Small Business Majority network members participate in roundtables with the White House National Economic Council
Over the past few months, Small Business Majority network members participated in roundtable discussions with the White House National Economic Council. Small business owners from across the country had the opportunity to voice their top concerns, share their experience with federal small business programs and suggest issues they would like the federal government to address. As small businesses continue to navigate an ever-complex economy these roundtables helped the Biden-Harris administration better understand the evolving needs of America’s entrepreneurs.
The two conversations covered the federal government’s pandemic-era assistance programs and access to capital challenges. While the business owners shared that COVID relief programs were critical to keeping their doors open, especially the COVID Economic Injury and Disaster Loan (EIDL), without which many of the entrepreneurs on the call said their small business wouldn’t have survived. However, some are now struggling to pay back their loans and fear that the amount of debt could lead them to sell their business or close their business.
Jude Olinger, business growth coach with Bloom Growth and business owner of the national market research firm The Olinger Group, worries that “A large number of small businesses have not recovered from the pandemic and are defaulting on their EIDL loans. The interest accrued in the forbearance period makes the balances such that many people’s payments are interest-only payments making it even harder to repay the loan. While I believe that the program saved a lot of businesses from failure and was needed, I believe that some mechanism should be created for relief for businesses unable to pay back the loan.”
Capital is crucial for entrepreneurs because it’s necessary to start and grow a business. While many of the small business owners shared they’d struggled to access capital through traditional bank lending, some had more success with their local Community Development Financial Institutions (CDFIs). Additionally, they expressed concerns about attacks on diversity, equity and inclusion (DEI) programs and funding opportunities. Lawsuits against government and private programs serving minority-owned small businesses, such as the Minority Business Development Agency and the Fearless Fund, have further restricted capital access for minority small businesses.
The third discussion covered procurement. The federal government is the largest purchaser of goods and services in the world, so there are many opportunities for businesses to work with the government through the procurement process. Unfortunately, it can be very difficult for small businesses to navigate the acquisition process at the federal level without substantial guidance, resources and access to contacts. While the Biden-Harris administration has made significant progress in expanding small business access to government contracts, there is still work to be done.
The fourth meeting covered creating a modern workforce with quality jobs for all. While many small businesses seek to hire new employees, a huge challenge is finding quality candidates and retaining them once hired. Brendan McCluskey, owner of Trident Builders, described two of the challenges he faces with retaining his workforce, saying, “The continued cost of healthcare and insurance is getting harder for small businesses to match what larger organizations can provide. We are limited to programs that aren't as generous or cover as much. Every year we are paying more and getting less in return. Additionally, the cost of childcare is a huge challenge for employee retention. All of us had experiences where we lost valued employees, some of whom had been with us for years and had developed deep knowledge and skills to support our specific business activity, only to have them leave to work at a larger company that provided childcare benefits.”
The final roundtable discussion covered fair competition and the need to level the playing field for small businesses. With mergers, predatory pricing, and other monopolistic behaviors, larger corporations can push small businesses out of the market. Jude Olinger described some of the challenges of working with corporations as a small business owner, sharing, “We have very large household-name brands as clients that changed our payment terms from 30 to 90 days and sometimes even 180 days. The reason is obvious: they have all the leverage to demand such terms against small businesses who can either take it or leave it. Enough businesses–mine included–suck it up since we have no choice if we want the work. We’re unable to recoup the cost of the money by raising prices since marketplace competition keeps a lid on prices to stay competitive. It’s quite unfair for a small business to have to finance Fortune 500 companies.”
The participants relished the opportunity to speak honestly about their experiences as small business owners. Nora Gilbertson, owner of Stay Loci, reflected on her event participation, sharing that “The issues facing small businesses and our workforce are wide-ranging. Participating in the roundtable demonstrated that this administration genuinely cares about the challenges facing entrepreneurs and the modern workforce.This engagement gives me hope that meaningful change is on the horizon for small businesses like ours.”