Small Business

Supporting Small Businesses: Investing in the Backbone of Our Economy

Small businesses are the heart of the American economy. They employ over 61 million Americans, contribute nearly 44% of the nation’s GDP, and offer good-paying jobs that often exceed the federal minimum wage—averaging close to $30 an hour. They’re not just economic engines; they’re our neighbors, community leaders, and innovators.

Small business ownership reflects the rich diversity of our country:

  • 43% are women-owned

  • 14.5% are Hispanic-owned

  • 20% are owned by other people of color

  • 6.1% are veteran-owned

  • And remarkably, 41% are owned by immigrants.

These entrepreneurs aren't just starting businesses—they're creating jobs, revitalizing main streets, and investing in the future of their communities.

What the Federal Government Should Do

While big corporations get tax breaks and bailouts, small businesses are often left to navigate outdated systems and rising costs on their own. That needs to change.

Here are a few federal policies we should implement to support small business owners:

  • Expand access to capital by increasing funding for SBA microloans and simplifying the application process for underserved communities.

  • Create a national rent and property tax relief program for small businesses operating in high-cost areas.

  • Offer direct federal grants and forgivable loans for startups and neighborhood-based businesses, especially in historically disinvested communities.

  • Streamline federal regulations and licensing processes, particularly for sole proprietors and first-time entrepreneurs.

  • Provide federal tax credits for hiring locally, paying a living wage, or operating in rural, urban, and low-income communities.

  • Support skilled immigration reform that allows immigrant entrepreneurs to launch and grow businesses in the U.S.

  • Establish a public option for small business health coverage, reducing the cost burden of providing benefits.

A Choice Between Wall Street and Main Street

For too long, federal policy has tilted the playing field in favor of multinational corporations and Wall Street investors. But it's small business owners who take the real risks, support working families, and reinvest in our communities.

We can—and must—make policy choices that prioritize Main Street over Wall Street.

Supporting small businesses isn’t charity—it’s a smart investment in a stronger, fairer, more resilient economy.