President Biden Unveils a Budget Proposal that Includes Strong Investments in Essential Benefits for Small Businesses

"Today, President Biden proposed a budget for Fiscal Year 2024 (FY24) that builds on the progress from the last two years and supports investments in the small business ecosystem. We are particularly pleased about provisions to reduce healthcare costs, expand health coverage, implement comprehensive paid family and medical leave, and make robust investments in vital small business programs.

We also support the tax reforms included in the proposed budget to enable investments in these programs, specifically provisions that will level the playing field for Main Street small businesses. It is important to note that the proposed tax reforms will not impact the vast majority of small businesses but instead ensure that wealthy Americans and large corporations pay their fair share. 

We applaud the President’s commitment to bolstering entrepreneurship and expanding job creation, including the following provisions:

Essential Benefits

Healthcare: 

• Recent Small Business Majority polling revealed that 71% of small business owners ranked bringing down the cost of healthcare as a top priority for policymakers. The proposal to make the Affordable Care Act’s (ACA) premium subsidies permanent will enhance access to healthcare coverage for small business owners, employees and the self-employed who comprise the majority of the enrollees in the ACA marketplaces.
• Rising prescription drug costs have hurt small business owners’ bottom lines. The proposal to build upon the Inflation Reduction Act and continue to lower the cost of prescription drugs will ensure that entrepreneurs and their employees have access to the medication they need at a price they can afford.

Paid family and medical leave: 

• Small business owners have ranked passing a federal paid family leave program as a top priority for policymakers, and 70% of small business owners and operators support establishing a federal program to guarantee access to paid family and medical leave. The proposed national, comprehensive paid family and medical leave program will help small businesses compete in an already difficult hiring market by giving employees access to a benefit that small business owners may not otherwise be able to afford.

Childcare: 

• A lack of access to affordable childcare impacts the ability to attract a workforce while also impeding entrepreneurship. The proposal to invest in expanding quality childcare and learning opportunities will be important to retaining a skilled workforce.

Earned Income Tax Credit: 

• Making the Earned Income Tax Credit expansion for childless workers permanent will boost the pay of small business low-income employees, helping them to pay for basic expenses. 

Investments in Small Business Lending and Programming 

• The proposal to broaden responsible sources of capital by supporting historic lending levels across the Small Business Administration's 7(a), 504, Small Business Investment Company (SBIC) and Microloan programs will significantly expand the availability of venture capital funding for small businesses. 
• Providing the full amount authorized in the Bipartisan Infrastructure Law to support the Minority Business Development Agency (MBDA) will bolster minority-owned businesses that disproportionately faced the brunt of revenue loss and business closures during the pandemic. Additionally, shoring up the reach of the MBDA will encourage entrepreneurship and promote a level playing field for minority-owned businesses. 
• Nontraditional lenders such as community development financial institutions (CDFIs) are key partners in the work to enable small businesses with an opportunity to thrive. The proposed budget provides millions of dollars for the CDFI Fund to address the shortage of access to capital and affordable credit for small businesses located in historically under-resourced communities. 

We are encouraged by the Biden Administration’s proposal to advance robust investments in programs that will help to cultivate innovation and spur entrepreneurship. We urge Congress to enact legislation that mirrors this proposed budget and shows that they are committed to building a thriving and equitable economy.”

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