020 16:08:00 GMT

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An unfortunate misconception about working caregivers is that their work output suffers tremendously while they care for a loved one and that their employers and coworkers have to bend over backwards to cover for them. That statement is the farthest from the truth and misrepresents more than a fifth of the U.S. population.
The number of caregivers in the U.S. continues to grow. AARP’s 2020 report on caregiving in the U.S. found that 21.3%, or 53 million, of Americans are caregivers, which is up from 43.5 million in 2015. If there is a silver lining with this increase, it is that millions of Americans are also acquiring greater strengths and skills.
When business owners who truly care about their employees take steps to support them when they face a caregiving crisis, they also benefit from the stronger attributes acquired through caring for a loved one. These include, but are not limited to:

A greater maturity through navigating tense situations;
Increased empathy from their own experience and their loved ones’;
Stronger research and critical thinking skills to understand the ailments their loved ones are facing in addition to federal, state, and local programs that can support them;
Better people skills through working with their loved ones, doctors, and caregiving team; and
An enhanced ability to multitask through managing caregiving responsibilities, as well as the other responsibilities they had prior to the crisis.

Working caregivers acquire these skills through being pushed to their limits and forced to adjust to manage them. Business owners can support their working caregivers and their growth by simply looking at their challenges with empathy and flexibility to help them meet all of the demands they are facing. This does not require an overhaul of one’s business. It simply involves taking practical steps and here is an online caregiving resources guide to walk you through them, including making a plan on how employees can meet both their work and caregiving responsibilities through cross-training and back-stopping essential duties, exploring remote and flexible work options, and understanding what federal, state, and city-level policies are available to help navigate caregiving responsibilities and costs. Clear communication with employees should also be a core component to all of these efforts. As the old saying goes, “Through adversity comes strength.” If business owners do not support their workers during a caregiving crisis, then their employees will be forced to choose between work and family, and the employer will lose an established member of the team instead of retaining a stronger one. However, if business owners support their employees who are facing a caregiving dilemma, they will come away with a stronger team and higher morale.
This piece originally appeared in Forbes on October 23, 2020. You can view it online here .

Your Business, Your Vote, Your Voice

Thu, 22 Oct 2020 13:25:00 GMT

How Small Business Owners Can Influence Policies & Elections

With the 2020 election around the corner, businesses have an important part to play in making sure that everyone has an opportunity to exercise their right to vote! We wanted to share with you two important pieces on why and how small businesses can encourage participation by their workers and customers in the election process.
Listen in a video by GoDaddy, Public Private Strategies Founder and Principal, Rhett Buttle , shares three simple ways small business owners can amplify their voices.

Also, in a recent Forbes column , Rhett further emphasized the importance of small business owners to encourage those around them, workers and customers, to participate in the election.
"Americans’ ability to vote is facing its greatest challenge in decades. Between the Covid-19 pandemic, voter laws that vary by state, and uncertainty about whether mail-in ballots will be counted, many Americans are willing to stand in long lines just to vote early. It is important that businesses support their employees as they do this on election day and the weeks leading up to it.”
As a business owner, you are a trusted voice within your community and business. It is important to make sure that you and your employees have all the information they need to vote and have their voices heard. Voting is an important part of being an American citizen, regardless of personal political preferences, remember to encourage your employees to vote and educate themselves on the issues on the ballot.

A Conversation On The Importance Of Immigration On Entrepreneurship With Ali Noorani, President And CEO Of The National Immigration Forum

Thu, 15 Oct 2020 15:46:00 GMT

Ali Noorani, President and CEO of the National Immigration Forum BARABARA KINNEY/EMERSON COLLECTIVE

Immigration has been at the forefront of conversation these days. What is often lost in this discussion is how immigrant-owned businesses benefit the U.S. economy. In fact, immigrant-owned businesses employ 8 million workers and generate over a trillion dollars in sales.
Their success can be seen in both Fortune 500 companies and in small businesses. Unfortunately, immigrant small business owners have been hit hard by the Covid-19 pandemic, as a study by the National Bureau of Economic Research found that a third had reported significant losses. This is compounded by the fact that many owners are uncertain about their eligibility for government assistance programs.
As President and CEO of the National Immigration Forum , Ali Noorani leads an advocacy organization that works with faith, law enforcement, and business leaders in promoting the value of immigrants and immigration to the U.S. A second-generation American, Ali grew up in California as the son of parents born in Pakistan and is the author of “ There Goes the Neighborhood: How Communities Overcome Prejudice and Meet the Challenge of American Immigration ,” and host of the “ Only in America ” podcast.
I recently connected with Ali to discuss the impact of Covid-19 on immigrant business owners, ways lawmakers can support them, and the steps they can take to keep their businesses viable during this time. I am grateful to Ali for taking the time to speak with me; below is a summary of our conversation.
Rhett Buttle: Can you describe the impact of immigrant-owned businesses in creating jobs in the U.S.?
Ali Noorani: The impact is, in a word, tremendous. In 2017, more than 3.2 million immigrants ran their own businesses and employed almost 8 million American workers, generating $1.3 trillion in total sales. By this measure alone, it is abundantly clear that immigrants and immigration are of great benefit to the nation.
As a percentage, immigrants are more likely to start businesses than U.S. citizens are. Yes, immigrants represent more than 40% of the founders of Fortune 500 businesses, but they also are heavily represented in Main Street businesses. I think most of us have firsthand experience with that — these are businesses such as restaurants, grocery stores, gas stations, and dry cleaners. Immigrant-owned businesses are fuel for the U.S. economy.
Buttle: How are immigrant-owned businesses being impacted by the Covid-19 pandemic?
Noorani: Covid-19’s impacts have been significant. More than a third of immigrant business owners have reported “substantial losses in business activity,” according to a study by the National Bureau of Economic Research . Only African American business owners reported such losses at a higher rate (41%).
Immigrant-owned businesses are heavily represented in some of the sectors Covid-19 has impacted most, such as transportation, restaurants, and hospitality. Since many businesses are located in communities disproportionately impacted by Covid-19, those that have been able to remain open may have seen a drastic decline in demand for their services or products.
Buttle: What effective support of immigrant-owned businesses has there been from policymakers and other leaders (e.g., corporations, philanthropy)? What else should they be doing to help?
Noorani: There is no federal program created in response to Covid-19 that is just for immigrant-owned businesses. Many immigrant-owned businesses may be eligible for general Covid-19 economic relief programs for businesses, such as the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL). However, eligibility does not ensure equal access or guarantee that funding will be made available through these federal programs.
Unfortunately, there is significant ambiguity about immigrant businesses eligibility’ and how the government weights eligibility, both of which have limited the number of immigrant businesses getting assistance. Furthermore, in the first wave of PPP loans, immigrant businesses that bank with smaller community banks were at a disadvantage in being able obtain PPP loans, compared with larger businesses.
A survey of Latino small business owners (both immigrant and nonimmigrant) taken in June found that 71% of respondents did not apply for government assistance. Of those respondents, nearly 20% believed they might qualify but needed assistance with the forms. Language barriers and technological illiteracy are among the factors that might make the online applications for PPP and other business loans or grants difficult for many immigrant-owned businesses to access.
One barrier unique to immigrants is that they may be reluctant to access available resources out of fear that doing so may affect their long-term immigration and naturalization prospects. The litany of changes in immigration policy by the Trump administration have made a system that many feel is more complicated than our tax code, even more convoluted.
Government officials should clearly articulate whether and in what circumstances immigrant businesses are eligible for relief programs — federal, state, or local. Addressing language and digital barriers would be helpful as well. More concretely, simplifying the PPP forgiveness process and making forgiveness automatic for loans up to a certain amount also would be highly beneficial. Private companies, foundations, and other philanthropic organizations are also starting to assist in Covid-19 relief to businesses. However, their contributions are difficult to fully capture as they represent such a diverse sector of support and often target specific geographic locations. Given the overall estimated reduction in the number of business owners by some 3.3 million, the impact of such assistance most likely will be limited to businesses, including immigrant businesses, that have the contacts or ability to know what assistance is available.
But there are some possibilities. The Boston Foundation has made nearly $1 million available to greater Boston nonprofits that provide critical support to communities, including nonprofits that work with immigrants. Google has committed $175 million to Black-owned businesses. Magic Johnson Enterprises is aiming at minority- and female-owned businesses with a $100 million commitment. PayPal and the Association for Enterprise Opportunity are targeting Black-owned businesses with a $10 million fund.
Buttle: What are the top things immigrant small business owners need to think about and do to keep their companies viable in these uncertain times?
Noorani: For starters, small business owners need to know what federal, state, and local public and private resources are available to assist them in these unprecedented times. They need to better understand not only what resources are available, but also which ones are not applicable, and how to secure the available resources to maintain their businesses.
Immigrant business owners need to stay up-to-date on the latest health precautions they need to take for their workers and customers and make sure their employees have the necessary personal protective equipment and have a safe environment in which to work. These precautions can help protect the health of their workers and customers and protect against legal liabilities.
But the response and recovery to Covid-19 is not on the immigrant business owner alone. Local Chambers of Commerce, Rotary Clubs, banks, and other civic institutions should redouble their own efforts to engage immigrant business owners. We all have stories of business districts revitalized by immigrant entrepreneurs. Therefore, it is going to take all of us to support these business owners and ensure Main Streets across America continue to thrive.
Buttle: What resources can help business owners during this time?
Noorani: In terms of existing resources, public resources are available at the federal, state, and local levels, and some private resources are available as well. Immigrant business owners should look for information from organizations and agencies focused on issues relevant to small businesses. For example, the Small Business Administration and other business associations have helpful information on their websites about resources available to aid with economic recovery from Covid-19.
In light of the ongoing nature of the pandemic, immigrant business owners would also do well to consider which components of their business model can be conducted virtually and invest in the technology to make that possible.
Additional resources that would benefit immigrant business owners include help desks with native-language speakers available, and technical assistance to complete the paperwork necessary to secure funding opportunities.
Don’t miss my earlier conversations with Ron Busby , CEO of the U.S. Black Chambers, Inc., Ramiro Cavazos , President and CEO of the U.S. Hispanic Chamber of Commerce, Chiling Tong , President and CEO of the Asian/Pacific Islander American Chamber of Commerce and Entrepreneurship, Jen Earle , National CEO of the National Association of Women Business Owners, and Jill Houghton , President and CEO of Disability:IN.
This piece originally appeared in Forbes on October 15, 2020. You can view it online here .

Five Common Ways To Fund A Small Business Beyond Personal Savings

Wed, 30 Sep 2020 19:23:00 GMT

AFP VIA GETTY IMAGES

One of the most cliched statements in starting a small business is that “it takes money to make money”... but it is often true. Many businesses need an infusion of cash to buy essential components of their operations. For a pizzeria, that could be an industrial oven, and for a yard care business, that could be a commercial lawn mower.
A common funding practice many new business owners take is to use personal savings and start small by reinvesting profits into the business. This approach, known as bootstrapping, seems rooted in common sense, but can be restrictive to your business’ growth and personal finances. If your business needs a large infusion of capital, you don’t necessarily have to go it alone and shouldn’t if it jeopardizes your financial security.
There are a number of funding sources available to new and established businesses beyond your personal savings. Here are the five most common.
1. Banks and Credit Unions As with your house and car, you can also seek funding for your business through loans from banks and credit unions. The positive aspect of going through banks for funding is that it gives you the ability to access large amounts of funds and build your business credit. A challenge is that the process can be lengthy and difficult as most lenders will want to see a detailed business plan and may expect a personal guarantee or collateral.
2. Small Business Administration-Guaranteed Loans Another challenge with banks is that they are often wary of lending to new businesses. Fortunately, the Small Business Administration (SBA) works with lenders to guarantee loans for aspiring entrepreneurs to increase access to capital by reducing the risk involved for the lender. They also have lower interest rates, but the approval time can be lengthy.
3. Mission-driven Lenders If you are unable to obtain a traditional bank or SBA-guaranteed loan, another option is a mission-driven lender. These types of lenders include community development financial institutions (CDFIs) and work with entrepreneurs by providing hands-on guidance from the initial application through the life of the loan. While the loan sizes tend to be smaller than those from banks, many entrepreneurs find the mentorship provided by mission-driven lenders to be invaluable.
4. Online Lenders Another option that has increased significantly in recent years is online lending. They come in a couple of different forms. One is private companies, such as Square and PayPal, that lend as either part of their larger offering or as businesses wholly designed for online lending. In addition, most financial institutions, including traditional banks, SBA-backed lenders, and CDFIs, offer online lending options. In either case, the application process and approval times are often faster and more convenient. However, many non-bank online lenders charge higher interest rates or high penalties and fees so be sure to educate yourself on the repayment terms before taking on any loans.
5. Crowdfunding Another funding source you may have seen filmmakers use to get their projects greenlit is crowdfunding, and it can potentially work for your business too. Crowdfunding involves asking a large number of people to fund your business, typically through small donations, and they receive a small gift like branded merchandise rather than financial return. Most crowdfunding platforms are low risk because they don’t require business owners to repay the money to the donors. The one downside is that a crowdfunding campaign is also time-intensive to put together so it is important to make sure it is a good fit for your business.
Whether you use personal savings or a crowdfunding campaign, there are many funding options for your business. The most important factor in choosing one is determining which is the best for your financial security, business’ growth, and mental health.
This piece originally appeared in Forbes on September 30, 2020. You can view it online here .

A Conversation With Jill Houghton, President And CEO Of Disability:IN

Thu, 24 Sep 2020 14:03:00 GMT

Jill Houghton, President and CEO of Disability:IN Courtesy: DISABILITY:IN

People with disabilities comprise more of the workforce than many realize. Today, an average of 5.5% of U.S. employees self-identify as having a disability compared to 3.7% just a year ago. This data helps companies build a culture of inclusion where people of all identities can belong. In addition, there is a business incentive. The recent Accenture report “Getting to Equal: The Disability Inclusion Advantage” found that companies that offered inclusive environments for workers with disabilities had, on average, 28% greater revenue and 30% higher profit margins than companies that did not.

The Americans with Disabilities Act advanced disability inclusion in the workforce, but corporate America must and should do more. Considering the unprecedented time of Covid-19 and its effect on the economy, early data reveals one in five workers with disabilities have lost their employment, compared with one in seven for their peers without disabilities. In all, nearly one million jobs have been lost in the disabled community.

As President and CEO of Disability:IN, formerly the US Business Leadership Network, Jill Houghton oversees the leading nonprofit empowering businesses to achieve disability inclusion and equality worldwide. Jill leverages her more than 25 years of leadership experience at the federal, state, and local levels to advocate for people with disabilities. She also happens to have a learning disability herself.

I recently sat down with Jill to discuss the impact of Covid-19 on employees and business owners with disabilities, ways that lawmakers can support them, and resources available at this time. I appreciate Jill taking the time to speak with me; below is a summary of our conversation.

Rhett Buttle : How are people with disabilities—whether employees or owners of small businesses—being impacted by the Covid-19 pandemic?

Jill Houghton : People with existing disabilities face a myriad of challenges during this difficult time, as well as those who are facing new challenges with mental health, accessibility, and mobility.

The pandemic has disrupted our society, economy and the “working world.” Prior to the pandemic, people with disabilities faced bias, inaccessibility, and other challenges, and now the pandemic only further exacerbates these concerns. People with disabilities are among the most vulnerable, whether they are elderly, veterans, have mobility challenges, or have underlying health conditions.

However, it does not necessarily take a pandemic to disrupt the daily life of a person with a disability. People with disabilities constantly face disruption and obstacles as they navigate a world that is not always accessible and designed to meet their needs. Nonetheless, people with disabilities develop the creative skills and persistent strategies - skills that translate well to becoming successful and valued business partners and employees.

Buttle : What's your policy wishlist when it comes to supporting those in the disability community who want to start or grow their small businesses? Is different support needed during this time?

Houghton : Although the Covid-19 pandemic has presented extreme challenges, it has also presented new opportunities to re-examine, revamp, and re-start in a more inclusive, sustainable way.

At the top of our wish list, is for corporations and organizations to align their support to the disability community with their overall organizational goals and objectives. For example, if your customers include people with disabilities, then optimizing a supplier diversity program to include certified disability-owned businesses would further lend support and strengthen business strategies. With an integrated approach, inclusion efforts are more likely to be sustainable and authentic.

Next, understand that disability has many dimensions. Disability can be a permanent or temporary part of anyone’s life. Disability comes in many shapes and forms and knows no race, gender, sexual orientation, or ethnicity. The CDC estimates that one in four Americans have a disability. As you look to advance inclusion of disability-owned businesses, engage your existing stakeholders who are likely to have a disability. People with disabilities are experts in their own inclusion and actively involving them in those business decisions will ensure positive outcomes.

Third, officially recognize certified disability-owned businesses in your supplier diversity program. A disability-owned business enterprise (DOBE®) is a for-profit business that is at least 51% owned, managed, and controlled by a person with a disability. The Billion Dollar Roundtable and hundreds of corporations already recognize the three DOBE certifications (listed below).

It is important for the disability community to be recognized and included alongside other minority communities at organizations like the Small Business Administration (SBA) and major corporations. Often, disability-owned businesses have been overlooked or excluded from public and private sector procurement opportunities.

Disability:IN certifies three different disability-owned business enterprises:

Disability-Owned Business Enterprise (DOBE®);

Veteran Disability-Owned Business Enterprise (V-DOBE™); and

Service-Disabled Veteran Disability-Owned Business Enterprise (SDV-DOBE™) .

By recognizing these certifications in your supplier diversity program, you are expanding your reach to diverse talent and businesses.

Buttle : How can other leaders (e.g., philanthropic, corporate) or even consumers help level the playing field for small business owners with disabilities?

Houghton : Anyone can help level the playing field for disability-owned businesses by first recognizing that disability is part of the human condition and is a natural part of anyone’s identity. The stigma attached to disability is incorrect and further discriminates against potential talent and opportunity for disability-owned businesses.

By including disability alongside other diversity efforts (such as woman-owned businesses and minority-owned), then it eases a domino effect of further action.

Following through with policies, practices, and processes can level the procurement playing field for all suppliers up and down the supply chain. Recognizing the three different certifications, which includes veterans, can support a more level playing field for all small businesses.

Buttle : What resources can help business owners during this time?

Houghton : Besides financial support and relief provided on the federal, state, and local levels, both large corporations and small businesses are encouraged to join the business network at Disability:IN.

Through Disability:IN, corporations can connect with DOBEs through a supplier hub, meet and exceed commitment goals, lead by example and gain a competitive edge, and ultimately make a social and economic impact by utilizing DOBEs.

Business owners can gain a nationally recognized certification, exclusive information and resources, networking and business matchmaking, policy and advocacy support, and access to private sector corporations.

We have also launched a global campaign called “ Are You IN? ” calling on everyone to play their role in building an inclusive global economy. We invite you to join IN, to receive resources on disability inclusion, including certification.

For more information and to join the Disability:IN network, visit www.DisabilityIN.org/SupplierDiversity .

Don’t miss my earlier conversations with Ron Busby , CEO of the U.S. Black Chambers, Inc., Ramiro Cavazos , President And CEO of the U.S. Hispanic Chamber Of Commerce, Chiling Tong , President and CEO of the Asian/Pacific Islander American Chamber Of Commerce And Entrepreneurship, and Jen Earle , National CEO Of the National Association Of Women Business Owners.

This piece originally appeared in Forbes on September 23, 2020. You can view it online here .

Bipartisan Legislation Could Help More Businesses Survive COVID-19

Thu, 17 Sep 2020 16:51:00 GMT

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The Paycheck Protection Program (PPP) has helped many businesses weather the COVID-19 pandemic, but many have been lost along the way. A National Bureau of Economic Research survey found that 22% of small businesses have closed because of coronavirus and women- and minority-owned businesses have been hit even harder. Many owners whose businesses are still open say they are worried about their survival if they do not receive financial support to make it through the winter months, but a bipartisan bill in the Senate could address that dilemma.

Last week, I hosted a webinar with Senator Michael Bennet [D-CO] and Starbucks Founder and Chairman Emeritus Howard Schultz on S. 3814, the Reviving the Economy Sustainably Towards A Recovery in 2020 (RESTART) Act . The legislation, sponsored by Bennet and Senator Todd Young [R-IN], extends PPP, creates new loan programs, and has 55 cosponsors in the Senate. Schultz has also led an effort that has resulted in 8,700 business owners signing a letter in support of the bill.

“In 1987, Starbucks was a small business. I knew what it meant not to be able to make payroll. I knew what it meant to try and just do everything we possibly could, fighting passionately as young entrepreneurs to save our business,” Schultz said on the webinar. “And we didn’t have the challenge of COVID. We were just trying to make it through.”

Sen. Bennet also has a background in business. In between his stints in public service, he worked for an investment company in Denver, where he helped with the consolidation of three movie theater chains into the Regal Entertainment Group, the second-largest movie theater company in the U.S. His joint introduction of the RESTART Act with Sen. Young is based on that experience and the firsthand accounts of business owners in his state.

“I just spent the last several weeks during the August recess visiting with these business owners across Colorado,” said Bennet. “Several of these meetings ended in tears because they don’t know how they are going to pay their workers or stay in business when the winter months hit.”

The RESTART Act is designed to protect these businesses through a number of avenues. The bill extends PPP loans for 16 weeks to use the funds if the recipient has less than 500 full-time employees and has suffered at least a 25% decline in revenue. The recipient can use the loan to cover payroll costs, rent, utilities, and personal protective equipment.

“If you’re a sit-down restaurant or a gym, you’ve potentially been completely closed or operating at a limited capacity for months and you’re not going to be at full capacity for a while,” said Bennet. “The RESTART Act would give you the support to sustain your business through the end of the year and into early next year. No interest would be due in the first year and no principal would be due in the first two years, giving you the runway to get back up to full strength.”

As Sen. Bennet noted, the legislation also establishes a loan program where the Small Business Administration (SBA) guarantees 100% of loan amounts made to specific small businesses with less than 5,000 full-time employees with terms that include maximum duration of no more than seven years, a loan amount that cannot exceed 45% of 2019 gross receipts, and no principal payment requirements for the first two years of the loan. If the loan is equal to or more than the amount of the business's total loss for the taxable year of 2020, then it will be forgiven. In addition, lenders that have already been approved to make PPP loans will be able to administer loans established by this bill.

“In order to try and describe to members [of Congress] what we are dealing with, I have used the expression that small businesses in America need an economic bridge to the vaccine,” said Schultz. “Small businesses need financial support to transform and sustain themselves, so they can navigate this unprecedented moment.”

If the bill is not passed on a stand-alone basis, it could still be included in a larger COVID-19 relief package. That approach and/or additional legislative efforts for small businesses with these types of elements would achieve Sens. Bennet’s and Young’s, and Schultz’s goal.

“My objective is not to pass RESTART. My objective is to help save America’s small businesses,” said Bennet. “I think RESTART is the best bipartisan idea we have, but we’re always open to improve it.”

Whether the RESTART Act or another legislation package is the solution, one thing is certain: many small business owners are still struggling because of COVID-19 and will need help getting to the other side of this pandemic.

This piece originally appeared in Forbes on September 17, 2020. You can view it online here .

Small Business Roundtable Hosted a conversation with Howard Schultz & US Senator Michael Bennet on the RESTART ACT

Fri, 11 Sep 2020 14:19:00 GMT

Howard Schultz

Michael Bennet

Six Essential Components Of A Sound Business Plan

Thu, 10 Sep 2020 14:34:00 GMT

If you are thinking about opening a business, planning is key to getting started on the right foot. A thorough and well-written business plan makes all the difference in organizing and marketing your business, seeking funding, and measuring your success.

That being said, developing a business plan can seem daunting at first, even if you have an MBA or background in business. The fact that there are so many templates for business plans can also exacerbate that overwhelming feeling. Fortunately, you can choose the format that is tailored best for you and your business. It just needs to have the following components.

1. Executive Summary

Every business should be able to be summarized in an elevator pitch so think of this as a high-level introduction to your business and your reasons for starting it. Your executive summary should include your mission statement of your business’s aims and values, the product or service you are selling, and your business’s name and location.

2. Goals

As we should individually do so in life, you should set short- and long-term goals for your business. A way to distinguish between the two is to set short-term goals for the next four to six months and long-term ones for the next one to three years.

3. Audience

Defining the target audience for your products or services is crucial to your success. Taking the time to determine if you are targeting the general market or a particular demographic based on age range, gender, or race, and whether it is local, regional or national will help guide the next two components of your business plan.

4. Market

Now that you have determined your business and its audience, you need a full understanding of the sphere where it is operating. Look at ways your particular business can improve upon existing models in your market and fill market gaps. In addition, you should fully understand your competitors and how your product or service is different from what they offer.

5. Promotion

With these previous areas defined, it is now time to determine how you will market and promote your product or service to your target audience. In developing your marketing and promotion strategy, determine the tactics best for reaching your audience. Social media can advertise your business with little to no cost, but newsletters, pay-per-click ads, email marketing, or search engine optimization are also cost-effective options.

6. Budget and Expenses

The final step of your plan should include a budget with operational expenses, monthly and daily expenses, marketing, and any debt related to the business. It should also include future financial projections, along with current financial performance.

These components will lead to a plan to help launch your business and bring it to life. Once you complete your business plan, I recommend having it carefully reviewed by a business partner, advisor, or accountant before moving forward with it.

This piece originally appeared in Forbes on September 9, 2020. You can view it online here .

There are more than 11 million women-owned businesses in the U.S., making them the fastest growing segment of our economy. According to an American Express study, the number of women-owned businesses

Tue, 01 Sep 2020 19:42:00 GMT

NAWBO

There are more than 11 million women-owned businesses in the U.S., making them the fastest growing segment of our economy. According to an American Express study , the number of women-owned businesses increased by 114% from 1997-2007, compared to 44% for all businesses. They also employ 9 million people and generate $1.7 trillion in sales.

Unfortunately, women-owned businesses have been severely impacted by the COVID-19 pandemic, especially the 5.4 million that are owned by women of color. A recent National Association of Women Business Owners (NAWBO) survey reported that 20% of its members who responded still need access to capital to survive the pandemic, another almost 20% said they need additional resources to expand online, and 25% said they simply needed time to spend on their business.

As National CEO of NAWBO , Jen Earle leads an organization that has advocated for female business owners for the past 45 years. Her efforts to give back to others started in college when she worked in a shelter for abused and runaway teenagers. Today, she focuses on supporting women business owners and furthering female entrepreneurship.

I recently sat down with Jen to discuss the impact of COVID-19 on women-owned businesses, how lawmakers can support them, and the steps female business owners should be taking to remain open and viable. I’m grateful to Jen for taking the time to offer her insights and perspective; below is a summary of our conversation.

Rhett Buttle: How are working women, and especially women small business owners, being impacted by the COVID-19 pandemic?

Jen Earle: Entrepreneurs are agile, lifetime learners, and this is one of their biggest lessons. According to our recent NAWBO survey, women business owners are maintaining a balance as the pandemic spreads into its six month. While 62% are not concerned about their business failing if states must shutter again, 38% are concerned with the vast majority of those believing they only have 3-9 months to stay afloat.

Regardless of the circumstances, many of these women are struggling, but they continue to push forward, looking past these setbacks toward long-term goals. Our women business owners are innovative, changing their business plans and creating other revenue streams to remain open. Others are finding ways to keep their businesses viable by cutting their salaries in half.

With our working moms, we hear their struggles now more than ever, and with the start of virtual schooling, it will only get worse. Many of our NAWBO moms describe themselves as a "Business owner, mom, and teacher with no break in sight." Despite the situation, these women keep going even when they feel they cannot or are too tired, beat up, and beat down. They are finding avenues to manage the stress and maintain mental wellbeing – having grace with themselves and their teams – to avoid burnout.

Buttle: What effective support of women-owned businesses has there been from policymakers and other leaders (e.g., corporations, philanthropy)? What else should they be doing to help?

Earle: The federal government relief programs, the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) Program, have supported numerous women business owners during the pandemic. About half of our members received a PPP loan, and about 40% applied for EIDL loans. However, business owners could use more support.

We believe Congress should prioritize the inclusion of the Small Business Expense Protection Act of 2020 (S.3612). As our business owners climb the uphill battle to stay open, this proposal would allow businesses to deduct expenses paid with a forgiven PPP loan from their taxes. Also, Congress should recognize the importance of the Ensuring Increased Disaster Loans for Small Businesses of Act (S. 4227). By lifting the caps and infusing more money in the EIDL Program and the EIDL Advance Program, our business owners will remain open by using these long-term, low-interest loans that do not require a relationship with a financial institution.

These common-sense, bipartisan solutions would significantly improve the economic landscape for women business owners as they continue to face these hardships. We also need to look at options where women can access capital without going into debt. Women are risk averse, and there needs to be more grant options to keep their doors open.

Buttle: What are the top things female small business owners need to think about and do to keep their companies viable in these uncertain times?

Earle: For women business owners to be resilient, it is going to take what I like to call the 4 C's: capital, community, confidence, and Capitols.

Capital needs to reach our women's business owners. We must work to help them overcome barriers to access to capital, and hopefully, Congress will set-aside money specifically for these women-owned businesses.

We need to continue our efforts to build a community. Business owners need an avenue that allows them to connect with other individuals who have been through similar challenges or are presently undertaking them as well. Our women business owners have been meeting virtually one to two times a week to discuss everything from how to handle employees that come down with COVID-19 to talking about the struggle to shift to a different virtual business model, and sometimes just to talk about the chaos at home. NAWBO provides this community, and there are so many communities out there for women and business. Go find your people!

Women business owners need confidence and support to trod the sometimes lonely and challenging path of entrepreneurship. Women business owners often feel alone regardless of this pandemic, and we need to ensure that no one feels isolated. We must ensure women have the confidence to innovate and try new things to revitalize their businesses.

Finally, Capitols. Lawmakers need to understand the contribution of women business owners. Before the pandemic, we would boast that women business owners represent the fastest growing economic sector in the country, employing 9.4 million and generating $1.6 trillion in revenue. As I said before, according to our recent survey, if states must shutter again, 38% of our respondents said they are concerned about the viability of their business. The vast majority of those business owners believe they will only have 3-9 months to stay afloat. Everyone needs to think and prepare for what may happen. We need to ensure that these women business owners vocalize what they need to lawmakers to remain open.

Buttle: What resources can help business owners during this time?

Earle: I would look at ways to expand your network virtually. Our annual Women's Business Conference is going all virtual this year. From September 22-23, we'll be doing breakout sessions and hearing from speakers and panelists. Some sessions include:

Shifting Your Marketing Strategy Post-COVID-19,
Leveraging Technology to Ensure Business Agility and Digitally Transforming Your Business, and
Assessing the Financial Impact of Strategic Decisions in Uncertain Times.

By participating in virtual events, it builds your community but also diversifies your network to expand during tough times.

Don’t miss my earlier conversations with Ron Busby , CEO of the U.S. Black Chambers, Inc., Ramiro Cavazos , President And CEO of the U.S. Hispanic Chamber Of Commerce, and Chiling Tong , President And CEO of the Asian/Pacific Islander American Chamber Of Commerce And Entrepreneurship.

Other Resources:

This piece originally appeared in Forbes on August 31, 2020. You can view it online here .

We Need The U.S. Postal Service To Deliver For Small Businesses—And Our Economy

Tue, 25 Aug 2020 13:24:00 GMT

AFP via Getty Images

On Saturday, the House of Representatives voted to approve legislation to block recent operational changes at the U.S. Postal Service and grant $25 billion in emergency funding. This morning, as Postmaster General Louis DeJoy follows up his Friday Senate testimony with another round of questions from the House Oversight and Reform Committee, America’s small businesses should be top of mind. Under DeJoy’s short tenure, the U.S. Postal Service has implemented several changes—including new restrictions on overtime hours, fewer trucks on the road, and the removal of mail sorting machines and collection boxes across the country—that have resulted in a “crippling backlog” of mail. And small businesses are paying the price.

A strong postal service is crucial to our economic recovery post-Covid-19. Without it, small businesses—the backbone of our economy—cannot innovate and adapt to this new reality. These businesses are a vital customer for the USPS: According to the agency’s own data, in 2013 small businesses generated $9 billion of revenue for the USPS—about 14% of its annual operating revenue. Small businesses are part of what enables the USPS to generate an average of $236 millio n in revenue each day, all while only one percent of its annual budget is subsidized via federal appropriations.

Small businesses, in turn, rely on the U.S. Postal Service. A 2019 report found that 70% of microbusinesses (fewer than 10 employees) had utilized the USPS within the previous six months. During the pandemic, the USPS has become even more crucial. In a May 2020 Harris poll , Americans ranked the USPS as the most “essential” company amid the COVID-19 pandemic. With most of the nation stuck at home, between April and June of this year, overall package volume increased by about 50% from last year. Savvy small business owners have pivoted to digital storefronts as brick-and-mortar shopping continues to be complicated, if not impossible. And these newly online merchants depend on the speed, reliability and cost effectiveness of the USPS.

Now, these businesses—already battling to stay afloat—can’t even rely on the mail. Recently, the National Small Business Association polled its members and found that 60% have experienced serious shipping delays through the USPS. These delays deliver yet another blow to small businesses that are doing everything they can think of to survive this crisis.

While Fedex, UPS and other private carriers offer an alternative, they’re typically not as cost effective for small businesses operating on thin margins. This makes it even harder for Mom and Pop shops to compete with big box stores—particularly Amazon, which has its own shipping service. Anecdotally, some small businesses have even had to lay off workers to make up for increased shipping costs over the last couple months.

Even with all the media attention on postal service delays, consumers—who have become accustomed to faster and faster delivery over the last several years—are likely to blame businesses themselves for late shipments. Small businesses that are the most vulnerable, such as those that are micro-sized, located in rural areas or owned by women or minorities, will feel the most acute impact. In fact, online retail marketplace Etsy recently wrote an open letter encouraging Congress to provide emergency funding for the U.S. Postal Service. Ninety-one percent of Etsy’s 2.8 million sellers use USPS to ship their products to consumers—83% of them are women-owned, sole proprietor businesses, and they will suffer greatly from a continued backlog in package delivery. With so many Americans out of work or subject to reduced hours, these extra income streams are more important than ever.

It’s not only the small business-consumer relationship that’s impacted by the slowed operations of the USPS. Small businesses also depend on regular mail delivery for paychecks, important paperwork, goods and supplies and mail-based advertising. As these items are delayed, costs for small business owners will increase. For example, checks arriving late to vendors mean small businesses may have to pay late fees, or even check cancellation and bank wire fees if checks are lost in the mail.

Fortunately, in a a bipartisan vote on Saturday—with 26 Republicans joining the Democrats—the House approved $25 billion in emergency COVID-19 funding to keep the USPS afloat, as well as create a process to plan for the long-term solvency of this vital public service. Obviously, the stakes are high. We have veterans awaiting their prescription medication, half a million seniors facing delayed Social Security checks and the possibility that mail-in ballots may not arrive in time for the upcoming presidential election. All of these items are crucial to the well-being of our nation.

If we hope to recover from the pandemic-related downturn, it’s also crucial that we bolster small businesses with all the support they need—from capital to workforce protection to, yes, a viable and efficient postal service.

This piece originally appeared in Forbes on August 24, 2020. You can view it online here .

AARP’s Tricia Sandiego Shares How Businesses Can Support Working Family Caregivers

Thu, 20 Aug 2020 17:04:00 GMT

NOTE : This piece originally appeared in NAWBO ONE on August 19, 2020. You can view it online here .

AARP’s Sr. Advisor for Caregiving and Health Tricia Sandiego is a family caregiver—though she never thought of herself as one until she started at AARP and realized the care she provides her aging parents make her more than just a daughter.

She joined AARP eight years ago with a background in public health, health communication, and health disparities. Her focus today is on health education programming and strategy, specifically on family caregiving. She leads AARP’s employer outreach activities to engage and influence employers and industries to help them support working family caregivers.

“We really believe we have to help working caregivers by meeting them where they are and giving them resources and support,” she says about America’s 43+ million family caregivers, “and we know at least 60 percent of them are at work.”

To better support small employers who want to be more caregiver-friendly, AARP and Public Private Strategies partnered to create this Small Business Caregiving Guide , which is highlighted and discussed in this Fortune magazine article . The guide includes information on four recommended steps businesses can take:

I had a chance to speak to Tricia about America’s caregiving crisis and what small businesses, and women-owned businesses in particular, can do to build more supportive workplaces for themselves and their employees.
How important is it that every small business owner with employees addresses this issue right now to provide support to those juggling work with caregiving responsibilities?
Tricia: “Caregiving has always been a challenge in terms of balancing your work life and personal life, but I think COVID-19 has highlighted the challenges of working family caregivers.
Family caregivers are the backbone of our long-term health care system. They spend an average of 25 hours a week providing care on top of holding down their full-time or part-time jobs. It’s an important time for employers to tune into the needs that their working family caregivers may have. Some may have already been dealing with this juggle and struggle, but you may not have been aware of it as many caregivers do not self-identify or disclose their caregiving status with their employers.
In addition to knowing who your working family caregivers are, you need to communicate often about the value you place on caregiving and the strategies and programs you already have in place or will soon be offering. Ask your employees how you can collaborate and figure out solutions together. There is often no one-size fits all approach."
Have you seen any challenges that are unique to women business owners—and what advice would you offer them specifically?
Tricia: “Six out of 10 family caregivers are women. As women business owners, you may be balancing caregiving and work yourself, so think about what resources are available to you on the caregiving side. What things are you able to delegate to others? You may not have the time to do everything for your loved one, so see what you can split up among other family caregivers in the mix, like a sibling or spouse. Or look into hiring help or a service to take care of certain tasks. Also, look at community-based resources such as your local Area Agency on Aging. There may also be resources available to you through your health provider or health insurance, for instance.
For your role as business owner, think about what systems you can automate. Look for ways to get things done without you having to be the one who pushes the button all the time. Look at backfilling and cross training your staff to be able to do some of your responsibilities, but also to be able to fill in for each other if you or an employee need to take a leave of absence. You may not need it, but always have a backup plan in place because family caregiving is not always predictable and doesn’t have a timeline.”
What are some of the most innovative things you’ve seen businesses do to address this issue?
Tricia: “The current situation has really put a spotlight on the need to know how to leverage and maximize virtual technology for internal and external uses. Virtual programming was available previously but not utilized to its full potential. For example, the pandemic has forced people to be creative in terms of presentations, conferences and meetings, and technology has enabled this.
Also, people have become really creative with scheduling. Throughout the day, someone working from home while caregiving might have longer days logged in at work to make up for the time they take to provide care for a loved one during traditional work day hours. Or you may consider compressed work weeks, alternative schedules (i.e. working at night), or job sharing with a team member. As long as the work gets done, I think employers are increasingly embracing that creativity in scheduling.”
For those businesses that are proactive and get this right, what are the greatest benefits?
Tricia: “Think about supporting working family caregivers as a critical talent management strategy. Most employers say that their employees are their number one asset. Businesses that get this right will benefit in terms of recruitment, retention, productivity, and employee satisfaction. All this has impacts on your bottom line in terms of cost savings and return on investment. We’ve found that benefits like telecommuting and flexible work schedules can provide businesses ROI anywhere from $1.70- $4.45 for every dollar spent. As the U.S. population is aging, there will be more of a need for family caregivers to provide care. Businesses that plan for this by offering supports and flexibility to their staff will be ahead of the curve."
If small business owners knew one most critical thing about supporting their employees in this way, what would you want it to be?
Tricia: “There are easy ways you can support working family caregivers, and you may already have benefits in place. But it starts with communication and showing you have a culture of acceptance and care. There’s no one-size-fits-all solution for working family caregivers because everyone’s journey and caregiving experience is different and every employer is different. Communicate with your employees about what you are willing to offer in terms of flexibility, support and benefits, and create solutions together.
Be sure to offer resources for caregivers. AARP has free resources that employers can use and distribute to their employees. Employers can point them to aarp.org/caregiving and distribute anything ‘caregiving’ we have.”

Lessons From The Rocky Mountain West: A New Colorado Program Can Help Small Businesses And Workers Lessen The Wealth Gap

Mon, 17 Aug 2020 15:09:00 GMT

Getty

A new law in Colorado will provide an automatic retirement savings program to small businesses across the state, giving more retirement security to nearly a million workers. In a time when Covid-19 and systematic racism have highlighted disparities in wealth and financial stability, this could be something for business leaders, policymakers and advocates to watch.

Small businesses have a proven track record of bringing jobs and wealth to all communities—especially ones of color. Putting a program in place that helps small business owners and workers plan for retirement is the sort of innovation we need from the government right now. Intrigued? Here is some background and how it works.

In essence, businesses with five or more workers who do not have retirement savings programs will offer access to automatic payroll deductions in an Individual Retirement Account (IRA), which is a public-private partnership administered by the state and managed by the private sector. This program is a portable benefit, allowing workers to take their accounts with them when they leave a job or roll them into an employer-sponsored account.

Gov. Jared Polis and the Colorado General Assembly have built upon the work of states like Oregon, California, Illinois and New Mexico , and this program could very well be a model for more states to follow. Retirement security is the foundation of financial security but it is an enormous challenge for working families in our country. Many people work for small businesses that aren’t able to offer the retirement options that large companies can. Retirement programs like Colorado’s can put many workers on a path to saving earlier in life, while bolstering small businesses and creating a more financially resilient workforce.

According to a recent Pew study , many small businesses, especially those with 10 or fewer employees, are unable to afford the costs and administrative burdens that come with private retirement security plans. State-facilitated programs enable businesses to offer access to them for free with simplified administrative operations for already overtaxed small business owners. They also help small businesses recruit and retain top quality talent that may leave due to the lack of retirement benefits, thus helping level the playing field between large and small employers.

The bottom line is that these retirement savings programs are showing positive returns. In Oregon, California and Illinois, they have enrolled over 150,000 employees who have accumulated more than $90 million dollars in collective assets. Another Pew study found that 79% of business owners in Oregon’s program said they did not experience any related out-of-pocket costs.

In the end, all boats can rise from public-private retirement programs. More Americans putting money away for retirement increases their financial resilience and is vital in creating a more equitable workforce. It’s time for states to give all employees the assistance in putting money away for retirement that so many of us take for granted.

This piece originally appeared in Forbes on August 17, 2020. You can view it online here .

A Conversation With Chiling Tong, President And CEO Of Asian/Pacific Islander American Chamber Of Commerce And Entrepreneurship

Tue, 11 Aug 2020 15:32:00 GMT

National ACE

Asian Americans are 6% of the U.S. population, but they run 10% of all businesses —more than any other minority community. According to McKinsey , the 2 million small businesses owned by Asian Americans generate $700 billion in annual GDP, employ 3.5 million people, and have a collective purchasing power of over $1 trillion . And these numbers are likely to grow, as Asians are projected to become the largest immigrant group in the U.S. by 2055.

Like other communities of color, Asian Americans and Pacific Islanders (AAPIs) have been disproportionately impacted by Covid-19. Many of the businesses they run are in industries hardest hit by the economic downturn, such as hospitality, retail, and other services. In fact, almost one in four employed Asian Americans works in these sectors. At the same time, the Asian community—like the Black and Hispanic communities—has had a harder time accessing small business relief such as the Paycheck Protection Program, which relies on existing relationships between entrepreneurs and banks. Many also face language and cultural barriers that makes accessing capital and other forms of support more difficult.

As President and CEO of the Asian/Pacific Islander American Chamber of Commerce and Entrepreneurship (National ACE), Chiling Tong advocates for the business interests of AAPI communities. With a career spanning the private, nonprofit and public sectors—including as Founding President of International Leadership Foundation, Chief of Staff / Associate Director at the Minority Business Development Agency and a Deputy Assistant Secretary in the Department of Commerce—Chiling has helped minority-owned enterprises access the capital and resources they need to thrive.

I recently discussed with Chiling the impacts of Covid-19 on AAPI-owned businesses, what these businesses need in order to remain viable and how entrepreneurs can lead the way in promoting equity. I’m grateful to Chiling for taking the time to offer insights on this historic moment; below is a summary of our conversation.

Rhett Buttle : What effective support of AAPI-owned businesses has there been from policymakers and other leaders (e.g., corporations, philanthropy)? What else should they be doing to help?

Chiling Tong : Overall, corporations and government officials have been doing a better job at listening to the concerns of minority communities and recognizing the fact that we have been disproportionately affected by this pandemic—and we applaud them for that. However, when talking about minority communities and minority-owned businesses, policymakers and corporations alike consistently leave Asian Americans and Pacific Islanders out of the conversation. The model minority myth continues to be an impediment to meeting the many needs of our diverse community. AAPIs face struggles similar to other minority communities. But, on top of that, since the beginning of the pandemic, many AAPI businesses have been victims of anti-Asian sentiment, racial discrimination and hate crimes. According to a recent study by JPMorgan Chase , revenues for the typical Asian-owned business in March were over 60% lower than they were in 2019. Many have had to close their businesses permanently. Yet, the effect of Covid-19 on AAPIs is often overlooked and forgotten by investors and society writ large. Like all other minority communities, AAPI-owned businesses need better access to capital, infrastructure and capacity development. We need our policymakers and philanthropic leaders to take seriously the need for investment into AAPI communities.

Buttle : What are the top things small business owners need to think about and do to keep their companies viable in these uncertain times?

Tong : We believe that every small business, especially minority-owned businesses, need three things. First, they need to know what financial resources are available to them—federal, local, private and corporate—and how they can access and understand the uniqueness of each funding source. This won’t solve all their financial issues, but it will provide much-needed stopgap funding.

Second, small business owners need capacity development and resources to adapt their businesses to this new normal. We need to do a better job at helping all businesses, including nonprofit organizations, understand how to operate in a new reality. This includes helping them develop new technology, planning and strategies.

And lastly: hope. We need to rely on each other to get through this. These are uncertain times. Collaboration between the private and public sectors will make our communities stronger, and our coalitions and partnerships will strengthen our collective ability to provide support for those who need the most help.

Buttle : Covid-19 and social unrest have further exposed the racial and economic inequality in our country. Does entrepreneurship have a role to play in addressing these issues?

Tong : Small businesses—especially those owned and operated by people of color, refugees and immigrants—are the backbone of our country because they are active, productive participants in their communities. When our businesses are successful, our communities are successful. This is why it is so important for us to partner together with our Black and Latinx communities to find solutions for our diverse business owners during this pandemic. Success and change will depend on how well we can work together toward our common purpose.

Racial and economic inequality are inseparably linked and are often amplified by a lack of capital in any given community. This is why entrepreneurship is so important in helping to promote equity. Entrepreneurship is all about having a new idea and acting on it. Now, more than ever, we need entrepreneurs to do what they do best. When we provide equal access to investment, capacity development and infrastructure in all of our communities, jobs are created, wealth takes shape, families are strengthened and barriers that exist today will be broken. When barriers are broken, we begin to see the beauty that exists in the restoration of communities.

Don’t miss my earlier conversations with Ron Busby , CEO of The U.S. Black Chambers, Inc. and Ramiro Cavazos , President And CEO Of The U.S. Hispanic Chamber Of Commerce.

Other Resources:

This piece originally appeared in Forbes on August 11, 2020. You can view it online here .

Digital Resilience—Why You Should Take Your Small Business Digital

Tue, 04 Aug 2020 18:34:00 GMT

Getty

There’s a reason why they call it “Main Street.” Small businesses have traditionally depended on foot traffic and a brick-and-mortar presence. But in the Internet age—and especially in the age of COVID-19—businesses that leverage digital tools have a distinct competitive advantage. Unfortunately, only 46% of American small businesses have an online presence. We need to change that if we’re going to enable an inclusive economic recovery for our nation.

COVID-19 has unearthed a myriad of challenges for small businesses, from lack of capital access to strains on caregiving . But this pandemic has also shown how going digital isn’t just a “nice to have” for small business owners; it must be a core part of your business strategy. The fact is, as lockdowns extend or restart in communities across the country, small businesses that prioritize digital resilience will be better positioned to survive and thrive.

Fortunately, savvy small business owners are adapting to our new virtual reality. PayPal reported 1.7 million new merchant accounts in the second quarter of 2020, triple the amount it usually adds per quarter. A recent report from Facebook and Small Business Roundtable found that 79% of businesses have made changes to their operations to accommodate their customers during the pandemic—with 35% expanding the use of digital payments. Fifty-six percent of those that use online tools say that their business makes at least half of its sales digitally. As the struggle with COVID-19 continues, businesses that maximize online tools will fare better than those relying on traditional avenues for reaching customers.

The case for taking your small business digital is clear. For one, an online presence helps you reach more customers. A recent report from eBay found that 96% of eBay-enabled small businesses are exporting to international customers, compared to only 1% of U.S. small businesses in general. On average, these eBay-enabled small businesses reach 17 different export markets, compared to an average of four markets for those not using this particular digital platform. If you own a rural business where the local customer base is limited, digital platforms are especially helpful for expanding your customer reach.

Even if you’re located in an urban area, more and more studies find that consumers prefer the ease and convenience of digital transactions. According to a Visa survey , more than 80% of consumers mention that digital tools such as an easy-to-use website or online loyalty program are motivating factors when deciding where to shop. An online presence also enables your business to be discovered by potential customers, whether they shop online or at your brick-and-mortar. By updating online profiles on Yelp and other platforms, your business becomes exponentially more discoverable.

That same Visa survey found that 61% of consumers plan to increase their online purchases over the next five years, while 78% plan to decrease or keep their in-store purchase the same. This shift toward online purchases was happening even before the pandemic took root. Imagine what it must look like now—and for the next year or more.

As a small business owner, you know that improving your customers’ experience builds brand loyalty and increases revenue. Today, that customer experience doesn’t always start—or end—in your store. Research company eMarketer estimates that 25% of purchases started in-store are complete online, and 25% of purchases started online are completed in-store. Both sides of the coin must be functional, welcoming, and easy for consumers for the optimal success of your business.

Leveraging digital tools can also help you reduce costs. In a report by Deloitte, 22% of small businesses that use digital tools said that it helped reduce operating costs, while 70% reported revenue growth that could at least partially be attributed to their use of digital tools. Visa’s survey similarly found that small businesses reported 57% less average cost of processing digital payments, inclusive of direct expenses and labor costs, compared to processing non-digital payments. This combination of increased revenue and decreased costs is a boon to your bottom line—one that’s particularly welcome during a public health and economic crisis.

It’s time to think about the future of Main Street—not just as a physical location, but as a digitally-enabled playing field. It’s time for small business owners to build the digital resilience of their enterprises.

This piece originally appeared in Forbes on August 4, 2020. You can view it online here .

Happy Birthday U.S. Small Business Administration: A Reflection On 67 Years Of Service

Thu, 30 Jul 2020 17:53:00 GMT

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This week marks the 67th anniversary of the Small Business Administration (SBA). President Dwight D. Eisenhower signed the law establishing the agency on July 30, 1953, giving it the stated mission to "aid, counsel, assist and protect, insofar as is possible, the interests of small business concerns.” In the decades that have followed, the SBA has accomplished a great deal in fostering and supporting small businesses in the United States. It has guaranteed billions of dollars in loan funding and provided guidance to small businesses in all stages of their development and operation. The post-World War II economic success that the U.S. experienced can be credited, in part, to the work of the SBA.

As the country continues to navigate the global health pandemic, we know small business owners continue to be incredibly vulnerable, especially Black and Brown business owners. Recent data shows a grim reality: 41% of Black-owned businesses closed between February and April of 2020, while 36% of Latinx businesses and 25% of women-owned businesses closed. We need the SBA to continue to do what it does well and strengthen its action in other key areas to support the economic recovery of our country.

Like all government agencies, the SBA has experienced its share of ups and downs. As we reflect on this anniversary and the current moment we are in, here are some key things to consider:

1. Bipartisan Support, Now and in the Future: Even in a moment where Washington seems more fragmented than ever, the SBA continues to have bipartisan support. It’s true that the SBA faced threats of being eliminated in the 1990s and its funding was frequently cut during President George W. Bush’s Administration. However, since then, its budget has received support from both the Obama and Trump Administrations, and its lending power was changed through the Great Recession and COVID-19 legislative relief packages. It must continue to remain an important endeavor for Republicans, Democrats and anyone in between.

2. SBA Has Helped Main Street Success - But More Can Be Done: Each year, the SBA provides support to over a million entrepreneurs and small business owners. SBA partners with banks and other lenders to administer loans to small businesses with a 90% guarantee and helps provide 23% of contracts for small businesses working directly with the federal government. It has at least one Small Business Development Center in every U.S. state to assist small businesses and provides grants to support nonprofits with the same goal. The SBA’s loans have supported small businesses for decades, but they do not cover every American who aspires to open one. For example, SBA loans do not cover solo entrepreneurs, gig economy workers and unbanked businesses. The COVID-19 pandemic has shown how these types of businesses can easily slip through the cracks in a crisis. The SBA should consider creating a program that moves beyond its 7(a) model to support them.

3. SBA Strengths and Weaknesses Came Into Focus During COVID-19 Pandemic: To help businesses stay afloat during this crisis, Congress established the Paycheck Protection Program (PPP), poured hundreds of billions of dollars into it and tasked the SBA with administering the program. Unfortunately, the SBA wasn’t prepared and had to lean heavily on the Treasury and other departments. The PPP has certainly had its flaws , but the program has provided necessary support for some small businesses. During this time, the SBA expanded its lender base by establishing collaborations with fintech companies—including Intuit, PayPal and Square—to administer PPP loans. Fintech companies are able to provide smaller loans to individuals who may not have the credit rating to borrow from banks and do a better job of collecting data, allowing for later analysis to inform policymakers, executives and investors. These partnerships played a critical role in administering PPP funding to small businesses and can be a road to democratizing the availability of funding for aspiring entrepreneurs.

4. SBA Needs More Voice Across the Government: The SBA can often be overshadowed by other agencies. While it has been given cabinet-level status depending on the presidential administration, that does not guarantee it truly has a cabinet-level voice. Often, its coordination with Administration-wide initiatives could be improved. Some of this could've helped ensure the PPP worked for small business and had a better rollout.

5. SBA Should Collect and Share Better Data: Even though they influence the financial lives of roughly 30% of the population, there is not adequate information from our federal government on small businesses and their owners. This contributes to disparate impact, continued underinvestment and solutions that do not meet actual needs. Historically, the share of SBA 7(a) loans distributed to Black and Latino borrowers has been very small, and their inability to obtain PPP funding helped lead to the closures discussed earlier. For SBA to be fully effective in supporting Black and Brown business owners (as well as other key populations, such as women and the self-employed), it needs to adhere to a data collection practice that is uniform and consistent.

Making a commitment to ensuring the SBA has the tools, resources and runway to be innovative in service of its core constituency will ultimately net a strong country and a strong step to creating a more equitable society.

This piece originally appeared in Forbes on July 30, 2020. You can view it online here .

The State Of Latino Business: A Conversation With Ramiro Cavazos, President And CEO Of The U.S. Hispanic Chamber Of Commerce

Mon, 27 Jul 2020 19:03:00 GMT

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If small businesses are the engine of the U.S. economy, Hispanic-owned businesses are the fuel that keeps the engine humming. Unfortunately, like too many small businesses nationwide, Hispanic small businesses now face a dire threat from the COVID-19 pandemic. In May, a survey of Black and Hispanic small business owners by Colors of Change and UnidosUS found that 47% of Hispanic owners predicted they’d be out of business in less than six months. Twenty-six percent have already had to lay off some full-time employees. And many can’t count on federal relief through the CARES Act and Paycheck Protection Program.

As America’s largest Hispanic business organization, the U.S. Hispanic Chamber of Commerce (USHCC) is at the forefront of addressing these challenges. USHCC serves as a platform for more than 250 local Hispanic chambers of commerce, representing 4.7 million businesses. In the present economic crisis, USHCC has created bilingual resources and provided hands-on support for businesses owners, including launching several grant programs to supplement government-funded programs and private sector partnerships.

I spoke recently with USHCC’s President and CEO, Ramiro Cavazos, about the challenges for Hispanic small businesses, the role of entrepreneurship in fostering equality and how policymakers can help businesses survive the pandemic. Ramiro previously served for 10 years as President and CEO of the San Antonio Hispanic Chamber of Commerce, and before that as Director of Economic Development for the City of San Antonio. I’m grateful to Ramiro for taking the time to offer insights on this historic moment; below is a summary of our conversation.

You can also read my earlier conversation with Ron Busby, CEO of The U.S. Black Chambers, Inc. on the challenges of health and wealth creation in Black communities and the role all of us can play in supporting Black-owned businesses.

Rhett Buttle : Hispanic-owned businesses have been among the hardest hit during this pandemic, and many don't have the cash reserves to survive an extended lockdown. What other impacts are you seeing on Hispanic business owners and workers?

Ramiro Cavazos : Historically, Hispanic businesses have had trouble accessing credit and loans alike. A recent study by JP Morgan Chase found that Black- and Hispanic-owned businesses are underrepresented among firms using external financing and face challenges of lower revenues, profit margins, and liquidity. So it’s no surprise that the recent PPP program was not equitable for most minority-owned businesses. This segment of the business community does not have the sufficient cash flow to increase their debt or gain further government subsidies. Many Hispanic businesses were forced to shut down—especially in the retail and hospitality space. Hispanic workers have also been among the hardest hit, with almost half in a Pew Research Center poll saying that they or someone in their household has taken a pay cut or lost a job—or both—because of the pandemic. What these enterprises need is a sound road to recovery with necessary liquidity and technical assistance.

Buttle : How have policymakers and other leaders—for example, corporate or philanthropic —stepped up to support the Hispanic small business community, and what more needs to be done?

Cavazos : Many corporate and government leaders have provided funds for the minority and small business community. To a large extent, Hispanic-owned businesses have not been able to access government funding through PPP or Economic Injury Disaster Loans. Half of Hispanic business owners who applied to the PPP were denied assistance—the highest rate of any group. Some corporations have assisted with payment deferments for their existing customers. We encourage lawmakers to continue to provide necessary access to capital—through business grants or forgivable loans—for our businesses to recover and thrive after the pandemic.

Buttle : Between COVID-19 and recent protests against police brutality, the deep inequalities of American life are increasingly exposed. What role can entrepreneurship play in bringing equality to our country over the long term?

Cavazos : Seventy percent of the U.S. economy is driven by consumer spending. Entrepreneurship belongs to everyone—as long as they have an equal chance to compete, access to capital and diverse markets and public contracting opportunities. Therefore, minority-owned enterprises, the fast growing segment of the U.S. economy, should be afforded more respect, more focus on procurement goal setting and expanded opportunities.

Buttle : What recommendations do you have for Hispanic business (and all small business owners) in the current environment?

Cavazos : Now is the time for our businesses to be innovative, drive businesses into the new technological world and diversify revenue streams. Finding niche products and service delivery opportunities is key to evolving both during and after COVID-19. Businesses should take this time to solidify relationships with their financial services institutions; find avenues for diverse lending through non-traditional revenues, such as crowd funding and fintech opportunities; and identify the nearest community financial development institutions and minority depository institutions in their respective community so they can solidify access to the capital they need to grow and thrive.

Other resources:

This piece originally appeared in Forbes on July 27, 2020. You can view it online here .

6 Ways Businesses Can Support Working Caregivers During COVID-19

Wed, 22 Jul 2020 15:12:00 GMT

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This pandemic has impacted the lives of every American, some more severely than others, and is straining our economy in never-before-seen ways. Businesses are fighting day-to-day to stay afloat, with many closing and millions of their employees filing for unemployment. Amid all this chaos, working family caregivers have also been quietly struggling to keep their heads above water as they balance what were already demanding challenges of meeting the requirements of their jobs and caring for loved ones. In fact, it is projected that unaddressed loss of productivity due to caregiving costs businesses an estimated $17.1 billion to $33 billion each year. Today, in the wake of COVID-19, these losses could be much higher if unabated.

One in six Americans in the workforce are also caregivers for an adult, and COVID-19 has exacerbated the stress of caring for a loved one. For example, the 20 hours a week working caregivers spend, on average, providing care has likely increased as they take extra measures to protect themselves and their loved ones from contracting this horrendous virus. Even before the pandemic hit us, a 2017 Harvard Business Review study found that more than 80% of employees who are caregivers said that it impacted their productivity. Most notably, 33% said it affected their ability to do their best work all the time. Imagine what that survey would say today.

As a business owner, you know that your employees are your greatest asset. Now is an opportunity to support your workers who are also our nation’s caregivers. Here are six steps that you can take.

1. Clearly communicate with your employees.

In times like these, there is no such thing as overcommunication. Give your employees real-time updates on your business, the steps you are taking to support those that have caregiving responsibilities, and your plans for keeping them up-to-speed during this unpredictable time. There are many resources to guide you in this process, including the Ragan Consulting Group’s “ 9 steps for communicating with employees during the COVID-19 crisis .”

2. Make a plan and implement it.

Determine how to adapt your business operations to meet the needs of family caregivers and begin doing so. Steps should include incorporating practices like cross-training to back-stop essential duties and preparing for employee absences due to personal illness or caring for ill family members. For more resources and guidance, check out the Small Business Caregiving Guide .

3. Review your sick leave and remote work policies.

Make sure that they are consistent with recommended guidance and clearly communicate these policies to employees. The U.S. Department of Labor’s resource center on COVID-19 and the American Workplace is a good starting point for your research.

4. Explore flextime, telecommuting or part-time opportunities.

If you currently don’t have caregiver-friendly policies, instituting one or all of these practices can go a long way toward rectifying that. If your business is one that simply cannot implement any of these, be sure to communicate how you are making your workplace safe through other actions, such as deep-cleaning, limiting travel and asking employees to self-quarantine if they feel ill.

5. Understand federal, state, and city-level policies.

There are many programs in place to help you and your employees navigate caregiving responsibilities and costs. For example, California allows paid leave for those who cannot work because they are caring for a seriously ill loved one. Check your city and state government websites for guidance. Public Private Strategies has also developed a comprehensive list of federal, state and local resources.

6. Encourage employees to embrace personal preparedness.

It is crucial that caregivers don’t neglect their own health during this crisis. Advise employees to watch their diet and take time for exercise and sleep. Also, encourage them to take standard steps to prepare for staying at home if needed and make a plan with family members and loved ones for if they get sick.

Whether you are a large corporation or a small business owner, these steps will go a long way in supporting the individuals that you work with and bolstering your business for the long term. COVID-19 has exposed the important role that small businesses and employers play in our society. By focusing on your employees who are also family caregivers, you can help your employees, communities and bottom line at the same time.

This piece originally appeared in Forbes on July 21, 2020. You can view it online here .

How Ecommerce Is Driving Small Business Recovery

Mon, 20 Jul 2020 15:36:00 GMT

3 Foundation Leaders On How Philanthropy Can Support Inclusive Small Business Recovery

Thu, 16 Jul 2020 18:45:00 GMT

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The destruction COVID-19 has wrought on small business is astounding. If we are going to recover fully— and even bounce forward to a more equitable future —we need small businesses to be front and center in our recovery efforts. Research highlights the crucial roles small businesses play in building healthy communities and a more inclusive economy. As we continue to navigate the impacts of COVID-19, small businesses are more important than ever—and every institution must do its part to support Main Streets in every community.

So far, the federal response has been uneven and unfair. Thousands of small businesses—especially those led by Black entrepreneurs —have been left out of federal relief efforts. President Trump earlier this month signed legislation extending the application deadline for the Paycheck Protection Program (PPP), federal aid intended to help small businesses weather the COVID-19 pandemic; yet, to date, the program has largely been a disappointment for Main Street. The uneven distribution of PPP loans once again demonstrated that federal policy can perpetuate racial inequity and leave communities of color behind .

While the federal government has a responsibility to do more, we need all our institutions to focus on helping small businesses rebuild better . In addition to the PPP, we've seen cities respond with small business relief funds. We’ve seen fintechs, technology and other corporations step up their giving, and even philanthropy is getting in the game. For example, PayPal announced a $530 million commitment to support Black business, strengthen minority communities and fight inequality. We need all this and more.

Some leading philanthropic foundations are already heeding the call. For example, recognizing the urgency of the COVID-19 moment, the Rockefeller Foundation has launched a collaborative to promote inclusive growth in 10 cities, focused on protecting communities from displacement and eliminating barriers to access capital and credit among low-wage workers and small businesses operated by women, Black and Latinx owners.

To better understand this critical moment, I asked three respected leaders how they’re thinking about the role of philanthropy in supporting small businesses. Here are some highlights from our conversations.

Mastercard Center for Inclusive Growth — Marla Blow, Senior Vice President

As the philanthropic hub of a global company, the Mastercard Center for Inclusive Growth is well positioned to leverage expertise, technology and partnerships in support of small businesses. According to Marla, “Ensuring the survival of the critical job creation engine in the US economy is one of the highest impact opportunities that philanthropy can tackle in the post-pandemic recovery.” The Center is prioritizing support for nonprofit Community Development Financial Institutions (CDFIs), which—as Marla puts it— “are the first responders on the scene to enable capital flows and loan relief to help small businesses weather the pandemic.” Among other things, the Center helps CDFIs integrate technology into their operations to improve service speed and efficiency, which has been critical as borrowers adjust to the COVID-19 crisis.

For example, the Center supported Grameen America to transition its customers, who are low-income women entrepreneurs, to digital banking so they can stay competitive in an increasingly cashless economy. Marla notes: “During the pandemic, digital payments enabled Grameen America to continue disbursing same-day loans.” The Center is now expanding its partnership with Grameen America as part of a broader $250 million commitment over the next five years to support small businesses and their workers in the wake of COVID-19.

Robert Wood Johnson Foundation — Shuma Panse, Senior Program Officer

As the nation’s largest philanthropic institution dedicated solely to health, the Robert Wood Johnson Foundation (RWJF) brings a unique perspective to the conversation about small businesses. “As a public health foundation we know that both wealth and income influence health, and believe that a strong small business ecosystem will ultimately lead to healthier, thriving communities,” Shuma told me. For RWJF, support for small businesses is not just about access to capital—though Shuma noted that this is critical, especially for Black-owned businesses, which are particularly underserved by lenders. It’s also about pursuing advocacy and philanthropy to ensure small business employees have access to affordable healthcare (a huge concern for small business owners too) and other benefits that promote overall well being.

Shuma also cited the importance of collaboration: “Philanthropic actors across issues and sectors—health, finance, community development, racial justice—have an opportunity to come together at this particular moment in time and step up support to small businesses, who have been uniquely and devastatingly hit by COVID-19.” As part of this, she suggested foundations and others look to small businesses to help them understand the needs and priorities of communities, noting that small business owners are trusted community leaders and can serve as champions for the issues that foundations care about.

Ewing Marion Kauffman Foundation — Jason Wiens, Policy Director - Entrepreneurship

The Ewing Marion Kauffman Foundation recognizes that access to capital is a critical lever of philanthropic support for small businesses—but that other interventions are also needed. For example, Jason mentioned “creating entrepreneurial networks of people with new ideas and mentors to help support them; championing policies that enable risk-taking like student debt relief, affordable healthcare and child care; and advocating for less red tape at the state and local levels.” Importantly, the Kauffman Foundation is thinking about how to reduce barriers that make it difficult for people to start a business in the first place. With the American dream out of reach for too many, Jason noted that philanthropy needs to help level the playing field: “The reality in entrepreneurship today is that if you aren’t a white man who lives on the coasts, it’s going to be a lot harder to access the resources you need to start a business.” In fact, data from the Kauffman Foundation shows that new Black-owned businesses start with only one-third the overall capital of new white-owned businesses.

Philanthropy can also help push a small business agenda to policymakers at all levels of government. As Jason put it: “Policymakers across the country are having conversations now about how to stabilize the economy, but we’ve seen what happens when entrepreneurs don’t have a prominent seat at the table—we get bureaucratic solutions that privilege big business and policies that continue to leave behind the women, people of color and rural residents who most need the support.” Philanthropic leaders like the Kauffman Foundation can help amplify these underheard voices in the halls of power.

These are three examples from philanthropic institutions that are thinking deeply about America’s health and the current economic crisis. As we move toward economic recovery, the intersection of health, wealth and racial equity are staring us right in the face—and this is no time to take our foot off the gas pedal. Small business is an untapped resource that can have a significant impact in the lives of the millions of Americans who own and work for them. The scale of the problem means that no single actor can fix it. Philanthropy must help small businesses, especially those led by women and people of color. If we invest in small businesses, we can build back better for all.

This piece originally appeared in Forbes on July 16, 2020. You can view it online here .

ICYMI: July 15 Is Tax Day This Year. 5 Tips For Small Business Owners

Mon, 13 Jul 2020 18:56:00 GMT

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If you’re a small business owner, it’s likely that the COVID-19 pandemic has left you little time to think about the upcoming tax filing deadline on July 15. Over the last few months, you’ve dealt with temporary lockdowns, lost revenue and layoffs—all while applying for desperately needed assistance .

Many small business owners understandably breathed a sigh of relief earlier this year when the government pushed Tax Day back due to COVID-19. Keith Hall, CEO of the National Association for the Self Employed , notes that “Given the COVID-19 public health emergency, the IRS allowed for the delay in both filing your 2019 tax returns and making tax payments without interest and penalty for so many small businesses who have been negatively impacted.”

Even as parts of the country begin to reopen, the latest U.S. Census Bureau data from late June showed 43% of small businesses are continuing to experience income declines. Tax Day may be the last thing on your mind. And you’re not alone. Anne Zimmerman, small business CPA and Co-Chair of Small Business for America’s Future (SBAF) said “This is an incredibly stressful time for small business owners. The most recent SBAF survey showed that 13% of them have considered bankruptcy. They have lost the last three months to the crisis and they’re scrambling to stay alive.” Even though the IRS extended the federal tax deadline to July 15 to give filers some breathing room during this national crisis, Anne says small business owners “have not had a lot of time to prepare for tax season.”

If you’re struggling to complete your small business filing during this stressful tax season, here are five things to be sure to remember.

1. Carry any net operating losses backwards.

The Tax Cuts and Jobs Act mandated that any net operating losses arising after 2017 could only be carried forward, not applied backward to taxes paid in previous years. However, recognizing the potential for devastating losses in 2020, the CARES Act reversed this. That means if you had a net operating loss in 2019, you can now go back and apply it to any tax paid in the five prior years in which you had a profit. In other words, you can get an immediate refund of prior taxes—acting as a sort of “hidden stimulus” for your business.

2. Take your qualified business income tax deduction.

While big businesses got a 40% cut on their tax rate through the 2017 Tax Cuts and Jobs Act, small businesses were less fortunate. However, if your business fits certain criteria—i.e., is a sole proprietorship, partnership, S corporation or LLC—and you have pass-through income, you may be eligible for a 20% deduction. Note that capital gains, dividends, interest income and income earned outside the U.S. are all excluded from the definition of “qualified business income.” While this temporary deduction pales in comparison to the tax cut for large corporations, every bit counts for small business owners during this time of fiscal uncertainty.

3. Contribute to your IRAs.

Here’s a sobering statistic: One-third of small business owners don’t have any retirement plan for themselves. As a small business owner, making tax-deductible contributions to an IRA or other account is one of the best ways to save up for your future—and that of your enterprise. Fortunately, when the IRS extended the tax filing deadline to July 15, it also extended the deadline for contributing to IRAs and other accounts. So for the next few days, you can still make tax-deductible contributions to your traditional or Roth IRA, health savings account, or—if you’re self-employed—to a Simplified Employee Pension or solo 401(k).

4. Be prepared for a big bill.

Even with the deductions and provisions outlined above, you may still owe federal taxes on your 2019 filing. Additionally, the deadline for estimated taxes on the first and second quarters of 2020—which some business owners and self-employed entrepreneurs are encouraged to pay—also falls on July 15. For some, that will mean a sizable bill. Though estimated taxes for this year are likely to be lower due to the pandemic’s effect on revenue, you should be prepared for a substantial hit to your balance sheet as all of these payments come due at once.

5. File an extension if you need even more time.

If you just can’t pull together all the necessary documentation to file your federal return by Wednesday, consider filing for an extension. The process is relatively simple— just one form —and can grant you another couple of months to complete your return. It’s vital to note that, even with an extension, you’re still required to submit payment (if owed) for 2019 and estimated tax in the first two quarters of 2020. Still, this option can be helpful if you need more time with the paperwork, but want to avoid late filing penalties.

As a small business owner, you have plenty on your plate. With these five tips, you can simplify the federal tax filing process and focus on what really matters: getting back in business.

This piece originally appeared in Forbes on July 13, 2020. You can view it online here .

Small businesses: Brace yourselves for a caregiving crisis

Mon, 06 Jul 2020 16:02:00 GMT

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All 50 states have started reopening from the economic shutdown and the lifting of stay-at-home orders put in place to combat COVID-19 . However, as more small businesses reopen their doors, many of them are going to be faced with the challenge of serving an increasing number of employees who need support as they care for loved ones battling illness or requiring extra help to stay safe and healthy.

Before the COVID-19 pandemic, roughly 26.5 million Americans were classified as family caregivers who were juggling work and unpaid care for an adult family member or friend. That number was already projected to grow, but now with a protracted public health battle against the coronavirus it is quickly becoming an inevitable crisis for America’s small-business community. Unaddressed, the loss of productivity owing to caregiving costs U.S. businesses an estimated $17.1 billion to $33 billion annually .

Already, one in six working Americans is a caregiver for a parent, spouse, partner, or friend with a chronic, disabling, or serious health condition. And demographic trends suggest there will be a greater share of caregivers in the workplace in the years to come. In fact, Census Bureau population projections show adults over the age of 65 will outnumber children under 18 for the first time in U.S. history by 2034, and many of those older adults will need assistance with chronic conditions. With fewer people available to provide care, many family caregivers will be sandwiched between work responsibilities and care responsibilities. That means caregivers in the workplace will be a new norm.

Despite the increasing demands for support, caregivers want to—and oftentimes must—continue working. That is not a surprise, since caregivers stand to lose a lot if they leave their jobs. Those who disrupt their careers or leave the labor force can face substantial economic risk and both short- and long-term financial difficulties. In fact, MetLife found Americans who provide care for their aging parents have lost, in the aggregate, an estimated $3 trillion in wages, pensions, and Social Security benefits over the course of caring for a loved one.

Fortunately, employers are sympathetic to their employees’ situations. A recent AARP study found that 94% of employers believe supporting caregivers at work is the right thing to do, and many believe it will continue to be an important workplace issue in the next five years.

To tackle this crisis, a new Small Business Caregiving Online Resource Guide , assembled by our respective organizations, offers employers practical solutions with a step-by-step approach to supporting caregivers in the workplace. The guide provides examples of best practices and robust resources, and creates a caregiver-friendly workplace road map. It recommends four steps:

Gather data: Recognize current workplace gaps by understanding how your employees think about caregiving.
Build a friendly culture: Create a supportive and inclusive workplace culture around caregiving through open discussions, manager training, and employee education.
Implement specific strategies: Provide caregivers with the flexibility and managers with the support they need by incorporating benefits and programs into your workplace.
Connect employees with resources: Help your employees navigate their lives as working caregivers by sharing resources that help them prepare for and provide care.

Employers who adjust to employee caregiving needs are positioned to receive the best from their staff. Employees working for caregiver-friendly businesses are more engaged, productive, and less likely to leave. Business owners with formal policies also say it is easier for them to accommodate adjustments, such as schedule changes or leave requests.

As small-business owners reopen, developing a caregiving-friendly workplace can no longer be an afterthought. Between changing demographics and a virus that will be with us for the foreseeable future, now is the time to take action and create a small-business community where both businesses and families thrive. The small-business owner who prepares for this emerging crisis today will be better positioned to tap the full potential of their greatest assets—their employees—tomorrow.

This piece originally appeared in Fortune on June 16, 2020. You can view it online here .

Nancy LeaMond is executive vice president and chief advocacy and engagement officer at AARP. Rhett Buttle is the founder of Public Private Strategies, Executive Director of the Small Business Roundtable, Founder of the NextGen Chamber of Commerce, a Senior Fellow at The Aspen Institute, and a contributor for Forbes.

Want To Serve Your Country? Start A Business

Thu, 02 Jul 2020 20:13:00 GMT

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Today is a great day to be an American entrepreneur. It might seem counterintuitive, with much of the country slowly re-emerging from months of physical and economic lockdown, businesses shuttered across the U.S. and some industries poised to never fully recover. At the same time, the attention of policymakers, advocates and lenders has never been more focused on small business owners.

Entrepreneurs should make the most of this moment—not only for their own advancement, but to advance our nation as a whole.

Whatever our economic recovery looks like, small businesses will lead the way . For that, we not only need existing businesses to survive the pandemic—through PPP and other support —we also need new businesses to be created. Despite the current downturn, this isn’t as crazy as it might seem. According to a 2009 study by the Kauffman Foundation, more than half of the companies on that year’s Fortune 500 list were started during a recession or bear market. Big name companies like GE, IBM, Disney, Hewlett Packard—even Internet-age firms like Uber, Slack and Venmo—were all founded at a time when our economy was in dire straits.

At the moment, there are good reasons to follow in the footsteps of these businesses. The Fed indicated last week that it plans to keep interest rates near zero through 2022, in part to support struggling businesses. Many of the upfront costs of starting a business—equipment, supplies and office/retail space—may be cheaper right now due to a lack of demand. As businesses shutter or downsize, their former customers will be looking for new sources of reliable goods and services. Their former employees will be looking for jobs. And there are opportunities to create new industries and markets based on our current moment, as changes to the ways we work, consume and entertain solidify into our new normal.

If you’re looking to start a business right now, it’s probably out of grim necessity. Maybe you’re one of the 21 million Americans who are now unemployed and looking for a viable income. The good news is that small business ownership is a proven path to building household wealth and financial security.

But despite all of the incentives to start a small business, there are still risks. Given the role that Main Street will play in pulling the country out of this recession, policymakers have a patriotic duty to encourage American entrepreneurship right now—and to ensure entrepreneurial opportunities are accessible to all.

How can policymakers incentivize new business creation? A number of bipartisan proposals have already been put on the table. For example, Senators Cory Booker (D-NJ), Patty Murray (D-WA) and Steve Daines (R-MT) introduced the Recharge and Empower Local Innovation and Entrepreneurs Fund (RELIEF) for Main Street Act , and a group has worked across the aisle to introduce the same legislation in the House. This $50 billion fund would build on what’s already working at the city-, county- and state-levels by providing cash to seed and scale small business relief funds. While the fund is focused on relief to existing businesses, experts are calling for some of the funding to create “Main Street Regenerators” that would be responsible for speeding the overall recovery of local business districts. These Regenerators would fulfill a number of critical roles, including seeding new entrepreneurship to revitalize vacant business spaces. To do so, Regenerators would need flexible capital, which Congress could appropriate either through the RELIEF for Main Street Act or other legislation.

Another example: Before COVID-19 hit in full force, Democrats in both the House and Senate introduced the New Business Preservation Act , which proposed a Treasury-administered program to incentivize venture capital investment in innovative and promising start-ups. This legislation would allocate $2 billion for states to attract private venture capital to promising start-ups by offering a one-to-one match of federal investment. According to the Center for American Entrepreneurship , which supports the bill, thousands of start-ups have been shut out of the PPP and other pandemic relief. The New Business Preservation Act would help ensure that innovative start-ups are a core part of America’s resurgence post-COVID-19.

Finally, policymakers need to ensure that capital and other support is equitably distributed to new business creators. The Start Us Up Coalition (of which my organization is a member) has proposed a number of policy solutions for every level of government, focused on both short- and long-term support for entrepreneurs. Among them is a call for Congress to make substantial funding available to states to expand access to capital for new businesses, especially for female, minority, immigrant, and rural entrepreneurs. But the plan also goes beyond access to capital. Recognizing that personal financial obligations—such as student loan payments and retirement contributions—make it even harder to start a new business, the plan proposes tax deferrals and incentives that would strengthen the social safety net. It also proposes including information and tools on entrepreneurship in workforce development programs to help young Americans take the leap into business ownership. These types of comprehensive, non-capital support would provide critical incentives for would-be entrepreneurs.

The bottom line is that some businesses will not weather the current crisis. We can’t let our economy suffer a war of attrition, with no new businesses to replenish those that fail. Policymakers have always played a vital role in supporting American entrepreneurship, and they have a duty to step up once again.

And for the would-be business owners out there: The future of our country depends on you.

This piece originally appeared in Forbes on June 16, 2020. You can view it online here .

5 Things Small Businesses And Their Workers Need To Survive COVID-19 Beyond PPP

Thu, 02 Jul 2020 19:40:00 GMT

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This week, the Senate will reconvene to consider changes to the Paycheck Protection Program (PPP)—a well-intentioned, if poorly executed , effort to help small businesses and their workers survive the economic impacts of COVID-19. The PPP needs fixing: in particular, small business owners are pushing for more time and flexibility in spending their loans. A worthy endeavor, but reforming the PPP alone will not make it possible for small businesses to recover and bounce back stronger. Congress should consider other priorities that will be critical to the long-term economic success of small business owners and their employees. Here are five:

1. Direct grants and access to other types of capital. Small businesses will need additional cash infusions to sustain their operations. The PPP was a step in the right direction, but is not a viable solution for all small businesses, especially those owned by people of color. Some businesses don’t fully meet the criteria or are afraid to access the loans because of the strings attached and lack of clarity around the forgiveness rules. Importantly, the PPP was a plan to help employees of small businesses retain their jobs. But business owners have myriad other expenses, including rent and utilities. COVID-19 is not going away anytime soon, and many businesses will have to operate at a reduced capacity and demand. Cash grants and/or low-cost, long-term loans can help business owners pay their bills, keep their businesses afloat while they rebuild consumer demand, and bring their employees back safely.

The recent $10 billion set-aside for community development financial institutions (CDFIs) in the PPP was a step in the right direction. In addition to cash grants, there are other creative models for getting capital to small business owners. For example, credit unions—which are not-for-profit entities— have deep reach into local communities and rural areas. Policymakers should consider allowing credit unions to remove caps on their member business lending, allowing them to make more loans in their communities during this extraordinary time.

Reopening will be like opening a business for the first time—with all the requisite up-front expenses. A recent survey by Facebook and the Small Business Roundtable found that 41% of owners and managers plan to dip into their personal savings to reopen their businesses when the time comes. We’ve already asked for a lot of sacrifices from small business owners. Do we really want them to sacrifice their personal financial security? Making grants and long-term loans more available may help prevent that outcome.

2. Help with healthcare costs and coverage. Research from the Commonwealth Fund shows that the #1 challenge identified by small business owners is healthcare costs. While things may never be “normal” again, the struggle for small employers to offer affordable healthcare will remain. The smaller the business, the bigger the challenge. And the costlier healthcare becomes to a business’ bottom line, the more they shift that cost burden to their employees—by increasing deductibles and copays, requiring higher premiums, or reducing/eliminating dependent coverage. In fact, one-third of the small business owners surveyed said they’ve considered discontinuing healthcare coverage for their employees altogether.

That was before the pandemic. In recent months, the Kaiser Family Foundation estimates that 27 million Americans have lost their (mostly employer-paid) health insurance. Small businesses need help providing adequate and affordable healthcare to their workers, now more than ever.

Medicaid and marketplace coverage options are already available to support some small businesses and their workers, and they could be further bolstered to ensure that as many people have comprehensive health coverage as possible in this crisis and beyond.

3. Support for caregivers and paid leave. Like many, small business owners and employees are struggling to balance their work and family lives right now. According to the recent Facebook and Small Business Roundtable State of Small Business Report , nearly half of small business owners feel burned out trying to take care of business and household responsibilities at the same time (and women owners reported this at higher rates than men). Meanwhile, according to AARP, even before the pandemic, an average of 1 in 5 employees was providing care for an aging, ill, or disabled family member (this number has likely increased). While almost all small business owners agree that “supporting caregivers in the workplace is the fair and right thing to do,” only 18% have a formal, written policy to address family caregiving obligations.

As these businesses reopen, both owners and workers are concerned about how to continue caring for families—especially with children still at home—and minimize their likelihood of transmitting COVID-19 back to vulnerable members of their household. While the Families First Coronavirus Response Act expanded paid leave options, the benefits are limited and not well publicized . The Center for American Progress estimates that nearly half the private sector workforce may be excluded because of exemptions for both very large (>500 employees) and very small (<50 employees) businesses. Congress must innovate to close these gaps—and subsidize the cost for small businesses that otherwise can’t afford it—to make sure no workers are left behind.

4. A fairer tax system. A poll conducted by Morning Consult for Business for Responsible Tax Reform found that 53% of small businesses believe the tax code favors large businesses over small ones. Small businesses don’t have high-powered lawyers and accountants who create carve outs and loopholes; reinforcing an unequal playing field and putting them at a competitive disadvantage. The tax reform bill in 2017 furthered this inequity.

The CARES Act does include some tax relief for small businesses like the Employee Retention Credit, which provides a fully refundable tax credit up to $5,000 for qualified employee wages paid during the crisis. But small businesses remain cut off from pro-growth, pro-worker tax policies that could be crucial to survive.

Congress needs to review the tax code and enact policy that emphasizes simplifying the tax code for small businesses and their workers. Given the importance of small businesses coming out of the COVID-19 recession, we must lower the barrier to entry for small business ownership. Simplifying the tax code would achieve that objective.

5. A seat at the table. None of the solutions above work if the voices of small business owners and workers aren’t included in decision making. Only they know the precise challenges they are facing as we adjust to this new normal. The emergency solutions put in place at the beginning of this crisis were well intentioned, but incomplete—in part because small businesses are not well understood by policymakers.

The bottom line is that small business survival requires us to go beyond PPP. Policymakers must consult with small business stakeholders to ensure that the next phase of relief goes hand-in-hand with the proposals above, and anything else that small businesses need to survive this crisis. If these businesses fail, it’s the most vulnerable workers—hourly, low-income, and/or under the age of 25—that will be hit the hardest , making long-term recovery even more difficult. The only way to rebuild our economy is to put small businesses and their workers front and center.

This piece originally appeared in Forbes on June 2, 2020. You can view it online here .

Why Bounce Back From COVID-19 When We Can Bounce Forward?

Thu, 02 Jul 2020 19:30:00 GMT

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With unemployment claims topping 36 million, and both manufacturing and retail sales experiencing steep declines, there’s no doubt that America’s economic recovery faces a long road ahead. Last week, Federal Reserve Chairman Jerome Powell delivered a sobering view of the future, noting that “the loss of thousands of small- and medium-sized businesses across the country would destroy the life’s work and family legacy of many business and community leaders and limit the strength of the recovery when it comes.”

The COVID-19 crisis has made clear the central role small businesses play in our daily lives and the extent to which our nation’s economic well-being relies on their financial health. Small businesses are found in every American community. They create jobs and wealth, they enliven our towns, they invigorate our local economies— and poll after poll shows that small business owners are among the most trusted groups in the country. One hundred million people—representing the broad and diverse faces of America—are either small business owners or work for a small business.

Indeed, people of color own more than 11 million businesses , collectively generating more than $1.8 trillion in annual sales. Women-owned businesses generate $1.9 trillion in revenue and are also steady job creators—in the last five years, their total employment rose 8% versus less than 2% for businesses overall. Business ownership is also a proven path to household wealth creation and spending power, which are critical for economic growth. On average, business-owning households earn more than twice the wealth of their wage-earning peers, and this impact is even more pronounced for business owners of color.

As we think about the post-COVID-19 future, we must take advantage of that influence, broad reach and deep community impact. The best way to achieve a recovery for all is to put small businesses and their job-creating, wealth-building power at the center of our recovery efforts. With the right tools, small businesses can help us all rebuild.

But to do that, we must act swiftly. Small businesses are facing an existential crisis and the federal government’s emergency response has been poorly administered. Data released by the U.S. Census Bureau last week showed that 74% of small businesses surveyed have had revenue declines and 41% only have enough cash on hand to maintain business operations for the next month or less.

Tight margins are typical for small businesses, with or without the current crisis. Most don’t have significant cash reserves on hand, meaning even minor disruptions to revenue can force them to shutter. In the face of COVID-19—as big a disruption as most small businesses have experienced—Congress created the Paycheck Protection Program (PPP). But while 75% of small businesses surveyed by the Census Bureau requested assistance through the PPP, only 38% have received it.

Although the PPP loans were designed to help small businesses, the program hasn't worked as intended. The implementation, particularly in the first round, has skewed toward preferred or established customers of big banks. This leaves out many small businesses that aren’t among traditional lenders’ preferred customer base because their financing needs are considered too small or their businesses too risky.

This gap is more acute in low-income communities and communities of color. Although this is where 43% of small businesses are found, historically they are underserved by big banks . An Inspector General report recently found that the SBA did not direct private lenders to prioritize minority- and female-owned businesses as Congress intended, and a poll released this week by advocacy organizations Color of Change and Unidos US found just 12% of black and Latino small business owners who applied for federal aid received what they had asked for. Forty-one percent said they were denied assistance entirely. Even more concerning, nearly half said they may have to close their doors for good in the next six months.

Even with the best of intentions, this relief package is amounting to a new form of redlining—further widening an already-vast racial wealth gap. After the 2008 housing market crash, it took the nation’s most prosperous zip codes less than five years to replace the jobs lost during the Great Recession. And yet, more than 10 years later, the most distressed communities have yet to recover.

We cannot let history repeat itself—and everyone, from government to business to the philanthropic and financial sectors, has a key role to play. Providing small businesses with the support they need to keep workers on the payroll and adapt their revenue streams will require significant investment. But ultimately, that investment will drive our economic recovery. By bolstering small businesses—particularly those that are traditionally underserved—we can speed our post-pandemic comeback and ensure it’s more equitable than what came before.

If COVID-19 is an unprecedented challenge, it also presents us with an unprecedented opportunity. The opportunity to rethink the rules that govern our economy and leave so many without a safety net in times of crisis. The opportunity to not just bounce back from this crisis—but bounce forward with small business front and center.

This piece originally appeared in Forbes on May 21, 2020. You can view it online here .

The Impact of COVID-19 on Federal Opportunity Zones

Wed, 03 Jun 2020 14:01:00 GMT

Working from Home: Balancing Work Life and Home Life

Fri, 29 May 2020 20:38:00 GMT

Working from home is like living two lives in the space of one. You’re managing your job — and also managing partners, children, pets, roommates, ringing phones, chores, neighbors, and all the other actions and distractions that go with home life.

Balance is of the essence. Home life suffers if work life overwhelms it and vice versa. You can’t just shut your office door and work undisturbed for 12-14 hours a day. Nor can you stop work whenever a partner, child, burst pipe, or eager dog interrupts.

Balance depends on three principles: boundaries, discipline, and care for yourself and others.

1. Boundaries

Claim a space for your office. “Find a comfortable, private spot in your home where you’re going to work,” says Julie Bort, a freelancer living in Colorado, “preferably one where you can close the door.” You need that privacy for phone- or Web-enabled meetings and interviews.

“I have a separate room that’s the office,” says Joe Diorio, 64, who publishes a newsletter in Nashville, Tenn. “I have a dedicated office space,” says Vikki Lovvoll, 49, who works with pharmaceutical firm Braeburn in Lawrenceville, N.J., “but it’s literally a small folding IKEA table top in a strategically located corner of the room, with good lighting in case I need to go on video.” Jen A. Miller, 39, a writer in Audubon, N.J., says her office is “my dining room table or at a standing desk which is my kitchen counter.”

Whatever the set-up, make it your own. Marie Kondo, guru of organization, says on her website , KonMari.com, that “creating a calm, uncluttered environment will enhance both productivity and joy.”

Kondo also suggests holding the line. Keep home and office apart. Avoid sprawl: it’s messy and may test the patience of others in the house.

Make sure your spouse/roommate/partner/family knows when and where you’ll be at work.

Get buy-in from those you live with. Cooperation is key. Many couples, for example, both work from home. Carolyn Haines, 33, of Lawrenceville, N.J., and spouse Chris break up childcare duties. “Each gets five straight hours of focus time while the other watches the kids,” she says. “We make up extra work hours by one of us getting up really early and the other staying up late.”

SaraKay Smullens, 80, a therapist and writer in Philadelphia, Pa., says that during the workday she and husband Stan “are in different parts of our apartment and do not interrupt each other. … At 5, Stan and I stop. We have a glass of wine and take turns preparing dinner. … Then we have an evening.”

2. Discipline

Get a professional start. Shower and dress for work. “I feel like a lot of people are skipping showers,” Miller says. “Psychologically, it’s the beginning of the day.” Is there a dress code? Ailene Izquierdo, interim chair of the Department of Communication at Florida International University in Miami, Fla., says, “Working in pajamas may be comfortable, but you may not be as productive or mindful that way. Maybe you don’t need a suit and tie, but business casual is a good idea.”

Many people perform what Kondo calls “boundary rituals,” something to signal that the workday has begun. Chris Van Es, 61, a freelance artist in Port Hope, Ontario, Canada, for more than 30 years, says, “Have a routine that you use to start work — finish the crossword, whatever.”

Make a schedule and keep to it. Start work at the same time every day. “Structure your day no differently than if you are going to an office,” Diorio says. “I know it sounds simple, but it works.”

Some folks have a six- to eight-hour block, just like at the office. Others schedule two or three blocks of time, interspersed with tasks such as home-schooling or shopping. Some assign specific activities to specific times. “I tend to write stories in the mornings and do interviews in the afternoons,” Miller says.

Keep a calendar or daily task list. These organizational tools are also motivators that give your day structure and momentum. “You want to keep track of yourself for putting in a full day’s work,” Bort says. “I do it with a task list, X things I need to get done every day, so you can say, ‘Hey, if I accomplish these goals today, great. Anything on top of that is gravy!’ ”

Give yourself a break. Shorter breaks let you clear your head, unkink your back, get a drink or snack, check in with partner or family, and return refreshed. Longer breaks could include lunch, power naps, exercise (see below), or family hangout time. Some folks ink in “to-do times” for domestic tasks like check signing; calls to repair people, lawyers, teachers, or doctors; or pressing homework issues.

Set a hard and fast quitting time. Don’t work all the time. (The temptation will be there.) Maintain time boundaries and avoid job creep: Experienced workers-at-home know a regular quitting time is essential. Roomies, friends, family, and pets deserve it.

“At the end of the workday,” Miller says, “the computer comes off the dining room table and goes on the bottom shelf of a special table and goes away. My notebook, my to-do list, all go away. If I don’t have time off, I can’t recharge for the next day. Same for weekends.”

3. Care for self and others

With good boundaries, everyone’s buy-in, and a clear schedule, you’ll already be taking care of yourself, your coworkers, and those who share your home life. But remember to build in time for social interactions, recreation, and reminders of home life.

Stay in touch with people. Lovvoll does it on her breaks: “I schedule ‘virtual walk-and talks,’ work and personal.”

Schedule exercise, hobbies, or outdoor time. Lovvell suggests doing things “you normally wouldn’t have time to do (art/bake bread/home project/learn something new).” And make exercise part of your day, whether it’s yoga, a brisk walk, or a run, make exercise part of your day. Get out of the house: it’s essential (Lovvoll: “If the weather is nice, go outside!”). “Usually,” Miller says, “I run first thing in the morning, or mid-morning.”

Judy Gray, 72, of Tallahassee, Fla., is remotely handling an interim CEO job for an international veterinary association based in Texas. In between calls and meetings, she makes sure to “step away and do something physically demanding like power washing the sidewalk and staining the deck and playing ball with the pups. Or sit on my swing and read. It reminds me of my ‘real’ life, and I’m refreshed and ready to dive into the job again.”

Have a memento of home — a family photo, a kid’s soccer trophy, a framed diploma — in your office. Or perhaps it’s a living reminder. Nancy Ehrlich Lapid, 63, a medical editor in Chatham, N.J., says, “Among my tricks for keeping my mood up is making every day Take Your Dog to Work Day.”

Balance can be elusive, and it’s seldom perfect. Whether it’s a work call at dinner time or a cat leaping on your lap during a Zoom conference, interruptions happen. That’s life. But both work and home life benefit from the effort to achieve balance. With the gentle closing of a door, a good day at the office can turn into an even better day at home.

John Timpane is a writer and editor working from home in New Jersey.

Staying Connected for the Remote Worker

Fri, 29 May 2020 20:30:00 GMT

Working from home doesn’t mean working alone. For both veteran and novice remote workers, it’s vital, more now than ever, to stay connected with boss(es), coworkers, clients, and contacts. Writing in the St. Louis Business Journal , Kristin Tucker, Managing Principal at TDK Technologies, says, “People who succeed in remote working scenarios tend to be open, honest, self-motivated, results-oriented, and good communicators.”

At the office, you can walk over and talk to your officemates or superiors. Once the scene shifts and it’s time to work from home, however, things change. Effective workers bridge the gap and make sure staying in touch — frequent, concrete, to-the-point, and above all human — is built into the workday.

That’s not just for the people you work with. It’s also for you. Being a communicator means being a part of a team, a project, a network. Good communication can ease that sense of being isolated or invisible.

The key, says Aileen Izquierdo, 46, Interim Chair for the Department of Communication at Florida International University in Miami, is that “the basic tenets that work in the traditional workplace transfer well to the remote setting.”

Below are some tips from the pros.

Be proactive. This is crucial, especially for those just starting out. Team members need to find out that their superiors, coworkers, and clients expect. Managers need to do the same thing: Making clear what’s expected right at the outset will head off a host of misunderstandings.

“Instead of guessing,” says Izquierdo, “we need to ask questions.” Employees, she says, should ask, “How does my boss want me to communicate? Mornings? Evenings? Multiple check-ins daily? A daily wrap-up email or video conference? A status review at the end of the week?” If you are new to working from home, she says, take good care of your clients by laying out your schedule and intentions early: “ ‘Dear client: This is what you can expect from me. I will check in with you or meet with you at this time, et cetera,’ so the client is not wondering.”

Such steps may seem obvious, Izquierdo says, “but once they’re taken care of, we won’t have any confusion, as in, ‘Oh, I assumed this was what you wanted.’ ”

Overcommunicate. Whether you’re a boss or an employee, communicate often and with clarity and content. Touch base with people regularly. Always have something useful for them, even if it’s just a quick one-minute update. Team members, prepare well for conferences: Come with a few good ideas to contribute, a few good questions to ask. Be ready to engage queries.

Overcommunication is important up and down the company hierarchy. Sara Sutton, 46, is CEO and Founder of FlexJobs, a working-from-home company with a virtual office in Newtown, Conn. She and her team “try to keep each other informed of what we’re working on. And when in doubt, we proactively ask questions and bring up subjects we’re unclear about. Essentially, the more transparent and open, the better.” That includes suggestions, doubts, news, updates, feedback, or doubts.

Know the best stay-in-touch tech for your job — and use it. Technology can be overwhelming — but no one needs to know every app and program. If your group uses Zoom, your office uses Slack, or your supervisor prefers updates via Skype, master them (it’s easy). A good computer and excellent Wi-Fi are essential. If you haven’t already, consider investing in a good set of headphones and a comfortable, ergonomic chair.

Don’t forget broad social-media platforms like Facebook and Instagram. This is the age of social media marketing: Thousands of companies, sales officers, and entrepreneurs use them to expand the audience for their products and services. But these media are not just for marketers; they’re for everybody. Follow people you’d like as professional contacts. Use Facebook Messenger to engage contacts who follow you back. Master the fine art of social sharing — posting on Facebook, Twitter, Instagram and elsewhere in prominent, arresting ways, with links viewers can follow back to you and what you do.

There’s also such a thing as a phone. It may seem old-fashioned in light of the many virtual means now available for staying in touch, but it remains a powerful way to reach people.

“We do see some video fatigue,” Izquierdo says, “and the phone can be a less stressful way to stay in touch, especially one-on-one.”

Change it up. Speaking of video fatigue, many of us are feeling it these days. Video isn’t right for all purposes; plenty of research suggests that it should be used judiciously, for work of the highest importance. Managers can vary the media they use for staying in touch with their charges, as can workers-from-home with clients and coworkers. Phone, email, file sharing, and messaging have their roles in maintaining variety and clarity.

Be professional. Remote workers should look as good as they want people to think they are. There is some dressing-down in the stay-at-home work world, but it’s better to look a little more dressed than a little less. Mary Acord, 62, a teacher in Fairfax, Calif., says that her first aim every morning is to “try to clean up and look reasonable for online meetings.”

Give good camera. One cardinal rule is the same as for taking photographs: Face the light, don’t have it behind you. The ideal set-up is near a window, facing out. For windowless rooms or night conferences, put a lamp behind your laptop.

No looking down at the camera. Your laptop should be about 12-14 inches from your face, at eye level; stack a book under your laptop to get the level right. Bright or glaring backgrounds tire the viewer’s eye, so prefer darker backdrops. Make sure nothing distracting is in the picture.

As for sound, most laptops have adequate mics at about a foot of distance. If it’s not sounding good, consider buying an external mic. Most important of all, know what you look and sound like. Do some dry runs. Record them if you can; it’s painful but informative.

Practice good remote etiquette. Remote communications are just different from face-to-face interaction. “I try to keep in mind how the other person is going to hear what I’m saying,” says Tracy Quan, 42, a writer in New York. Some things might not come off quite right; be ready to clarify. The reverse also holds true: Be ready for, and patient about, unclear or uncomfortable moments, and take nothing personally.

“There’s a built-in awkwardness, and it’s easy to sound rude,” says Julie Bort, a “50-ish” writer in Colorado. “Always be willing to explain, always ask questions.”

Respond in a timely fashion when contacted. “The main thing that makes me a good communicator,” Quan says, “is that I follow up with people.” Initial contacts are time-sensitive; act on them. Superiors, coworkers, and clients get priority — but professional contacts deserve timely response, too.

One useful tool is the “snooze” feature found in Gmail, Facebook, and elsewhere. Snooze lets you schedule emails to resurface at a specific time. If you send someone an email, or they send you one, you can schedule that to come back up, as a timely reminder — and a prompt to respond.

Keep an active communications schedule. Set a routine for certain kinds of communications — urgent in the morning, say, less urgent after lunch. Acord says early morning is her time to “start answering all the emails about how something isn’t working the way I’d hope.” Jeff Hurvitz, 70, a long-term care insurance specialist in Abington Township, Pa., says, “I follow up with emails and client contacts in mid-morning.”

Consider keeping a communication log. Keep track of whom you just talked to and when. Know whom you need to contact and schedule it. Constantly revise and maintain your schedule. And plenty of cell phones and computers have alarm or prompt features you can link to your calendar, to remind you about calls or meetings ahead of time.

Keep it human. Depending on company culture and the personalities involved, both managers and team members may introduce a personal note to remote meetings. Ask people how they’re doing. Recognize their personal milestones, including birthdays, babies, and achievements.

Check in with people. “I have been calling everyone on my contacts list,” says Joe Diorio, 64, of Nashville, Tenn., “if for no other reason, just to say hello. It helps me keep sane and keeps me in touch.”

Supervisors, team members, everyone, Sutton says, “have to make a really solid effort to build and maintain good working relationships. One new thing we’re doing to start meetings is to have everyone offer a one-word check-in that describes how they’re doing. It’s comforting to know others may be sharing your feelings, and it’s a good way for us to keep a pulse on how our team is doing, emotionally and mentally.”

People who recently have gone from an office setting to working from home can find that they miss the water-cooler moments, the people they used to run into around the office, the informal ways they made friends and exchanged ideas. Izquierdo says it’s vital constantly to “establish and refresh lines of communication, check in, say hi to each other.”

And that may be the big takeaway about communication for those working from home: When you’re the most professional and the most effective, you’re also the most human.

John Timpane is a writer and editor working from home in New Jersey.

Public Private Strategies Founder & Small Business Roundtable Co-Executive Director Moderates Roundtable Featuring House Speaker Nancy Pelosi to Discuss COVID-19 & Small Business

Thu, 07 May 2020 17:37:00 GMT

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Inclusive Recovery in US Cities

Tue, 21 Apr 2020 13:54:00 GMT

Public Private Strategies and the Mastercard Center for Inclusive Growth host a conversation on inclusive recovery in US cities.

PPS & AARP: Guidance for Small Business Owners Managing the COVID-19 Pandemic

Thu, 02 Apr 2020 16:21:00 GMT

The coronavirus disease 2019 (COVID-19) pandemic has caused disruption and closures for millions of small businesses. Business owners are trying to keep their businesses financially afloat and meet the needs of their workers whose lives are facing unexpected challenges. The following is some practical guidance for surviving the economic downturn.

The Small Business Owner’s Guide to the CARES Act

Fri, 27 Mar 2020 20:58:00 GMT

The programs and initiatives in the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was just passed by Congress are intended to assist business owners with whatever needs they have right now. When implemented, there will be many new resources available for small businesses, as well as certain non-profits and other employers. This guide provides information about the major programs and initiatives that will soon be available from the Small Business Administration (SBA) to address these needs, as well as some additional tax provisions that are outside the scope of SBA.

You can download the guide HERE.

We're in this together.

Wed, 25 Mar 2020 01:00:00 GMT

After the 2016 election the world shifted dramatically, becoming a further complicated place. While we remain inherently optimistic people, the results of the election fundamentally altered the way in which our country operates. It became evident, fairly quickly that many of the institutions that are crucial to our democracy would face a continued, sustained attack.

Over some wine and cheese, Katie and I discussed how we believed business could play a significant, positive role in society. Even more, we believed small business was a place where we could bring together a diverse group of people to build bridges, forge new partnerships and put forth innovative ideas to spur the economic growth of our communities.

And so, in 2017, Public Private Strategies (PPS) came to life. Our guiding principle is rooted in the importance of bringing together unique partners to collaborate and identify ways in which business takes the lead in creating a more inclusive economy. We couldn’t be more proud of what our team has accomplished in the last three years. However, we could have never imagined something like the coronavirus (COVID-19) outbreak and the truly disruptive situation it has created for all of us.

Having said that, crisis moments create unique opportunities to help those who we care about the most. Our small but mighty team has already jumped into action.

Last Tuesday, PPS convened a distinguished group focused on the likely impact of COVID-19 on small businesses and their employees. Nearly 50 people representing advocacy organizations, financial institutions (including banks, community development financial institutions (CDFIs), and fintech), payments and technology platforms, and philanthropic organizations participated. We were inspired by the response and we hope this opportunity to share information will lead to a more collective and forward thinking response.

PPS is committed to doing its part to help the country, particularly small businesses, through this pandemic as we advocate for solutions that truly give them the resources that not only provide for their immediate needs but support them through recovery and bring about more resilient operations. There is an important role for everyone -- business, government, philanthropy, and other actors to play in this recovery.

In fact, Katie and I penned an op-ed in The Hill that outlines steps lawmakers can take to assist small businesses and workers in weathering the impact of COVID-19. We have also curated a list of resources that have been made available by advocacy groups, technology companies, and federal, state, and local government agencies to help businesses and their workers maintain their physical and economic health during the outbreak.

Even though it's hard to do right now, we are beginning to look ahead. We are ever focused on helping to support the private sector and the government to work collaboratively to find unique ways to help us all through the crisis. As small business owners ourselves, we will take this opportunity to put our efforts into figuring out how we can best support an effort to reimagine Main Street to one that sustains a more inclusive, resilient economy where everyone can thrive.

We believe strongly that we must create an economy that allows more people to share in our great American dream.

To all of our partners --both formal and informal, thank you for continued leadership, support, and friendship. Please do not hesitate to contact us if we can be of assistance in this challenging time.

Sincerely,

Rhett and Katie

Lifting up Small Businesses for National Be Heard Day

Fri, 06 Mar 2020 22:35:00 GMT

Small businesses are the second most trusted institution in the United States, yet all too often policy decisions serve the interests of large corporations. That’s why National Be Heard Day was created and is held annually on March 7, providing an opportunity to amplify small business voices on the policy issues that matter most to them.

One issue we hear about often is that many small business owners and their employees are worried about retirement. In fact, 1 in 3 small business owners have no retirement savings plan. While there are retirement options out there for entrepreneurs and self-employed individuals, wading through the paperwork, investment options and fees alone can be daunting.

Lawmakers at the state and federal level have proposed a novel solution to fill this gap for people without access to retirement savings through an employer. Auto-IRA programs, often also called Work & Save or Secure Choice, are public-private partnerships between the state and private sector to allow employees to save for retirement automatically through simple payroll deductions.

While federal legislation on auto-IRA programs has stalled, states are taking the lead on pushing these projects forward. Indeed, states like Oregon and Illinois have programs in place, and many more like New Mexico, Wisconsin and Pennsylvania are considering their own plans. States with programs are helping workers to easily save for their financial future, and leveling the playing field for small businesses unable to offer their own programs.

If you are a small business owner or solo-entrepreneur, use this year’s Be Heard Day to raise your voice on why you need novel retirement options from your state lawmakers to help you save for your future! Write a letter to the editor or op-ed to your local paper, call your local representative or even show up for a public hearing at your state legislature. Speak out and tell policy leaders that small business concerns need to be met, especially on retirement.

Learn more about Work & Save programs from AARP.

Small businesses are the second most trusted institution in the United States, yet all too often policy decisions serve the interests of large corporations. That’s why National Be Heard Day was created and is held annually on March 7, providing an opportunity to amplify small business voices on the policy issues that matter most to them.

One issue we hear about often is that many small business owners and their employees are worried about retirement. In fact, 1 in 3 small business owners have no retirement savings plan. While there are retirement options out there for entrepreneurs and self-employed individuals, wading through the paperwork, investment options and fees alone can be daunting.

Lawmakers at the state and federal level have proposed a novel solution to fill this gap for people without access to retirement savings through an employer. Auto-IRA programs, often also called Work & Save or Secure Choice, are public-private partnerships between the state and private sector to allow employees to save for retirement automatically through simple payroll deductions.

While federal legislation on auto-IRA programs has stalled, states are taking the lead on pushing these projects forward. Indeed, states like Oregon and Illinois have programs in place, and many more like New Mexico, Wisconsin and Pennsylvania are considering their own plans. States with programs are helping workers to easily save for their financial future, and leveling the playing field for small businesses unable to offer their own programs.

If you are a small business owner or solo-entrepreneur, use this year’s Be Heard Day to raise your voice on why you need novel retirement options from your state lawmakers to help you save for your future! Write a letter to the editor or op-ed to your local paper, call your local representative or even show up for a public hearing at your state legislature. Speak out and tell policy leaders that small business concerns need to be met, especially on retirement.

Learn more about Work & Save programs from AARP.

Working to Bring Retirement Solutions to Maine’s Small Businesses & Their Employees

Fri, 21 Feb 2020 14:36:00 GMT

Public Private Strategies proudly joined AARP Maine for a webinar highlighting retirement savings options for Maine small businesses.

Workers across America are facing a retirement crisis, and Maine is no exception. Indeed, polling from AARP shows that two in three Maine registered voters say they are anxious about saving enough money for retirement, and more than half report feeling behind schedule in saving for retirement. Small businesses and their employees are especially vulnerable - 67% of workers at Maine businesses with fewer than 100 employees do not have access to a retirement plan at work, compared to just 31% of workers at larger businesses.

Maine small business owners treat their employees like family -- they want their employees to have more options to save for retirement, but struggle to offer programs due to the cost, time, and complications involved. Maine voters overwhelmingly agree (86%) that state lawmakers should support legislation that makes it easier for workers to save for retirement.

Maine’s legislature is considering action on this issue by creating a Work and Save program to help Mainers grow the savings they need to take control of their futures and to be prepared for future life needs like health care. The program, known as the Maine Retirement Savings program, would operate like a 529 college savings plan.

Work & Save programs are public-private partnerships between the state and private sector to allow employees to save for retirement automatically through simple payroll deductions. Programs like this are in effect in states like Oregon and Illinois, helping workers to easily save for their financial future.

With the Maine Retirement Savings program, an employee’s contributions are made with an automatic deduction from their paychecks. The accounts are voluntary for employees, and it’s up to each worker to decide if they want to participate and how much they want to put away.

Giving employees a simple way to save for retirement means fewer Mainers will need to rely on public assistance later in life, which saves taxpayer dollars. In fact, Maine taxpayers could save as much as $23 million in the next 10 years by helping people save for their retirement.

Learn more about the Maine Retirement Savings program by watching our webinar with Lori Parham, State Director at AARP Maine.

Briefing on Start Us Up: America's New Business Plan

Wed, 11 Dec 2019 19:31:00 GMT

The Kauffman Foundation and Public Private Strategies were pleased to host a special briefing, Start Us Up: America's New Business Plan, on December 10th. The briefing offered an opportunity to learn about the new Start Us Up coalition and their bipartisan plan for policymakers that focuses on creating new jobs and leveling the playing field for startups and small businesses.

Start Us Up is a diverse group of organizations working together to eliminate barriers to starting new businesses. The group was formed by the Kauffman Foundation in 2019 and is comprised of more than 130 business support organizations who all share a mission of boosting entrepreneurs.

Over the last 20 years, entrepreneurship has stagnated while lawmakers favor policies that benefit larger corporations rather than small businesses. But statistics show that small business owners create more new jobs, and supporting new entrepreneurs is crucial to generating positive economic impact in communities across the country. This is especially true for women, people of color and individuals in rural communities, who disproportionately struggle to access the tools necessary to start their own businesses.

The Start Us Up coalition formed in response to these trends, and is working to spur entrepreneurship through a comprehensive policy plan that advocates for change across federal, state and local levels. America’s New Business Plan lays out what entrepreneurs really need in a simple platform based on four pillars:

Opportunity: A Level Playing Field and Less Red Tape
Funding: Equal Access to the Right Kind of Capital Everywhere
Knowledge: The Know-How to Start a Business
Support: The Ability for All to Take Risks

Examples of recommended policies include reducing and/or streamlining occupational licensing requirements, increasing access to capital, modernizing small business support organizations like Small Business Development Centers (SBDCs), and more. The coalition is now working to spread the ideas put forth in the plan and is seeking opportunities to champion the proposals with policymakers.

The December 10 briefing was one such an opportunity for stakeholders, business owners and other leaders across the community to hear more about both the coalition and America’s New Business Plan. Speakers included Jason Wiens, Policy Director, Entrepreneurship, Kauffman Foundation, and Rhett Buttle, Founder and Principal, Public Private Strategies. They had an important discussion about this new coalition and how business owners can use their voices to make a change at the local, state, and federal levels.

To learn more about the policy plan and Start Us Up coalition, please watch the webinar recording or visit https://www.startusupnow.org/ .

Promoting Inclusive Growth in Underserved Communities

Wed, 11 Dec 2019 15:51:00 GMT

The Mastercard Center for Inclusive Growth and Public Private Strategies hosted a webinar to provide an inside look and demonstration of Mastercard's new Inclusive Growth Score , a web-based service that enables users to learn about measures of inclusion and prosperity within Opportunity Zones across the United States. Featured Speakers included Arturo Franco, Vice President of Data & Insights at the Mastercard Center for Inclusive Growth and Mayor Jane Campbell, Former Mayor of Cleveland, Ohio and Senior Advisor at Public Private Strategies.

Communities across the United States have been mobilizing around Opportunity Zones, economically distressed communities where new investments, under certain conditions, may be eligible for preferential tax treatment. To ensure that the investments benefit underserved communities, local leaders have called for better data and metrics to track progress and guide investments in Opportunity Zones.

The Mastercard Center for Inclusive Growth has been working to equip city and community leaders with new tools and insights to ensure communities can adapt and thrive in a changing economy.

The Mastercard Center for Inclusive Growth's recently launched Inclusive Growth Toolkit is a first step in answering that call. It provides local leaders with timely data-driven insights on the current state of and potential for inclusive growth in their communities to help them unlock the potential of neighborhoods.

Small Business, Big Impact: Philanthropy’s Untapped Opportunity to Advance Health and Equity

Wed, 11 Dec 2019 15:51:00 GMT

Introduction

Leaders in health philanthropy increasingly recognize the role of business in advancing their objectives. To date, the focus of most efforts to engage business has been primarily on large companies. By contrast, the role of small business in creating healthy, equitable communities has generally not been explored.

This is not entirely surprising for several reasons:

1) large businesses present scale opportunities out of the gate. For example, a single corporate policy change at Walmart can affect more than two million employees;

2) large corporations exert considerable influence on their peers and the public. When large companies act, their efforts tend to be newsworthy and cause ripple effects across their peers and society at large; and

3) large, publicly-traded companies are relatively transparent and offer a source of considerable data that can be used to make the case for public health collaboration and measure progress toward a goal.

Yet small businesses are an untapped resource and could be a critical partner in creating opportunities for everyone to live a healthy life. Small business influences the financial lives of roughly 30% of the U.S. population: Nearly 100 million people generate their livelihoods from small businesses as either owners or employees. These businesses are in every state in the country, representing more than 90% of all businesses in every state. Their voices are trusted at a time when confidence in government, media and other institutions is generally declining.

Small business leaders are largely untapped partners in advancing health for communities and their residents and in advancing health equity. Small business create jobs and build wealth—and especially in low-wealth communities—and the small business startup rate is highest in communities of color. Building wealth where opportunities have been historically limited is essential for advancing health equity. Moreover, as the second most trusted institution in the United States, a failure to engage small business leaders as partners and ambassadors in efforts to advance health and health equity is a missed opportunity.

Effectively channeling the potential of this critical segment of businesses will require effort and investment to address the unique characteristics that distinguish small business from large employers. For starters, the universe of small business is extremely fragmented, especially when compared to large corporations. In addition, unlike large businesses that can assign entire teams to special projects, small businesses are generally more strapped for time and resources. That said, it’s nearly impossible to address health equity and reach deep into communities without effectively engaging small business.

In this report, we start by making the case for engaging small business in advancing health equity, or what the Robert Wood Johnson Foundation (RWJF) has framed effectively as a “Culture of Health.” Then we share seven ways to engage small business in advancing healthy, equitable communities. Finally, we close with some recommendations to move forward including 1) the need for thoughtful investment in infrastructure to support engagement with small business; 2) opportunities for coordination among foundations that focus on a range of issue areas including health, community economic development, entrepreneurship, and racial equity; and 3) the potential for collaboration across sectors to ensure that public, private, and social sector actors with a vested interest in small business and healthy communities can contribute to advancing their critical shared objectives.

What is a “Culture of Health”

A “Culture of Health” represents the vision of The Robert Wood Johnson Foundation (RWJF) to make health a national priority, valued and advanced by collaborators from all sectors. For RWJF, building a Culture of Health means working together to develop scalable solutions and take targeted action in communities toward a shared goal of better health. To mobilize its vision, the Foundation created an Action Framework to drive measurable, sustainable progress and improve the health and well-being of all people.

The Case for Engaging Small Business

Small business owners generate wealth and create jobs in every community across the country, and are generally viewed as leaders in their communities. Engaging with small business allows you to 1) advance health equity and 2) inform priorities and promote policies.

Advance Health Equity

Building wealth and income is critical for improving health equity. Substantial evidence shows that both wealth and income influence the health of individuals, and inequities in these areas have repeatedly been linked with poorer average health outcomes at the national level. Strategies to advance health equity should take into account the critical role of small business for both.

Somewhat surprisingly, 43% of small businesses in the United States are located in low-wealth communities, which also suggests that these businesses are critical sources of jobs and income in these areas. Building wealth where opportunities have been historically limited is essential to advance health equity. Small businesses compete in virtually every industry sector , with the highest concentration in services, construction, and retail trade.

Business owners themselves represent a cross-section of the U.S. population. The majority of business owners today are white, but the growth rate of business starts is highest among black Americans and Latino(a) business owners. More men own businesses than women, but about one-quarter of businesses are women-owned and the share is growing rapidly, especially among black and Latina women. Boomers and millennials also both represent sizable segments of small business owners, with a significant portion of young people considering starting a business.

Business ownership is also a driver of wealth creation. On average, business-owning households hold more than twice the wealth of their wage-earning peers. The wealth-creation impact is more pronounced for business owners of color. Black business owners are, on average, more than seven times wealthier than their wage-earning peers. Similarly, Latino(a) business owners hold roughly four times as much wealth as non-business owners. Business ownership is also a proven path to addressing the racial wealth gap: while on average white adults hold 13 times the net assets of their black peers, this racial wealth gap narrows by more than 75% to a three-fold differential when comparing business owners by race.

As these facts suggest, small business owners and employees represent a broad cross-section of American society who depend on and contribute directly and indirectly to health equity and healthy communities. The performance of small business contributes to healthy, equitable communities through the assets, income, and jobs they create. Small businesses can lead the way to advancing healthy communities when the practices they adopt shape the lives of their families and employees.

Inform Priorities & Promote Policies

Small business is the second most trusted institution in the United States and is trusted far more than large business. This deep sense of trust creates an imperative both to understand authentic perspectives of small business owners and to harness that credibility to support policies that promote health equity.

Many of the stakeholders we interviewed, especially those who focus their work on advocacy, referred to the strong “moral authority” small business leaders convey on most issues. This was true for issues closely aligned with the direct interests of small business as well as broader issues of equity and inclusion, where the “voice of small business” contributed to policy momentum.

Knowing what is on the minds of small business owners can help identify priorities in a specific place or across the country. Additionally, support from small business can strengthen the case for policy proposals that advance healthy communities. Yet the sheer number of small businesses creates an imperative to capture enough inputs so that perspectives are representative and sample sizes are robust. However, reaching business owners directly can be challenging.

Small business owners are stretched thin and pressed for time. As one business owner shared, “You hustle and grind and sacrifice everything else in the name of success.” More than one owner we talked to relayed the quip that in a small business the CEO is the “Chief Everything Officer.” Business owners typically choose where and how to engage carefully, with an eye toward prioritizing activities that advance the business and address their pain points.

7 Ways to Engage Small Business for Health and Equity

Small businesses advance healthy communities and health equity by virtue of the contributions they make to the economic and social fabric of the places they serve. At the same time, this highly trusted segment of businesses can provide valuable insights into the needs and priorities of communities, and can serve as an important advocate for policy. In this section, we outline seven ways to engage small business. These themes are derived from the ways that small business contributes to healthy communities and insights from interviews with almost 100 practitioners and thought-leaders across the country.

Considerations Moving Forward

By virtue of their number, distribution, and trusted position, small businesses can lead the way to advancing healthy communities and health equity. However, absent purposeful action, the opportunity to harness their power will be missed. The seven themes outlined above present opportunities to rethink the current engagement model with “business” to include small business. At the same time, developing ideas within these themes presents the space to consider collaborations that move beyond the “usual suspects” to include some nontraditional partners. Our work has also highlighted the need for infrastructure investments to listen to and engage small business effectively and efficiently so that feedback loops are strengthened, data-driven insights are available, and the advocacy landscape is less purely partisan.

Finally, we see significant opportunities for “cross-sectoral” funding collaboratives to amplify impact of traditional community development. We observe many foundations engaged but from different vantage points. Getting to high-impact projects likely requires dialogue to “translate” language into common understanding, develop a shared frame, and identify shared priorities.

This report and the extensive research that informed it shows that small businesses are critical to creating healthy communities, but they continue to be an untapped resource. We hope this report helps lay the foundation for a better understanding about the leadership role that small business plays in our economy and society. This work should spark a dialogue among public health leaders (and others) to expand collaboration with “business” to include small business. The report frames themes and ideas that can strengthen meaningful engagement with small business—a vast and diverse constituency—and outlined opportunities for interested investors and funders who seek to advance health equity to include small business in their work.

Small business contributes to economic growth and plays a significant role in communities across the country, employing more than a quarter of the population, driving wealth creation in communities, and holding a spot as the second most trusted institution in the country. As such, small business can play a critical role in creating healthier and more equitable communities.

Robert Wood Johnson Foundation: Culture of Health Blog

Mon, 25 Nov 2019 18:07:00 GMT

Small Business, Big Impact: The Untapped Opportunity to Advance Health and Equity

New report shows that small businesses create jobs and wealth and are imperative to healthy, thriving and equitable communities. Small businesses represent tremendous untapped potential to promote health equity and create opportunities for everyone to live healthier lives.

Grantmakers in Health: Views from the Field

Fri, 15 Nov 2019 17:47:00 GMT

Small Business: Philanthropy's Untapped Opportunity to Advance Health and Equity

Over the last year, Public Private Strategies conducted research funded by the Robert Wood Johnson Foundation to better understand opportunities for philanthropy to engage small business in advancing a “Culture of Health” and to uncover ways to effectively and efficiently engage small business. Grantmakers in Health featured this research in their November/December bulletin to further explore the important role of small business in creating healthy, equitable communities.

Read the article

Asset Funders Network: Investing in Small Business Leaders to Promote Health and Wealth

Thu, 14 Nov 2019 18:00:00 GMT

By: Deborah Bae, the Robert Wood Johnson Foundation, Shuma Panse, the Robert Wood Johnson Foundation, & Rhett Buttle, Public Private Strategies

Increasingly, research shows that wealth is associated with improved health outcomes across a variety of indicators. People with more assets live longer, have lower rates of chronic disease and have better mental health. So it would make sense for funders and philanthropic actors focused on improving health to be mindful of how they can also seek to increase wealth. Indeed, foundations like the Robert Wood Johnson Foundation have begun to incorporate more of a focus on financial security into their efforts to promote advance health and equity. Yet, one critical constituency has traditionally been overlooked by those who work to improve health and wealth outcomes across the country despite their strong link to wealth, especially for communities of color. That constituency is small business owners.

Small Business Owners Are Desperate for Health Care Relief

Thu, 07 Nov 2019 18:25:00 GMT

By Anne Zimmerman

This post originally appeared on Inside Sources.

I’ve heard a lot about the problems with our health care system during the Democratic primaries. And rightfully so. It’s alarming that after 10 years of increasing coverage, the rate of uninsured Americans rose by 2 million in 2018. What I have not heard a lot about, however, is the plight of small businesses struggling with ever-increasing health care costs.

I would think someone running for president would be interested to learn, as a recent poll by Public Private Strategies shows, that small business owners are so desperate for relief on health care costs that they will embrace policy ideas from across the political spectrum without regard to ideology.

Perhaps it’s not news that health insurance is an expensive benefit for small business owners to provide. But it is noteworthy when small business owners — the people who employ half the private sector — say the cost of health care is still their No. 1 problem.

Read the rest of this post on Inside Sources

Time to Get Real About Small Business Health Care Costs

Tue, 08 Oct 2019 17:20:00 GMT

Rhett Buttle

This post originally appeared on Morning Consult.

While health care is a heated topic in the 2020 election and is sure to remain a focus throughout the campaign, the viewpoint and needs of small business owners and their employees are getting lost in the noise.

New national research from Public Private Strategies of 500 small- and medium-sized businesses sheds light on small business owners’ perspectives on their health care costs. The results are clear: The cost of providing health care to employees is the biggest problem small businesses face, and it’s a major issue for all types of businesses — newer, older, smaller and larger.

Read the rest of the post on Morning Consult

Opportunity Zone & Community Development Advisor

Wed, 02 Oct 2019 14:06:00 GMT

Public Private Strategies (PPS)

communications@publicprivatestrategies.com

New Research: Small-Business Owners’ Views on Health Coverage and Costs

Tue, 10 Sep 2019 05:00:00 GMT

The weight of health coverage and costs threatens the competitiveness of small businesses. To better understand employers’ perspectives on health care costs and to develop a targeted strategy for engaging and mobilizing to drive down costs and improve health outcomes, Public Private Strategies with support from Commonwealth Fund conducted a three-pronged research project featuring key informant interviews, focus groups, and a nationwide survey.

We found despite a healthy economic period, rising health care costs represent a major burden for small-business owners. As a result, most are taking steps to cut costs and would look favorably on policy changes that would help curb the cost of providing health care coverage to employees. Their preferences are not ideological; policy prescriptions across the spectrum find favor. There is significant interest in banding together with other business owners to advocate for a different approach to health care.

Can This Law Be Saved? How Philanthropy Can Help Opportunity Zones Work as Intended

Thu, 05 Sep 2019 00:00:00 GMT

It seems the road to OZ may not be paved with good intentions. Media has begun sounding the alarm about the Investing in Opportunity Act, offering a bevy of examples of legislation designed to benefit low-income communities instead advancing gentrification, and privileging wealthy real estate investors.

The law didn’t get much attention when it was slipped into the 2017 Tax Cuts and Jobs Act, incentivizing private investment in qualified Opportunity Zones—designated areas in some of the nation’s most distressed communities—by offsetting capital gains. The IRS, which was handed the oversight reins by the U.S. Treasury, characterizes OZs as a tool “designed to spur economic development and job creation in distressed communities.”

But the act was raced into law before guardrails were in place to ensure that it works as intended. As a result, elite investors have discovered a tax shelter complete with rooftop pools and yoga lawns. Developers in downtown Portland, Oregon, are raising millions to build luxury condos anchored by a Ritz Carlton. SkyBridge Capital is breaking ground on a swanky hotel in New Orleans’ already hot Warehouse District. And OZ benefits are helping to raise a 46-floor tower in a Houston neighborhood that was already primed for gentrification. Besides its shiny exterior, building amenities include poolside cabanas and daybeds.

It’s too soon to call the legislation a failure. Financing naturally flows to projects with the lowest risks and highest returns. But absent legislation that seems a least an administration away, the pressure on philanthropy to ensure zones work as intended has just been raised a level.

As we’ve reported, some foundations—most notably Rockefeller and Kresge—are on the case, looking to realize the promise of a flawed law by providing technical assistance to cities with OZs in distressed areas, as well as backing oversight and reporting efforts. But much more needs to be done, and many additional foundations need to see that they have a stake in how the law is applied.

Public Private Strategies (PPS), a D.C.-based bipartisan group that creates opportunities between the public and private sectors, offers six concrete ways for philanthropy to step-up:

Shaping the rules of the game: PPS thinks philanthropy should put its collective weight behind influencing IRS guidelines and guiding legislation. It also recommends boosting resources for local leaders by producing data, metrics and case studies to attract investments. The Mastercard Center for Inclusive Growth has launched one such initiative, partnering with Accelerator for America to provide data that will help city leaders prove the investment value of their zones and make the best possible cases for achieving their community’s long-term needs.

Leveling the playing field: PPS considers philanthropy a natural partner for helping distressed communities attract investors and get “a seat at the table.” The Rockefeller Foundation has moved on that, with a five-city, $5.5 million Opportunity Zone Community Capacity Building initiative that embeds a local officer to guide investments, creating an easy environment for transaction negotiation. PPS Senior Advisor Tammy Halevy stressed the importance of supporting zones in rural and suburban locations, where on-the-ground resources are few and far between, prompting roll-ups and clusters. Halevy says the suburban sector needs especially careful thought due to complicated issues like gentrification and the consequences of urban flight.

Incentivizing investor behavior: Capital follows the path of least resistance, so philanthropy must help create a standardized impact reporting environment to effectively integrate social returns. That work is also underway. The Beeck Center for Social Impact + Innovation at Georgetown and the U.S. Impact Investing Alliance developed a reporting framework that established guiding principles, from community engagement and transparency to measurement. The trick now is getting investors to voluntarily adopt them.

Creating investable opportunities: Philanthropy can help communities create a pipeline of opportunities that meet both investor and community needs, develop model agreements for using zones as an investment tool—and make upfront investments to de-risk transactions. The Kresge Foundation’s been an early leader there. Before the IRS even issued guidelines, it began working on financial and social covenants that prevent displacement, prioritize the development of affordable housing units, set requirements creating living-wage jobs, and prohibit “non-productive” investments in things like self-storage facilities. Then it backed two funds to the tune of $22 million, de-risking the transaction in exchange for the manager’s voluntary adoption of the covenants.

Helping local residents build wealth: For zones to succeed, growth needs to stay local. New investments are bound to change the tenor of neighborhoods, and can lead to displacement and rising business challenges, especially for mom and pop businesses. PPS says philanthropy can influence project sponsors to commit to things like hiring locally, and seeding and sharing successful transactions.

Accelerating progress through knowledge sharing: To maximize resources, PPS recommends creating forums to share learnings across stakeholder groups for common challenges, and seeding “open source” solutions. Creating resource communications and sponsoring convenings are a natural fit for philanthropy, which intersects with society on a number of levels.

Opportunity Zones are here to stay—for now, anyway. The jury may still be out on how they’ll land, but one thing is clear: Unlocking trillions in capital for underserved communities will take the steady, concerted efforts of all sectors of philanthropy.

Originally published in Inside Philanthropy on September 5, 2019.

New Corporate Purpose Equals New Opportunity

Tue, 03 Sep 2019 19:42:00 GMT

The Business Roundtable, an influential group of CEOs of America’s most powerful corporations, made headlines recently by declaring they would no longer define the purpose of a corporation as solely focused on generating returns for shareholders. Instead, they declared that the purpose of a corporation should include the interests of a broader group of stakeholders they serve, including customers, employees, suppliers, and local communities. This update to corporate philosophy is a significant and laudable step forward. The role of corporations in creating change shouldn’t be underestimated — from providing benefits like paid family leave to taking steps to address climate change, we aren’t going to solve our nation’s problems without businesses embracing their immense power to do good. But this proclamation is a starting point, not the end goal. For this announcement to be more than words on a page, business leaders should follow up with meaningful action. Here are three things that need to happen next: First, companies need to show this was more than just a publicity stunt. Action should also extend beyond corporate philanthropy, where many companies are already engaged in meaningful work. Companies need to develop and follow through on plans to change their business practices to help create more sustainable, healthier communities. Many corporations are ahead of the game, like Salesforce, which spent $6 million to close their gender pay gap once they realized female employees were making less. Another great example is Starbucks’s pledge to hire 25,000 veterans by 2025. True corporate citizenship calls for companies to incorporate better business practices into every aspect of their operations. Second, corporations need to embrace the idea that America’s workforce is our most valuable asset. When workers feel supported and empowered at work and at home, they are happier, more productive employees. This requires a holistic approach to employment, recognizing that for employees to be fully engaged, they need to know that they have good health coverage, that their wages allow them to cover an unexpected expense, and that they have the ability, if needed, to take time off to care for a loved one. This is especially critical as we face an oncoming caregiving crisis as boomers retire and more employees need time off to care for aging parents. A holistic approach also requires empowering employees with training that will help them transition through the changing nature of work. Finally, small businesses need to be a part of the conversation. America’s small businesses are responsible for creating nearly half of private-sector jobs, and the wealth they create is more likely to stay in their local community. Small business owners have long known that treating employees well and building up their local community makes good business sense. Despite their outsize impact, small businesses and entrepreneurs have been struggling to compete in an economy that has been designed to the benefit of the biggest largest players. If large corporations are committed to pursuing and enabling business practices that drive change for entire communities, they need to endorse practices that also work for small business owners and support entrepreneurship. This means working with diverse small businesses as suppliers and partners or supporting public policy solutions that enable entrepreneurs to compete for top talent or global market access. A leading example is JP Morgan Chase’s Entrepreneurs of Color Fund, a $150 million effort to expand access to capital for women, minority, and veteran-owned companies. When large companies invest in small businesses, small businesses will invest in their communities. Businesses have a powerful role to play in helping us build the healthy, sustainable communities of the future we all want. But it’s also critical we recognize that business can’t, and shouldn’t, solve all of our problems alone. We also need efficient and responsible government institutions to help. Currently, the role of the government is being maligned and undermined as policies like environmental regulations, protection for student loan borrowers and expansion of health care coverage are walked back. Forward-thinking business leaders can change this narrative by making the business case for good governance, smart regulation and public-private partnerships. Our nation is facing big challenges, and our economy is changing rapidly. Solutions require partnership from both public and private actors. The change announced by the Business Roundtable is a needed step in the right direction. But now it’s time to turn words on a page into meaningful action.

Originally posted on Inside Sources here

America’s Workforce Has a Caregiving Crisis

Thu, 16 May 2019 16:19:00 GMT

This month we celebrated National Small Business Week, which highlights the important role that small businesses play in our economy. Understanding the importance of small businesses allows for us to also identify and tackle the challenges they face as business owners and employers. There’s one growing problem that we aren’t talking about enough: the emerging caregiving crisis and how small business owners will have to approach it.

Research finds that the vast majority of people in the workforce at some point have caregiving responsibilities for family and loved ones. Of those, approximately 32 percent eventually have to leave their jobs because of an inability to balance work and caregiving, and over 80 percent reported not being able to do their best work. For small business owners, their employees’ struggles carry hidden costs in turnover, rehiring, absenteeism and lower productivity.

That doesn’t mean Main Street is meeting the problem with ambivalence or a lack of empathy. On the contrary, a newly released AARP poll of small business owners shows that nearly all surveyed (94 percent) believe that it’s fair and right to give their employees the time they need to care for their families, and that the issue isn’t just about their personnel — it’s also personal. A whopping 70 percent of small business owners said they have either personally cared for a loved one or have had employees take time off to care for their loved ones. And more than half are willing to pay for classes or other education on how to handle the issue in their business.

Yet while the numbers show that small business owners care about the issue, few say they have a written policy for caregiving. As we know, small business owners are busy people. Most owners report foregoing formalized caregiving solutions in their business, instead opting to handle it on a case-by-case basis. But an ad hoc approach can cost small businesses time and money, and doesn’t sustainably address a significant issue in the workforce of the future.

The U.S. population is aging, and caregiving is a workplace issue that will only grow in importance in the years to come as people of all ages need more time off to care for loved ones. In the race to keep up, small businesses should consider offering caregiving-friendly solutions, like flex-work and telecommuting, to remain competitive with larger employers. Some of these straightforward solutions can be simple to implement and quickly create a strong caregiving culture that helps with retaining and recruiting quality talent.

But time is of the essence. Right now is the time for all employers, especially small businesses, to begin to prepare for the changing workforce by thinking about how they can position themselves. The future of work requires employers that understand the benefits of a caregiving-friendly work environment. Small business will do as they always do — be flexible, entrepreneurial and adapt. The time to start is now.

Rhett Buttle is an expert on policy issues that impact the employer community. He is the founder of Public Private Strategies and Next Gen Chamber of Commerce, and the Executive Director of the Small Business Roundtable. Rhett previously served as a private sector advisor on the Obama Administration’s White House Business Council.

This piece originally appeared in Morning Consult .

How Philanthropy Can Catalyze Private Investment in Opportunity Zones

Thu, 14 Mar 2019 01:03:00 GMT

The U.S. Department of the Treasury expects Opportunity Zones to unlock well over $100 billion in private investment in low-wealth communities across the United States. The tax incentive, which became law as part of the 2017 Tax Cuts and Jobs Act, seeks to encourage patient capital investments in more than eighty-seven hundred designated census tracts across the country by permitting investors to reinvest capital gains in designated census tracts in exchange for tax benefits. Opportunity Zones represent the first time federal tax policy has sought to tap unrealized capital gains to advance economic and community development. Proponents believe the incentive will help transform low-wealth communities, while skeptics have doubts that funds will flow to the people and places most in need — and, even if they do, that the ensuing transformation will have a positive impact on longtime residents and small businesses. Against this backdrop, philanthropy should step up and help shape the Opportunity Zone landscape so that benefits of the legislation also accrue to longtime residents and businesses. Here are six ways philanthropy can help: 1. Shape the rules of the game. Philanthropy can influence IRS guidelines for Opportunity Zones — and, if necessary, follow-on legislation — to ensure that the incentive is implemented in a manner that reflects the interests of communities and the intent of the program. For some foundations, this may include support for developing and tracking metrics, stakeholder interviews to uncover opportunities and issues, and/or deep-dive case studies of specific transactions. The data from these activities can then be used to generate valuable tweaks to the design of the program. As always, data-driven insights will be critical to making the case for modifying, fine-tuning, or extending the incentive. 2. Level the playing field. Foundations are well suited to ensure that communities are poised to attract investor interest and have a seat at the table as Opportunity Zone transactions are negotiated. Organizations such as Accelerator for America are already working with cities across the country to create investment prospectuses, while others such as the Governance Project are working with municipal leadership to develop business cases and strategies for priority projects in communities such as Louisville and San Jose. There is far more that can and should be done, however, and the unique features of rural Opportunity Zones must also be accounted for so that those communities are not left behind. 3. Incentivize investor behavior. Capital is likely to follow the path of least resistance. This does not imply that social returns cannot be integrated effectively into Opportunity Zone transactions. Rather, it is incumbent on philanthropy to help create an environment where community benefits, standardized impact reporting, and related activities become "no-brainers" for investors. The Opportunity Zones Reporting Framework, a voluntary guideline recently introduced by the U.S. Impact Investing Alliance and the Beeck Center for Social Impact and Innovation at Georgetown University, is an important initiative aimed at defining best practices for investors and fund managers looking to deploy capital in Opportunity Zones. In addition to support for emerging norms and guidelines, we see a few additional ways to create incentives for investors to focus on social returns. Philanthropy can partner with impact-oriented investors to demonstrate what is possible in real-world transactions. A few carefully selected and constructed demonstration deals could begin to unlock practices across similar asset classes in different places. Philanthropy could also support a high-profile annual award for the highest-impact transactions, as well as the equivalent of a "Good Housekeeping Seal of Approval" for Opportunity Zone transactions and funds. 4. Create investable opportunities. Now that the Opportunity Zone incentive exists, the challenge is to develop a robust pipeline of transactions that meet both the needs of communities and the return expectations of investors. To that end, philanthropy can help by identify projects for investment and provide the upfront investment needed to take an idea to the project proposal stage. Once a deal has been conceptualized, philanthropy can play a role in reducing risk exposure for investors so that deals with the greatest potential to drive positive change proceed. In addition, because Opportunity Zones are a new tool, template agreements and other documentation needed to enable transactions do not yet exist. Philanthropy can help there by investing in efforts to establish a collection of model agreements that could be shared across locations and projects. Such an investment would reduce transaction costs and help establish norms and expectations with respect to social impact. 5. Build wealth for local residents. It's inevitable that new investment dollars will change Opportunity Zone neighborhoods. As such, it's important to minimize displacement risks and create upside for residents, including small business owners, by better meeting their current needs and creating mechanisms for wealth creation throughout the process, including at exit. This could include clauses that commit project sponsors to hiring from within the community, financial upside for local organizations, and/or clauses for business owners to buy back their equity at a pre-agreed price. To do this effectively, philanthropy should engage with investors and local leaders to seed and share demonstration transactions that show the way. 6. Accelerate progress via coordination and knowledge sharing. Ultimately, the strength of the Opportunity Zone program is that it is inherently local. While each of the designated census tracts is unique, there are common challenges and patterns across designated zones. Philanthropy can help accelerate results and improve the allocation of scarce resources by supporting coordination and communication within and across markets. These activities might include seeding "open-source" solutions, sharing learnings across stakeholder groups, and promoting coordination among leading actors across the country. While informal coordination and information sharing happens today, thoughtful investments by philanthropy could truly super-charge impact. It seems as though Opportunity Zones have captivated all of us working to build more equitable communities and a more inclusive economy for all Americans. Though the debate about the incentive's long-term impact will continue, the reality is that Opportunity Zones are here to stay. Whether you are an optimist or skeptic, now is the time for philanthropy to step up and demonstrate how this new source of private capital can shape the evolving market landscape and positively impact communities in need of a boost. Rhett Buttle is founder of Public Private Strategies (PPS) and a former Obama administration official. Tammy Halevy is a senior advisor with PPS and an expert in innovative community development finance with a focus on small business. Jane Campbell is a senior advisor with PPS and the former mayor of Cleveland. The PPS team is advising philanthropies on how to best engage with Opportunity Zones. This piece originally ran in the Philanthropy News Digest on March 13, 2019

Business Leader Update : 2020 Census & Citizenship

Fri, 30 Mar 2018 16:17:00 GMT

Recently, I wrote an op-ed about the importance of the Census to the business community. Since then, the Census seems to be everywhere in the news because of a recent controversial decision by the Trump Administration. Below, I provide a quick overview of what is the issue, the different perspectives and what it may mean for the business community. What is the “citizenship question” on the census that has been in the spotlight this week? On March 26th, Secretary of Commerce, Wilbur Ross, whose agency oversees the Census Bureau, granted a request from the Department of Justice to include a question on the 2020 census which asks respondents to indicate if they are U.S. citizens or not. The explanation given by the Department of Justice for the request, was that this data is needed to better enforce protections for minorities under the Voting Rights Act. However, this has generally been a political issue for some Republicans and is subject to debate as you will read below. What does the Constitution say? In reference to who shall be included in the census, the Constitution’s 14th Amendment, Section 2 states: “Representatives shall be apportioned among the several States according to their respective numbers, counting the whole number of persons in each State, excluding Indians not taxed.” The Supreme Court has also ruled on the importance of an inclusive count, based on total population, as it “promotes equitable and effective representation.” What do supporters of the citizenship question say? Supporters of the question, such as Sen. Marco Rubio (FL-R), see no harm in adding the question, and view it as a simple data-gathering exercise, along with the scores of other questions that are included in the census. Others say it is simply important for a country to know how many citizens it has. They also point out that the question remains optional. What do those opposed to the citizenship question say? The concerns range from poor data integrity resulting from an untested question, to the chilling effect the question will have on minority participation, resulting in a dramatic undercount in many communities - particularly those with large immigrant populations. Vanita Gupta, president of The Leadership Conference on Civil and Human Rights, said: “Adding this question will result in a bad census – deeply flawed population data that will skew public and private sector decisions to ensure equal representation, allocate government resources, and anticipate economic growth opportunities – for the next 10 years,″ Why is it controversial? Civil rights groups, election law experts, and many state and local elected officials nationwide strongly disagree with the premise of the question, the manner in which it is being introduced into the process, and the effect they project it will have on participation rates. They argue that the question is unnecessary, as there are other methods that are used to assess citizenship numbers. They also argue that the Constitution references counting all people living in each state - not just citizens. The main reasons that the question is receiving strong opposition is that it is being introduced, untested, at the very last minute, and will have a chilling effect on total participation rates, discouraging minorities, immigrants, and other vulnerable populations from responding, for fear of being targeted by immigration authorities or law enforcement agencies. Here’s why it matters for business: The census is a vital tool for business development and growth. Businesses use data derived from the census and the American Community Survey to measure the size of a market for their services. It helps enterprises both large and small make informed decisions, such as where to open new facilities or expand existing ones, how to invest in efficient marketing and merchandising strategies, forecast demand, growth and staffing needs. Any factor that has the potential to suppress participation and result in an undercount, presents a danger to our country’s commercial interests and global competitiveness. For American business, the census is not about citizenship - it's about an accurate count. In business, every person counts. It is about understanding the size of our market, our consumer base, and the usage of products, services, and infrastructures. Everyone from supermarket chains to mobile phone companies need to know how many people they will serve in the next decade, and where those customers are located. Anything that skews those numbers does a great disservice to American business. For the first time in the 2020 Census, there will be an option to fill out the questionnaire online. This will be a welcome boost to participation rates - but adding untested and politically-charged questions to the census at this stage in the game will unfortunately, risk negative unintended consequences that will cost far more than the value gained by any question on citizenship. Devere Kutscher is a Principal at Public Private Strategies. You can contact him at devere@publicprivatestrategies.com .

Business And The 2020 Census

Wed, 07 Mar 2018 18:13:00 GMT

Comcast Newsmakers Interview with Public Private Strategies

The United States Census Bureau provides data about the nation’s people and economy. While that data is used by our government for planning and redistricting purposes, there are private sector applications as well – especially for businesses. DeVere Kutscher, Principal with Public Private Strategies discusses the importance of census accuracy and its effect on businesses making informed decisions.

Rhett Buttle Joins Aspen Financial Security Program

Sun, 19 Nov 2017 16:23:00 GMT

NOVEMBER 16, 2017 • FINANCIAL SECURITY PROGRAM

The Aspen Financial Security Program (FSP) announced this week that Rhett Buttle will be joining FSP as a Senior Fellow. Rhett will focus his efforts on advancing the innovative Reconnecting Work and Wealth Initiative – a cutting edge effort at the Aspen Institute led by FSP and the Economic Opportunities Program that engages a broad set of stakeholders in an ambitious re-visioning of the ways that 21st Century labor and financial markets can deliver inclusive growth and shared prosperity. Currently, Rhett is the Founder and Principal of Public Private Strategies. Before that, he served as Director of Business Engagement for Hillary for America, Director of Private Sector Engagement for the US Department of Health and Human Services, a member of The White House Business Council, and President of a national business association. In anticipation of Rhett joining the team, he sat down with Ida Rademacher, vice president at the Aspen Institute, and executive director of the Aspen Institute Financial Security Program . Ida Rademacher: We’re energized here at Aspen to have you join us as a Senior Fellow to advance the Reconnecting Work and Wealth Initiative. What attracted you to this role? Rhett: In my opinion, the question of how we reconnect work and wealth and do so in a way that creates economic security for all Americans is quite possibly the most important question of our lifetime. In a day where some argue that the social contract of America is broken, it’s critical that we find new ways to make sure all Americans have access to opportunity. To accomplish this effectively, we need to bring together diverse leaders to seek solutions to these critical questions. The Aspen Institute provides the opportunity to do just that, and I can’t think of a better place to do this work. This conversation has already been started through the Financial Security Program and Economic Opportunity Program , but I look forward to working with colleagues to take it to the next level. Can you share some of what you are planning to do as a Senior Fellow? During my time as a Senior Fellow, I will focus my efforts on advancing the innovative Reconnecting Work and Wealth Initiative – a cutting edge effort that engages several of the Institute’s largest policy programs and their stakeholder networks in an ambitious re-visioning of the ways that 21st Century labor and financial markets can deliver inclusive growth and shared prosperity. As part of this effort, I hope my work will help to build out even more robust cross program collaboration at the Aspen Institute. Many of Aspen’s current policy programs address tenants of this important issue and are seeking solutions. Finding a way to create even more synergies among these solution-oriented programs will help us get to some answers more quickly. In addition, I hope to engage and activate a wider range of private sector leaders who care deeply about issues of economic opportunity, empowerment, and inclusion. Seeking good public policy will always be important and should be on the table. However, not every solution can be achieved by public policy. The private sector in America is stepping up in a new way and we must find the right ways to harness that. In addition to working with the corporate community, I hope we can bring new small employer voices to the table. Beyond the private sector, I hope we can bring an array of new actors into the conversation to make sure we are benefiting from the most innovative ideas. Last, I hope the work we are doing lays the foundation for a strong program that not only builds toward a tremendous Economic Security Summit this summer, but that helps re-shape the national dialogue on these critical issues. What do you think it will take to make economic security a national policy priority that compels action? Exactly what we are doing. At my core, I am an organizer. While most of my professional career has been spent organizing business, I know the power of bringing a diverse set of people together around a common cause. When you do this, you create true collective impact. I have been fortunate enough to see the power of Aspen’s work first hand, and I know that as we build this Initiative and bring the right players to the table, we will be an instrumental player in creating the space for both policy and market change. To learn more, see our recent press release .

Rhett Buttle launches new firm Public Private Strategies & Joins the Aspen Institute as Senior Fellow

Thu, 16 Nov 2017 04:21:00 GMT

FOR IMMEDIATE RELEASE November 16, 2017 communications@publicprivatestrategies.com
Washington, D.C.—Rhett Buttle announced today that he will launch Public Private Strategies , a consulting firm that will focus on bringing business voices to the policy table on a wide variety of policy issues. In addition, Rhett will also will join the Aspen Institute as a senior fellow in the Financial Security Program . His work at The Aspen Institute will focus on economic security and issues of reconnecting work and wealth.
Katie Wonnenberg will be joining Rhett as principal and counselor to the firm, making the two a bipartisan duo. In her role, Katie will leverage her years of expertise in advising self-employed and small business owners in key areas, which will ensure Public Private Strategies is set up for success from day one. Katie will also continue to represent and serve the National Association for the Self Employed (NASE) as vice president of government relations and public affairs. Together, Rhett and Katie have decades of experience organizing economic and business leaders.
“For nearly seven years, I have touted how important and rewarding the self-employment experience is and can be for millions of Americans. I am thrilled to support Rhett and Public Private Strategies in this exciting endeavour,” stated Katie Wonnenberg.
Rhett joins both The Aspen Institute and Public Private Strategies after a trip around the world where he and his partner saw all seven (wo)man made Wonders of the World. Before his wanderlust days, he most recently was the business director for Secretary Hillary Clinton’s 2016 presidential bid. Rhett was also appointed to the Obama Administration where he served on the White House Business Council and as the director of private sector engagement in the Office of the Secretary at the U.S. Department of Health and Human Services (HHS). During his time in the federal government, Rhett was the main liaison between the Secretary's office and the business community, working to engage the private sector on a variety of policy issues, including the implementation of the Affordable Care Act. He played key roles in many of the administration's public-private partnerships. Rhett has also held several roles in the business advocacy community, including serving as president and managing director of the Small Business Majority, an advocacy organization for entrepreneurs.
“Now more than ever, business is playing a critical role in our public conversation," said Rhett Buttle, founder and principal of Public Private Strategies. “I couldn’t think of any better way to represent the business community than by becoming a business owner myself and working with an amazing institution like the Aspen Institute to help bring private sector solutions to our country’s challenges.”
“We couldn’t be more thrilled to have Rhett on our team. Rhett has built his career on cultivating private sector leadership on some of the most critical social issues that underpin economic inclusion and security, bringing the business community together with other sectors in strategic and pragmatic ways to solve problems. Rhett’s skills will help bring our work on economic opportunity and financial security to a new level,” said Ida Rademacher, vice president at the Aspen Institute and executive director of the Institute’s Financial Security Program.
Buttle’s fellowship with Aspen begins this November. Public Private Strategies, while already working on several projects for the last few months, officially launches today.
About Public Private Strategies Public Private Strategies (PPS) is a consulting firm that is focused on where the public and private sectors meet. We have decades of experience organizing economic leaders – from small business owners to Fortune 100 executives – to engage in public policy and coalition building. This experience, coupled with our long-term working relationships with national, state, and local business organizations makes PPS uniquely positioned to support our partners in scaling their business engagement efforts. You can learn more about us here: https://www.publicprivatestrategies.com/

Open Enrollment: An Important Moment for America's Self-Employed

Sat, 11 Nov 2017 16:22:00 GMT

More than a million self-employed people have purchased insurance through the Affordable Care Act.

Despite the partisan bickering in Washington, D.C. over the future of health care, millions of Americans will soon be making decisions regarding their health insurance plans and coverage during the upcoming open enrollment season. This year, the open enrollment period at healthcare.gov is shorter than usual and only runs from November 1 through December 15, 2017. While politicians debate the Affordable Care Act (ACA), self-employed Americans and entrepreneurs should be focused on what the current law means for them and their family. Now is an important time to review current health care needs and insurance plans and evaluate any changes to prescription drug coverage or other necessary benefits unique to a particular situation. With all the news about health care, it may be difficult for the American public and the small business community, including the growing 27 million self-employed entrepreneurs and micro-businesses, to decipher exactly what is happening with health care and available options. The most important thing to know right now is that you can still access health care plans on the individual marketplace. The bottom-line: now is the time to start thinking about your current plan and the potential health care options as open enrollment in the Health Insurance Marketplaces is just around the corner. Before the ACA, the self-employed had limited options when it came to health insurance, but under the ACA, these entrepreneurs have better options for coverage, often at a more affordable price. A 2017 U.S. Treasury Department report showed one in five customers benefitting from the marketplace was a small business owner or a self-employed individual. As a self-employed small business or similar entity considering purchasing your health coverage this year through the Health Insurance Marketplace, it is important to have the necessary information.

Here are some of top things you need to know.

The Health Insurance Marketplace is now in full swing -- and closes on December 15. Because the enrollment period is much shorter, you must decide on a health care plan before the deadline. You cannot count on automatic enrollment of your current plan this year because automatic enrollment does not occur until after December 15 and could potentially lock you into an unwanted plan. Small business owners and entrepreneurs can go to healthcare.gov and shop for coverage or choose to work with a registered agent or broker. If you need in-person assistance in enrolling, free expert help is available by calling 1-800-318-2596 or online at http://localhelp.healthcare.gov . Many of the current consumer protections will continue to apply as part of the coverage found on the Marketplace. For example, you can't be turned away because of a pre-existing condition or charged more because you are a women, and many plans will include provisions known as Essential Health Benefits, which cover things such as maternity care and other benefits that may be important for a particular circumstance. For entrepreneurs who already have health insurance on the Marketplace, this may be your chance to shop for a better, more cost-effective plan. The options in your area may have changed this year, so don't assume the available plans are the same as last year. By just doing a little research, you may find a plan that is better fit for you and your family. You may even qualify for a tax credit to help afford coverage.
Through the implementation of the ACA, over 20 million Americans have been able to access health care insurance. America continues to be stronger today because of everyone has obtained critical coverage from the law. While it does need work to strengthen it, over a million self-employed individuals have now benefited from the freedom to choose the plan that is most convenient and inexpensive for them. The ACA provides access, flexibility and high-quality care that the American public and small business community deserve to have -- and the peace of mind that comes with having health insurance to allow you to focus on what matters -- growing your business.

Note: This article first was published on Entrepreneur.com

publicprivatestrategies

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