SBA Works to Fuel Our Economic Engine & Creat More American Jobs

Economic vitality means tomorrow will be better than today. Small business owners across the Atlantic Region of New York, New Jersey, Puerto Rico and the US Virgin Islands are currently witnessing record-setting growth; it’s a boon to the backbone of the American economy. With over 97% of businesses in the United States being small businesses – employing 500 or less people – the US Small Business Administration is at the foreground of accelerating growth, listening to entrepreneurs to reduce burdensome regulations and providing the capital and guidance to refuel small business in today’s new era.

The SBA IGNITE Tour kicked off in 2017 under the leadership of Administrator Linda McMahon, engaging communities, small businesses, Chambers of Commerce and community leaders across our nation. The Atlantic Region has been a key part of the IGNITE Tour; New York City was Administrator McMahon’s second visit as part of this initiative. In fact, Administrator McMahon has visited our region as part of IGNITE more five times, among the top in the nation.

Listening to what is on the minds of small business owners is one of the SBA’s top priorities. After all, the over 30 million small businesses nationwide employ over 51% of the American workforce. Engaging in one-on-one conversations with businesspeople, we have learned a lot. Simply put, from our discussions and historical data, we know that when small businesses are strong, not only does America do well but so does our economy.

In speaking with entrepreneurs, both the Administrator and I have found that the statistic of small business optimism being at its highest point in more than three decades is accurate. According to the National Federation of Independent Businesses, small business owners continue hiring, creating new jobs and raising employee compensation at record levels. These record-breaking figures are driven by small business owners executing on plans they’ve put in place due to dramatic positive changes in the nation’s economic policy over the past two years. This is phenomenal news for the American workforce.

The Tax Cuts and Jobs Act, signed into law by President Donald Trump, was the point from which this started. The taxpayer-friendly measure that President Trump strongly advocated for simplified the tax filing process; it now allows both individuals and small businesses to keep more of their own money. With a lower tax rate, small businesses have additional resources available that they can use to grow and expand their operations. That’s precisely why NFIB’s Chief Economist, Bill Dunkelberg, said in a recent economic forecast that “[b]ased on small business employment and hiring plans, owners aren’t expecting much of an economic slowdown in the first half of the year.” (NFIB, 1/31/2019)

Moreover, at a Small Business Roundtable in Oriskany, New York that I attended with Administrator McMahon, the owner of A&P Master Images, Howard Potter, remarked that “[i]t’s getting to a point where you have all these regulations, there’s not enough people that can explain the regulation or help that business understand the regulation to invest in growth.” Administrator McMahon agreed and vowed to press for changes. At a different IGNITE Tour event Syracuse’s Tech Garden, numerous “business owners generally agreed that lower federal taxes would give them more control over their profits and help them expand.” (Syracuse Post-Standard, 11/6/17) Our Atlantic Region is proof positive of these results.

Both Administrator McMahon and I have traveled across the Atlantic Region during the IGNITE Tour – from New York City to Buffalo and from Newark to Puerto Rico – with a laser-focused mission: listen to entrepreneurs, small business owners and community leaders concerning tax reform, regulations and access to capital; educate neighbors about the SBA’s services and programs to help them succeed; vociferously advocate for small businesses in Washington and be their strong voice in the nation’s capital; and push policies resulting in economic growth that yields jobs creation and a thriving economy.

It’s a winning strategy that has yielded economic results that are hard to argue with. The most recent NFIB’s monthly Jobs Report showed that a seasonally-adjusted net 18% of small business owners plan to create new jobs for their business. What’s more, 23% plan to increase total employment at their firm and just 3% plan worker reductions. Owners continue to report increasing employee compensation, with a net 36% of entrepreneurs reporting higher compensation in January 2019, up one point from December 2018. A net 20% of owners are also planning increases in the next few months, predicting further gains in wages and benefits. (NFIB, 1/31/2019)

In city after city, town after town, business leaders continue to crow about the incredible state of small business in America; they appreciate President Donald Trump’s focus on tax reform and deregulation - two items that are helping small businesses thrive. By relieving businesses from time-consuming and outdated regulations, small businesses will no longer be bogged down by costly paperwork that has stifled innovation and slowed economic growth for far too long.

The Trump Administration’s regulatory reforms and the tax relief bill passed by Congress and signed into law by the President will continue resulting in “very strong growth, millions more jobs and higher pay for Americans.” And we’re already seeing that happen: small business confidence has hit a record high, jobless claims are at record lows and the economy is growing faster than it has in a decade. (NFIB, 1/31/2019)

Working with Administrator McMahon, we’ve consistently directed our federal government resources to deliver services across the Atlantic Region, operating under one aligned mission: small business job creation and strengthening our economy. These two items are our agency’s mission and what we are committed to achieving during our public service. We will continue to ignite small businesses that fuels our economic engine and creates more American jobs.

ABOUT THE U.S. SMALL BUSINESS ADMINISTRATION & SBA ATLANTIC REGION (Region II)

The U.S. Small Business Administration makes the American dream of business ownership a reality for millions of Americans. As the only go-to resource and voice for small business backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. The SBA delivers services through an extensive network of field offices, located throughout ten different regions of the country. The Atlantic Region (Region II) services the States of New York and New Jersey as well as the Commonwealth of Puerto Rico and the U.S. Virgin Islands. It is led by Regional Administrator Steve Bulger.