• 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
  •  

How Trump and His Administration Failed Small Business

October 12, 2020 //  by Rhonda Abrams

President Donald Trump not only ignored the needs of small business, his Administration actively made things worse for those of us who own small businesses. There were times when it seemed as if senior members of his Administration were actually antagonistic to small businesses.

Of course, Trump’s biggest failure was his refusal to develop a national, coordinated policy to fight the virus, refusal to respect science and experts, and inability to provide stable leadership that could have brought the country together to fight this national threat.

But, in particular, as a small business advocate, I have watched in dismay as Trump and his Administration have ignored the needs of small business and put stumbling blocks in our way:

1. Trump used his bully pulpit to help big corporations, not to save small businesses

I remember how I felt when I heard President Trump say the following: “We have to save these companies. These are companies that weren’t in trouble three weeks ago, and now they’re in trouble because of what happened.” I was angry and disappointed. Why? Because Trump was talking only about big corporations—airlines, banks. (They got a half trillion dollar bailout fund!) I listened and listened over weeks but never heard Trump raise his voice with such concern or empathy for small businesses or the self-employed. He just didn’t seem to care about us.

2. The Trump Administration botched the roll-out of the PPP

The Paycheck Protection Program (PPP) was widely viewed as an execution disaster. The banks that were to administer the program got last-minute, inconsistent, and confusing guidance from Trump’s Treasury Department. The Trump Administration allowed banks to play favorites, giving their funds to their biggest corporate customers first, shutting out small businesses. It was a mess.

3. Called for loans, not grants, for small businesses

While the airline industry got $27 billion in mostly grants, small businesses were being told their only lifeline was taking on debt in an uncertain world. In a letter sent to me, Trump’s Treasury Department defended this reliance on loans saying, “A forgiven loan is essentially a grant.” Really? When the provisions at the time of applying for the loan was that forgiveness was based on using 75% of the funds on payroll in the next 8 weeks, and you have no idea when or whether you’ll reopen? Trump’s appointees may not know the difference between a grant and a loan, but small business owners do.

4. Made PPP forgiveness funds essentially taxable

This act alone shows how little the Trump Administration cares about small business. Congress specifically legislated that PPP loan forgiveness funds were NOT to be taxed. What did the Trump Administration do? It unilaterally decided to disallow exemptions for expenses used for forgiveness. In other words, if your small business had $100,000 forgiven because you spent that money on wages, those $100,000 in wages ARE NO LONGER TAX DEDUCTIBLE. You now have $100,000 more in taxable income. Over 100 business organizations have urged the Trump Administration to reverse this heartless and unnecessary decision that clearly goes against Congressional intent.

5. Reduced the one small grant allowed

The only “grant” for small companies was a measly $10,000 for advances for EIDL loans. The Trump Administration lowered this to a grant of only $1,000 for each employee hired, significantly lowering the very little amount of grant money available to the smallest businesses.

6. Unnecessarily complicated PPP forgiveness process

Business groups, including conservative groups such as bankers and accounting associations, time after time urged reducing the program’s red tape for small businesses, estimating the Trump Administration rules cost small companies thousands of unnecessary dollars.

When I see so many small businesses shuttered for good, when I see so many Main Streets hollowed out, I am angry. Incredibly angry. Most of these small businesses did not have to die. And that is why I am urging small business owners—and those who care about small businesses—to vote for Joe Biden for President.

Rhonda Abrams
Small business owner, author, columnist, and advocate

Share this:

  • Twitter
  • Facebook
  • LinkedIn
  • Email

Category: Rhonda's BlogTag: coronavirus, COVID-19, Joe Biden, Kamala Harris, PPP, PPP forgiveness, vote, vote2020

Previous Post: « What I Would Have Done Differently
Next Post: In 25 Years I’ve Never Done This Until Now… »

Primary Sidebar

Subscribe to Rhonda's Blog via Email

Instagram @rhondaabrams

It's almost the weekend! At which small business w It's almost the weekend! At which small business will YOU be shopping? I'm thinking @keplersbooks~
.
.
#smallbusiness #weekend #shoplocal #entrepeneur #fridayfeeling
We're celebrating! "Successful Business Plan" has We're celebrating! "Successful Business Plan" has been #1 for 30 YEARS! Do YOU have the newest edition? 
.
.
#business #bestseller #businessplan #smallbizguru
#smallbiz #tuesdaythoughts #shopsmall #smallbizgur #smallbiz #tuesdaythoughts #shopsmall #smallbizguru
#smallbiz #mondaymotivation #inspirationalquotes #smallbiz #mondaymotivation #inspirationalquotes
#smallbiz #thursdaythoughts #smallbiz #thursdaythoughts
Thanks to the American Rescue Plan, there’s lots Thanks to the American Rescue Plan, there’s lots more help for small business. I break it down in my current @usatoday column~
.
.
#smallbusiness #americanrescueplan #ppp #update #covid
Wishing you all a wonderful Easter & Passover~ . . Wishing you all a wonderful Easter & Passover~
.
.
#easter #passover
Another weekend is upon us! I wish you all some re Another weekend is upon us! I wish you all some rest & relaxation~
.
.
#smallbiz #weekend #entrpreneur #fridayfeeling #smallbizguru
Here's to rolling up those sleeves & getting those Here's to rolling up those sleeves & getting those hands dirty, small business owners! 
.
.
#smallbiz #wednesdaywisdom #smallbusinessowner #inspirationalquote
My Tweets
  • It's almost the weekend! At which small business w It's almost the weekend! At which small business will YOU be shopping? I'm thinking @keplersbooks~
.
.
#smallbusiness #weekend #shoplocal #entrepeneur #fridayfeeling
    We're celebrating! "Successful Business Plan" has We're celebrating! "Successful Business Plan" has been #1 for 30 YEARS! Do YOU have the newest edition? 
.
.
#business #bestseller #businessplan #smallbizguru
    #smallbiz #tuesdaythoughts #shopsmall #smallbizgur #smallbiz #tuesdaythoughts #shopsmall #smallbizguru
    #smallbiz #mondaymotivation #inspirationalquotes #smallbiz #mondaymotivation #inspirationalquotes
    #smallbiz #thursdaythoughts #smallbiz #thursdaythoughts
    Thanks to the American Rescue Plan, there’s lots Thanks to the American Rescue Plan, there’s lots more help for small business. I break it down in my current @usatoday column~
.
.
#smallbusiness #americanrescueplan #ppp #update #covid
    Wishing you all a wonderful Easter & Passover~ . . Wishing you all a wonderful Easter & Passover~
.
.
#easter #passover
  • Footer

    Our Products
    Instructor Central

    Privacy Policy
    Contact Us

    • Email
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter

    Copyright © 2021 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
    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.