Last week we discussed Mr. Joe Biden’s policies that would impact small businesses if he could get these policies through Congress. Today, we are going to discuss the President’s Trump Policies for small businesses. I must say it was challenging trying to find President Trump’s policies for small businesses. The pandemic has been the driving force in the policies for both Joe Biden and President Trump. If you missed last week’s video on Mr. Joe Biden, you could find a link here.
The Politicians – Trump & Biden
Both President Trump and Mr. Biden’s policies have to do with the current pandemic.
President Trump has touted the programs that he put into place to support small businesses in these trying times.
The first program he discusses is the Small Business Administration’s Disaster Loans. He stated that he put legislation in place to support billions in low-interested disaster loans for small businesses. Also, SBA has streamlined the application process for these loans, which offered up to $2 million in assistance for each affected small business.
Department of Agriculture
The Department of Agriculture offers loan guarantees for rural businesses. Simultaneously, the Export-Import Bank of the United States is offering several relief measures for small businesses, including waivers and deadline extensions.
Department of Treasury
The Department of the Treasury delayed Tax Day until July 15, giving small business owners more time to pay taxes without incurring interest or other penalties.
President Trump signed legislation to provide a dollar to the dollar tax credit for providing paid leave to employees affected by the virus. Also, individual small businesses may qualify for an exemption if providing paid leave would jeopardize the company’s viability. President Trump states that this legislation provides flexibility to small businesses and supports workers instead of implementing an inefficient government-run program.
Department of Commerce
The Department of Commerce has a network of centers working with state and local partners to help businesses reduce costs, fill supply chain gaps, find new buyers, and more through the Commercial Service and Manufacturing Extension Partnership.
Department of labor
Changes made by the Department of Labor allows the flexibility to pay unemployment benefits when an employer temporarily ceases operations due to the outbreak.
My Thoughts on Trump’s Policies
President Trump is touting the work that was done not only by the Republicans but also the Democrats. After all, it took both parties to put the legislation in place to support the American public during these times.
President Trump needs to take action. However, I am leery of adding to our nation’s debt. It has been decades since we had a balanced budget. We continue to raise the debt ceiling year after year. Eventually, President Trump will have to address the debt ceiling.
PPP and President Trump
I have to be honest and say that I fully support low-interest loans to support those businesses that have been impacted by the virus. I’m afraid I have to disagree with the free money concept of the PPP loan. Not having to pay the money back is great for the small businesses IF they can meet all the program requirements. I believe that many small businesses will struggle to meet the qualifications. I’m afraid I have to disagree with loans to bail out all small businesses.
PPP Is Not the Answer President Trump
What good does the PPP loan do for businesses forced to close their doors as mandated by the state? For instance, small companies that own gyms, hair salons, and restaurants have been direct by the state government to stay closed. Many have had to keep their doors closed for over six months. What can these business owners do? The majority of these businesses do not have the working capital available to keep the doors open while waiting for the states to say it is okay to open your doors.
President Trump Did Not Think
President Trump did not think this through. He did not know about the possible scenarios and what relief businesses needed.
Why am I blaming Trump for this and not Congress? Because President Trump is taking the credit for what Congress did. If he is taking the credit, then he should take the blame.
The PPP loan only works when a company can have its doors open. What relief does a small business force to close its doors due to state mandate receive? Nothing. There is no relief for those businesses.
I have yet seen any data on the number of small businesses that have closed their doors.
I am willing to bet that more than ½ of them are out of business.
Why does SBA and the Department of Agriculture both offer loan programs to small businesses?
I believe that only one agency should offer loans to small businesses, and it makes sense to have them under the Small Business Administration. Imagine the cost savings if we went through the government agencies looking for duplicate programs and eliminated them. How much money would we save in personnel costs?
I am sure that this is not the only example.
I must say that the only way we can afford to pay for everyone’s assistance in the United States is to increase taxes after all the money has to come from somewhere. There is no such thing as free money. However, with many businesses closing their doors, the tax base will be lower. The result is less money available to support all the programs. The result is increased taxes for those in business and every American.
As bad as the virus has been on every American, there is an upside. More Americans will be wanting to open their businesses and may find that the time is right. After all, the states cannot continue with the lockdown forever.
Eventually, we will adjust to this new normal.
As usual, President Trump is claiming that his policies have influenced the economy.
He also claims that the programs that Congress created to help small businesses were his and his alone.
It is the first time in a long time that I can remember both the Republicans and Democrats coming together for the country’s good. Imagine the accomplishments when both parties work together.. Most of the time, our politicians act like children calling each other names and throwing each other under the bus.
It is about time that the American people come together and DEMAND that both parties start to work together instead of against each other for America’s sack. After all, that is what you were elected to do. Let me know your thoughts in the comments.
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