• Menu
  • Skip to right header navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

PlanningShop

Plan. Start. Grow.

  • Our Products
  • Instructors
  • Entrepreneurs
  • BizGear
  • Rhonda’s Blog
  • Book Rhonda
  • About PlanningShop
  • Search
  • Our Products
  • Instructors
  • Entrepreneurs
  • BizGear
  • Rhonda’s Blog
  • Book Rhonda
  • About PlanningShop
  • Search
Surviving Donald J. Trump

4 Steps to Take to Trump-Proof Your Small Biz

January 18, 2017 //  by Rhonda Abrams

On January 20, Donald J. Trump takes up residence in the White House. What does this new Administration potentially mean for small business?

There’s an old saying: politicians campaign in poetry and govern in prose. Now, the last campaign didn’t offer poetry from any side, but the grand promises and slogans of a campaign now have to be translated into nitty-gritty details. And for small business owners and entrepreneurs, the devil’s in the details of regulation and legislation.

So which details should entrepreneurs and small business owners watch out for in the new Administration and new legislation from Congress?  

** Lower business tax rate: During the election, Trump promised lowering the tax rate on “all businesses” to 15%. His latest wording, however, is that the lower tax rate will be “available to all businesses, both big and small, that want to retain the profits within the business.” Look carefully at that wording.  The overwhelming majority of small businesses operate as “pass through” entities – sole proprietors, partnerships, “S” corporations, LLCs –  which are not allowed to retain profits within the business. With this detail, it’s likely that only “C” corporations – generally larger corporations – will benefit.

** Other tax issues: Trump has said he wants to “eliminate loopholes” and simplify the tax code. Everyone can agree with that. But watch carefully what that means. It may mean that deductions many small business owners depend on, such as deducting the cost of using your car or truck for business, or carrying forward business losses – or incentives for investors to fund new businesses – could be lost or reduced.

** SBA loans: Here’s a little secret: big banks aren’t eager to lend to small companies, so they rely on government-guaranteed loans through the Small Business Administration to motivate them to loan money to small companies. Traditionally, SBA budgets often face more opposition under Republican Administrations, which would mean less money available for small businesses to purchase real estate, equipment, fund growth. Trump’s appointee for SBA Administrator is the co-founder of the World Wrestling Federation. We’ll have to see if she has the stomach to wrestle with a Republican-controlled Congress for sufficient funding for small business loans.

** Fintech: In the last few years, there’s been a “wild west” of new online alternative small business lenders. With inconsistent regulation, rates typically average 90-300% APR, and small businesses have a difficult time figuring out what they’re actually being charged. Even those in the industry agree it’s time for sensible regulation. Whether this will happen carefully, if at all, will affect how much money will be available to small businesses and what protections will be provided against predatory lenders.

** Health care: Both Trump and the Republican Congress have vowed to repeal the Affordable Care Act. It’s not clear what, if anything, will replace it. Before the ACA, many small business owners could not get health coverage at all if they had even a minor pre-existing condition (which virtually everyone over 40 does). For women sole proprietors, it was often difficult to find insurance that included maternity coverage. Many would-be entrepreneurs were locked into jobs they no longer wanted just to keep health insurance. Proposals to create a “high risk pool” likely mean much higher costs for insurance for solo proprietors and very small business owners.

So what should small business owners do now?

** Take deductions you can now: Once things start changing in the tax code, it’s not clear what will stay and what will be eliminated. If you’ve been thinking of buying that new truck, now may be the time.

** Get health insurance: If you’re not already covered, you may want to lock in a policy while you can. It’s less likely you’ll be kicked off insurance once protection for “pre-existing conditions” is lost.

** Do your preventative health care now: The ACA required insurance policies to provide free preventative care, such as immunizations, cholesterol screenings, mammograms, and more. Expect those free benefits to disappear. Check out this list and get them done ASAP.

** Stay informed: You’re going to need to know the real details or policy proposal affecting small business. So use news sources that check sources and include the fine print. Don’t believe everything you read on social media.


Copyright, Rhonda Abrams, 2017

This article originally ran in USA Today on January 18, 2017

Share this:

  • Twitter
  • Facebook
  • LinkedIn
  • Email

Category: Solution CenterTag: Congress, Donald Trump, health care, health insurance, legislation, rhonda abrams, small business, small business tips, tax rate, Trump Administration, USA Today

Previous Post: « Survey Says! It’s a Great Time to Own a Small Business
Next Post: Small Business Borrowing Troubles Bank Loan Trouble»

Primary Sidebar

Subscribe to Rhonda's Blog via Email

Instagram @rhondaabrams

Sign up for my newsletter - get small business tip Sign up for my newsletter - get small business tips and the latest info. sent straight to your inbox! Link in profile~
.
.
#smallbusiness #newsletter #smallbizguru
What’s old is new again! How to stay in front of What’s old is new again! How to stay in front of your smallbiz customers, in my latest @usatoday column. Link in profile~
.
.
#smallbusiness #customer #digitalmarketing #smallbizguru
National Doughnut Day on Friday?? Great way to sta National Doughnut Day on Friday?? Great way to start the weekend!! Enjoy, and go find yourself some doughnuts 😋 🍩 
.
.
#smallbusiness #fridayfeeling #nationaldoughnutday
#smallbusiness #tuesdaythoughts #entrepreneur #ins #smallbusiness #tuesdaythoughts #entrepreneur #inspirationalquotes
“And I’m proud to be an American, where at lea “And I’m proud to be an American, where at least I know I’m free. And I won’t forget the men who died, who gave that right to me.” - Lee Greenwood -
.
.
#memorialday #neverforget
We're heading into a long weekend! Here's to some We're heading into a long weekend! Here's to some R&R, productivity . . . whatever your small business needs~
.
.
#smallbusiness #weekend #entrepreneur #fridayfeeling
Sign up for my newsletter - get small business tip Sign up for my newsletter - get small business tips and the latest info. sent straight to your inbox! Link in profile~
.
.
#smallbusiness #tips #entrepreneur #newsletter #smallbizguru
#smallbusiness #tuesdaythoughts #inspirationalquot #smallbusiness #tuesdaythoughts #inspirationalquotes
Here's to a great week, small business owners! . . Here's to a great week, small business owners!
.
.
#smallbusiness #smallbusinessowner #mondaymotivation
My Tweets
  • Sign up for my newsletter - get small business tip Sign up for my newsletter - get small business tips and the latest info. sent straight to your inbox! Link in profile~
.
.
#smallbusiness #newsletter #smallbizguru
    What’s old is new again! How to stay in front of What’s old is new again! How to stay in front of your smallbiz customers, in my latest @usatoday column. Link in profile~
.
.
#smallbusiness #customer #digitalmarketing #smallbizguru
    National Doughnut Day on Friday?? Great way to sta National Doughnut Day on Friday?? Great way to start the weekend!! Enjoy, and go find yourself some doughnuts 😋 🍩 
.
.
#smallbusiness #fridayfeeling #nationaldoughnutday
    #smallbusiness #tuesdaythoughts #entrepreneur #ins #smallbusiness #tuesdaythoughts #entrepreneur #inspirationalquotes
    “And I’m proud to be an American, where at lea “And I’m proud to be an American, where at least I know I’m free. And I won’t forget the men who died, who gave that right to me.” - Lee Greenwood -
.
.
#memorialday #neverforget
    We're heading into a long weekend! Here's to some We're heading into a long weekend! Here's to some R&R, productivity . . . whatever your small business needs~
.
.
#smallbusiness #weekend #entrepreneur #fridayfeeling
    Sign up for my newsletter - get small business tip Sign up for my newsletter - get small business tips and the latest info. sent straight to your inbox! Link in profile~
.
.
#smallbusiness #tips #entrepreneur #newsletter #smallbizguru
  • Footer

    Our Products
    Instructor Central

    Privacy Policy
    Contact Us

    • Email
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter

    Copyright © 2023 PlanningShop · All Rights Reserved · Site design by paulinaart

    This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. ACCEPT Read More
    Privacy & Cookies Policy

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
    Non-necessary
    Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
    SAVE & ACCEPT