While some public companies have had to announce layoffs due to lower reported revenue, the real challenge, according to some experts, is the impact on small businesses.
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Kevin O’Leary, the popular Shark Tank host, was interviewed on Fox Business where he shared his concerns for small businesses across America.
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Why Is Kevin O’Leary Worried About Your Small Business?
“Let’s wake up, smell the roses, realize they’re under tremendous pressure and they ARE our economy,” stated the popular entrepreneur when talking about small businesses with five to 500 employees.
These are a few issues that have O’Leary concerned about small businesses across America:
O’Leary feels that small businesses have been “given nothing” by the Biden-Harris administration compared to the funding giant corporations have received with government programs like The Inflation Reduction Act.
The Fed has raised rates to cool off stubborn inflation, which has made borrowing money more expensive. These rate hikes are hurting small businesses as they can’t afford to borrow money to run their businesses.
The regional bank failures have led to more regulations, so it has become a struggle for small businesses to borrow money. These small companies are also concerned about leaving funds in bank accounts.
O’Leary pointed out that 60% of the jobs in the country come from small businesses, yet these organizations have been given the least support.
Funding Allocated to Major Companies
O’Leary discussed the various funding options for the major corporations out there. He specifically mentioned how the Chips and Sciences Act and The Inflation Reduction Act are all going to the “big guys” instead of local businesses trying to survive. The biggest issue is that these companies employ individuals outside the country, while small businesses could use the money to support the domestic economy.
How Would Kevin O’Leary Help Your Business?
O’Leary also offers solutions for what he would do to help small companies nationwide.
Support Proposed Legislation
The Shark Tank star shared his support for the Depositor Protection Act of 2023, which Senator Bill Hagerty introduced. He mentioned how he met with the staff to discuss this proposed legislation that was brought up originally in May. The act would introduce one guaranteed payroll account to protect commercial deposits of up to $100 million in non-interest-bearing accounts for two years.
Extension Of The Employee Retention Credit
Small businesses have been able to take back a grant for investing in their employees with the Employee Retention Credit, a refundable tax credit for those companies impacted by the pandemic. He believes this is the only active program that’s taking measures to help the little guys.
O’Leary feels it’s unfair that most government legislation is directed at global companies that hire staff outside the country. He firmly believes that the government should do more for small businesses struggling in the country instead of writing $2 trillion worth of checks to behemoth companies.
Closing Thoughts
O’Leary is worried that the government isn’t doing enough for the businesses that comprise 60% of the economy. If you run a small business, you’ve likely felt the pressure to increase prices to handle the higher interest rates introduced to combat soaring inflation. Hopefully, the government will take notice of some of the suggestions laid out by O’Leary.
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This article originally appeared on GOBankingRates.com: Why Kevin O’Leary Is Worried About Your Business — and How He Would Help It
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