Latest news with #NationalSmallBusinessAssociation
Malaysian Reserve
07-05-2025
- Business
- Malaysian Reserve
New Small Business Data: Uncertainty Weighs Heavily
WASHINGTON, May 7, 2025 /PRNewswire/ — As the nation celebrates National Small Business Week, the National Small Business Association (NSBA) is releasing new data showing that nearly two-thirds of small businesses picked economic insecurity the top challenge facing their business – the highest this indicator has been in 13 years. NSBA's annual Small Business Economic Report details small-business confidence, economic outlook, financing, hiring and a host of other key indicators. 'We've been hearing from our members for months that they are concerned about the economy, this survey confirms it: the vast majority of small-business owners expect a flat economy or even a recession in the coming year,' stated NSBA President and CEO Todd McCracken. 'When compared with six months or even one year ago, the majority believe that today's economy is worse off, and small-business confidence in the financial future of their business is at its lowest point since July 2009.' While the small-business overall outlook isn't great, it isn't all doom-and-gloom. As is typically the case with small-business owners, there is an inherent optimism they have in their ability to manage their own business; most report they are already growing or anticipate growth in the coming year. When it comes to capital, the lifeblood of any small business, there hasn't yet been a marked drop in terms of small-business owners' ability to access loans. That said, 40 percent say they are unable to get the financing the need – which should be a wake-up call given the direct correlation that exists between capital availability and job growth. Among the key policy imperatives, small-business owners expressed growing concern over the impact of tariffs and placed top priority on policymakers ending partisan gridlock and work together. 'I look forward to working with Congress and the administration to ensure pro-small-business policies are sought out—including tax extenders, eliminating the Corporate Transparency Act and strengthening small-business lending,' stated McCracken. Please click here to read the full report. Celebrating more than 85 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America's entrepreneurs. NSBA's 65,000 members represent every state and every industry in the U.S. Please visit or follow us at @NSBAAdvocate. View original content to download multimedia: SOURCE National Small Business Association
The Hill
09-04-2025
- Business
- The Hill
Ackman: Many small businesses will go bankrupt if Trump doesn't pause tariffs soon
Billionaire hedge fund investor Bill Ackman suggested small businesses will be crippled by President Trump's sweeping tariffs if a pause on global import taxes isn't implemented by the administration. 'If the president doesn't pause the effect of the tariffs soon, many small businesses will go bankrupt,' Ackman wrote Wednesday in a post on social platform X. 'Medium-sized businesses will be next.' 'A 90-day pause will enable @realDonaldTrump to accomplish his objectives without destroying small businesses in the short term,' he added. His comments come a week after Trump imposed a 10 percent baseline tariff on all foreign imports — including traditionally exempted products such as tea or coffee — as well as higher reciprocal tariffs on a handful of countries. The latest duties went into effect early Wednesday. Ackman said he's received emails from several start-up companies that he's invested in with concerns about their ability to meet the margin amid the market shake up. 'Unlike many industries, there is no 'reshoring' solution for coffee. The U.S. simply does not grow coffee at commercial scale, and domestic tea production is virtually nonexistent,' he explained in his post online. 'There is no viable domestic alternative in the short or the long term.' The billionaire, who endorsed Trump's 2024 presidential bid, gave a stark warning on Sunday about the risks of the president's trade agenda, arguing it could cause the economy to collapse and hurt voters. He doubled down on his remarks Tuesday, clarifying that he supports the use of tariffs to wage stronger trade relationships with the international partners, but suggested Trump should consider a brief intermission before imposing steeper rates. A number of small businesses, 42 percent, have already reported increased costs as a result of the tariffs, according to a survey from the National Small Business Association. Another 30 percent said they experienced delays in shipment and fulfillment, according to Forbes. Despite fluctuation in stock prices, anxiety from global leaders and protests from American business owners, the White House has insisted the administration will not back down on tariffs. 'We have an opportunity to change the fabric of our country,' Trump told reporters in the Oval Office on Monday. 'We have an opportunity to reset the table on trade.'
Forbes
08-04-2025
- Business
- Forbes
Tariff Wars And Small Businesses: An Overlooked Economic Ripple Effect
As conversations around tariff policy reemerge in the national dialogue, it's important to understand who stands to be most affected. While much of the attention focuses on multinational corporations, small businesses—those with fewer than 500 employees—make up 99.9% of U.S. businesses and remain central to our economic engine. Their role in global trade is significant, yet their vulnerability in tariff policy discussions is often underrepresented. According to the U.S. Census Bureau, small and medium-sized enterprises accounted for 98% of the nation's exporters in 2021, contributing to over $413 billion in total export value. At the same time, many small firms rely on imported goods and materials for manufacturing and resale. As a result, changes in trade policy—particularly increases in tariffs—can have outsized impacts on their operations and long-term sustainability. Unlike larger companies, which often have greater leverage to absorb price increases or restructure supply chains, small businesses typically operate with tighter margins. When tariffs are imposed on key imports such as steel, aluminum, textiles, or electronic components, those costs are passed down the line—eventually affecting pricing, production, and staffing decisions. A National Small Business Association survey found that 42% of small businesses reported increased costs as a result of tariffs, while 30% noted delays in shipments and fulfillment. For example, a small specialty manufacturer importing machinery parts from overseas may see a 10-25% increase in cost due to tariff hikes—expenses that are not easily recouped without raising consumer prices or reducing output. In a competitive market, either option can be difficult to sustain. While imports are a challenge, exports are also under pressure. Small businesses engaged in exporting often face tariffs imposed by other countries in retaliation. These added barriers can dampen the competitiveness of American-made goods abroad. A 2022 study by the Congressional Research Service noted that retaliatory tariffs from trade partners during previous trade disputes affected over $120 billion in U.S. exports, with agriculture and small-scale manufacturing among the hardest hit. Given that small firms are responsible for more than a quarter of total U.S. export value, even marginal increases in trade friction can have measurable consequences for growth, hiring, and reinvestment. Perhaps one of the most difficult aspects for small businesses is the unpredictability that comes with shifting trade policy. Long-term investments—whether in equipment, workforce development, or market expansion—are often delayed or scaled back amid uncertainty. For many entrepreneurs, planning for the future requires some degree of stability, and rapid changes in tariff regimes can upend even the best-laid business plans. As the U.S. continues to navigate global economic challenges, it's critical that the small business lens is not lost in broader policy discussions. Trade policies—including tariff frameworks—should be designed with an understanding of how they affect businesses of all sizes, not just those with the resources to adapt quickly. This includes more robust small business impact assessments, expanded export training and support, and greater engagement with industry associations that represent smaller firms. By integrating the voices and needs of small business owners into trade conversations, we can develop strategies that promote both global competitiveness and local economic resilience. Small businesses are more than the backbone of the American economy—they are innovators, job creators, and community builders. Ensuring their continued success in a dynamic global market requires thoughtful, inclusive policy—and an acknowledgment that every tariff has a downstream impact far beyond the negotiating table.
Yahoo
03-03-2025
- Business
- Yahoo
Treasury Department halts enforcement of BOI requirements: What to know
The Brief The Treasury Department announced that it is suspending enforcement of the Beneficial Ownership Information (BOI) reporting requirements. The rule requires the owners and part-owners of an estimated 32.6 million small businesses to register personal information, such as their name, birthdate, and address. It's part of the Corporate Transparency Act passed in 2021, a law meant to cut down on shell corporations and money laundering. WASHINGTON - The U.S. Treasury Department announced on Sunday that it was suspending enforcement of the Beneficial Ownership Information (BOI) reporting requirement for U.S. citizens and domestic companies. In response, President Donald Trump praised the move on Truth Social as a win for U.S. businesses. Here's what to know: What we know The Biden-era initiative says companies may be required to report certain information on their beneficial owners to the Department of the Treasury's Financial Crimes Enforcement Network (FinCEN). It's part of the Corporate Transparency Act, an anti-money laundering statute passed in 2021. Dig deeper Under the rule, a "beneficial owner" includes any individual who – directly or indirectly – either "exercises substantial control over a reporting company," or "owns or controls at least 25 percent of the ownership interests of a reporting company." When filing BOI reports with FinCEN, the rule requires the owners and part-owners of an estimated 32.6 million small businesses to register personal information, such as their name, birthdate, and address. The aim of the law is to cut down on shell corporations and money laundering. But small business advocates have said the reporting requirements are too burdensome, and it has been opposed by Republican-led states and lawmakers. Timeline The rule has long been in legal limbo. On Sunday, the department announced that penalties or fines associated with BOI would not be enforced, nor would penalties against U.S. citizens or domestic reporting companies or their beneficial owners. Instead, the focus will turn to foreign companies only. What they're saying U.S. Secretary of the Treasury Scott Bessent called it a "victory for common sense." "Today's action is part of President Trump's bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy," Bessent said in a statement. The National Small Business Association also issued its own statement, calling BOI reporting "a massive burden." "While we appreciate the restraint and understanding FinCEN appears to be showing about the massive burden BOI reporting poses for millions of small businesses, we urgently need Congress to intervene and pass legislation that doesn't harm small businesses, and actually fixes the problem of money-laundering; both sides of the coin on which CTA is a complete failure," National Small Business Association President and CEO Todd McCracken said. Trump, for his part, called the requirement "outrageous and invasive." The other side Democrats and progressive organizations in support of the law have argued that disclosure of beneficial ownership information helps law enforcement combat money laundering, terrorist financing and other misconduct through business entities. The Source This story was reported using information shared by the U.S. Treasury Department on March 2, 2025, as well as information published online by the Financial Crimes Enforcement Network. It was reported from Cincinnati, and FOX Business contributed.
New York Times
04-02-2025
- Business
- New York Times
Small-Business Owners Say Tariffs Will Squeeze Them, and Their Customers
For small businesses across the United States, President Trump's broad tariffs on Chinese-made goods could squeeze their already tight margins, and cause sticker shock for customers. Sarah Pitkin, who owns four hardware stores in Virginia, said the prices of the power tools, barbecue grills and electronics that she stocks could all rise as a result of the 10 percent tariff on Chinese products, which took effect on Tuesday. At least 40 percent of the goods that Ms. Pitkin sells are imported from China through her distributors, who she said would probably pass the cost of the tariff on to her. A $129 drill at her store, for example, might jump to more than $140. Profit margins for power tools are tight, Ms. Pitkin said, meaning she would have to charge her customers for the entire cost of the tariff. 'People can't pay more for stuff, and won't pay more for items,' Ms. Pitkin said. Referring to the size of her inventories, she added, 'Your items shrink to the point where you're really going to evaluate if you'll keep certain shops open.' Consumer electronics, electrical equipment, and textiles and apparel are among the top categories of goods imported into the United States from China, according to Census Bureau data compiled by Torsten Slok at Apollo Global Management. Tariffs on these imports, and others, are poised to have ripple effects throughout the economy, hitting small businesses that rely on the goods — whether directly or through distributors — particularly hard. In a survey of more than 600 members by the National Small Business Association, set to be released next week, more than half the owners said they were concerned about tariffs under the Trump administration, and nearly a third were 'very concerned,' said Molly Day, a spokeswoman for the association. Kelli Courtney, who owns Margaret's Boutique, a women's clothing shop in Decorah, Iowa, buys most of the clothing from manufacturers based in the United States. On Tuesday morning, she walked around the store, examining the tags on dresses and jeans from various brands, including one called Democracy. 'That sounds very American, but if I look in their pants, in their jeans, it says, 'Made in China,'' Ms. Courtney said. 'When it comes across the border all sewn together, that company that I'm working with will pay the tariff, but of course they're going to pass it on to me.' How much of those costs that Ms. Courtney would on to her own customers is an open question. Raising prices too much could run her out of business. And small businesses don't have the same leverage as big box retailers to negotiate with their suppliers for lower costs, she said. Another issue looms over Ms. Courtney's business decisions: potential tariffs on Canada. Roughly 15 percent of her clothing lines come directly from Canada, which along with Mexico was granted a one-month reprieve from U.S. tariffs after their leaders struck last-minute deals with Mr. Trump on Monday. On Tuesday, two of the Canadian clothing lines that sell to Ms. Courtney told her that they planned to absorb any costs from upcoming tariffs, rather than charge her. But the uncertainty surrounding tariffs on Canada is already influencing Ms. Courtney's business decisions. She was planning to feature a Canadian manufacturer's merchandise at an event this spring, but 'now I'm completely on hold,' she said. The lingering threat of tariffs on Canada is a dilemma that Michael Howard, who owns Howard Family Designs, a furniture business in Warren, Mich., is confronting, too. About 30 percent of the softwood lumber in the United States is imported from Canada, which is also the source of much of the plywood Mr. Howard buys from stores in his area. A sheet of plywood from his local supplier jumped to $80 last week, from $60 last month, he said. He attributed the surge to anticipation of sweeping tariffs on Canada. That jump in cost is forcing Mr. Howard to raise estimates for his work. He now plans to quote one client $2,000 for a custom-made bookshelf, $300 more than he would have otherwise charged. 'I can't absorb the increased cost of a product,' Mr. Howard said. For Jennifer Zimmerman, who owns No Gluten Kneaded, a gluten-free bakery in Bohemia, N.Y., prices for crucial ingredients are likely to increase. She buys xanthan gum, a gluten substitute, from a wholesale supplier in Queens that imports it from China. Her gluten-free rice flour also comes from China. Ms. Zimmerman thinks her suppliers in the United States will probably pass on the cost of the tariffs to her, which means she is considering raising prices in her bakery, too. But she is worried that customers won't pay much more than what she already charges. Ingredient costs, including the high price of eggs, have already forced her to raise prices for her baked goods in recent weeks. 'It's going to be harder for us to stay open,' she said.
