Small Businesses are Optimistic about Build Back Better Framework

For Immediate Release: 
Thursday, October 28, 2021

Statement from John Arensmeyer, Founder & CEO of Small Business Majority, on the importance of advancing human and physical infrastructure provisions for the long-term success of small businesses

"President Biden’s revised Build Back Better Framework includes robust investments in healthcare and childcare, along with tax provisions needed to ensure that small businesses are at the center of a thriving and equitable economy. However, we wish legislators had agreed with the president to lower prescription drug prices more broadly and provide essential paid family leave benefits.

In recent Small Business Majority polling, 38% of small businesses reported that business conditions are on the decline compared to the month before. Small businesses are in desperate need of the Build Back Better Framework policies that will bolster their road to recovery and provide a boost to entrepreneurship and their employees. Specifically, the Framework addresses the needs of the 34% of small business owners who still struggle to access quality healthcare for themselves and their employees. More than half of all Affordable Care Act (ACA) marketplace enrollees are small business owners, employees, and sole proprietors. Strengthening the ACA by reducing health insurance premiums for more than 9 million Americans who buy insurance through the ACA marketplace is an essential step in their long-term recovery. Likewise, the Framework enables small business employees and independent entrepreneurs in states that have not expanded Medicaid to gain access to essential healthcare.

Additionally, the Framework includes support for quality and affordable childcare and the expansion of the Earned Income Tax Credit (EITC). Childcare impacts the small business ecosystem in a multitude of ways. For one, the lack of access to affordable childcare has become increasingly complex and a significant burden to working parents, impeding the ability to retain a skilled small business workforce. Limiting child care costs for families to no more than 7% of income, for families earning up to 250% of state median income, will greatly support small business childcare providers who are predominantly underpaid and overworked women and people of color.

Finally, we are also glad to see that the Framework will impose a 15% minimum tax on the corporate profits that large corporations—those with over $1 billion in net income—report to shareholders. Sixty-nine percent of small businesses support the idea of implementing provisions that will help ensure wealthy corporations and individuals pay their fair share. 

Although the Build Back Better Framework includes critical provisions needed to support a successful path forward for our economy, much more is required to rebuild and strengthen the backbone of our country. We are incredibly disappointed that the proposed national paid family and medical leave program is not included in this Framework. Small business owners need this support to ensure and promote a more resilient workforce and compete with large businesses for talented employees. Moreover, the Framework fails to address the need to make prescription drugs more affordable for everyone, which is essential to small-business bottom lines and is supported by 90% of entrepreneurs we surveyed. 

Congress must act swiftly to finalize the plan and simultaneously pass the Bipartisan Infrastructure Bill. The infrastructure legislation is essential to support access to customers and suppliers and create demand for the goods and services small businesses have to sell. Moreover, the expansion of broadband access, included in infrastructure legislation, is critical to improving small business operations. We urge Congress to quickly advance both plans and send them to the president’s desk forthwith."


About Small Business Majority

Small Business Majority is a national small business organization that empowers America's diverse entrepreneurs to build a thriving and equitable economy. We engage our network of more than 85,000 small businesses and 1,500 business and community organizations to advocate for public policy solutions and deliver resources to entrepreneurs that promote equitable small business growth. Our deep connections with the small business community along with our scientific research enable us to educate the public about key issues impacting America’s entrepreneurs, with a special focus on advancing the smallest businesses and those facing systemic inequalities. Learn more about us on our website and follow us on TwitterFacebook and Instagram.

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