Biden’s Goals For the US Economy: New Hope For Small Businesses

After almost a year of setbacks, the US economy is ready to face a boom. Experts suggest that the GDP may even surpass pre-pandemic conditions. But as expected, the recovery could be a little bumpy in the short run.

The US Government has played an imperative role in keeping the economy afloat. President Joe Biden has signed a $1.9 trillion stimulus known as the American Rescue Plan Act (focused on Covid 19 reliefs) on 11th March 2021.

“Help is on the way, he said”. The fund contains provisions aiming to help small businesses at large.

Here are a few instances of how the ‘American Rescue Plan’ helped small businesses sustain –

  • The Act sanctioned $10 Billion through SSBCI for State Governments to help fund private businesses and hand out low-interest loans alongside other investments that helped in the recovery of the small business industries.
  • $15 Billion has been given to Small Businesses in disadvantaged areas like minority-owned businesses.
  • The $1.9 trill stimulus also provided restaurants with relief funds of nearly $29 billion.
  • In addition to this, grants were provided to help sustain museums, theaters, concert venues, etc. that had to close down for the lockdown period.
  • $7.25 billion were further sanctioned to the PPP – a program that offers forgivable loans to small businesses affected by the pandemic.

    Starting from the previous spring, SBA has approved 8.25 million PPP loans worth a total of $718.1 billion. 

    The $1.9 trillion stimulus, effective as it is, does not focus solely on businesses. However, another such program also does exist; The Made in America Act.

    This Executive order promotes Government expenditure on local businesses – both large and small.

    The aim is to boost the localization of goods and services so the local businesses can thrive once more.

    These investments aim at helping create a skilled taskforce & better-paying jobs; driving the Economy to positive change.

    Biden's America Rescue Plan 2021

    During his speech on this matter, Joe Biden mentioned that small businesses are responsible for around 44% of the country’s GDP and are responsible for providing jobs to nearly half of America’s working population.  Having said that, he mentioned that his administration is fully aware of the importance of helping grow small businesses to waygate the growth of communities and the economy.

    Biden’s Executive Order comes as a ray of hope and also a brilliant strategy for small businesses to thrive. 

    So to speak, this is an excellent time, filled with opportunities – for both new and existing small businesses. Here’s how.

    1. Buy American

    Biden plans to make a procurement investment of $400 billion and tag along with other plans like Biden’s clean energy & infrastructure plan. These will channel a greater demand for American products & services. 

    As for the shipping too, he ensures that they are shipped on U.S flagged cargo carriers.

    2. Widespread Investments

    Generally, investments, venture capitals, good jobs, and education opportunities don’t reach all corners of America – only the good parts. The president plans to ensure that all major public investments such as R&D, infrastructural development, procurement, training, etc. are properly decentralized and that they reach all parts of America – regardless of race, gender, religion, disability, or national origin.

    business market

    3. Bigger Market

    On average, the Federal Government spends nearly $600 billion/year for the procurement of resources & goods. The ‘Made in America’ act compels Contractors & Federal agencies to buy more American-made products.

    4. More Data Access

    The Executive Order makes for a public website answering questions – most business owners have but don’t always have the answers to. The website has procurement details like “Which companies applied for waivers and for what products? Why was the waiver denied?” 
    Previously Small Business owners didn’t always have access to such sensitive data. The availing of such strategic data gives them a chance to compete in the market.

    5. Procurement Favoring Small Businesses

    The administration ensures that a minimum of 23% of all Federal contracts goes to small businesses. Biden’s plans on implementing a multifaceted small business contract strategy should also include – counseling Small Business owners, Monitoring of Contact awards, widespread outreach, etc. Further along the lines, he plans on opening up a Federal Procurement Center – a program that would help Minority-owned small businesses to apply and win Federal Government contracts.

    6. Sustainable Prices for Local Goods

    Under the Executive Order, Biden instructs businesses to buy American products at relatively higher prices to help them compete with offshore businesses

    7. Verified USA made products

    The executive order will give preference to local producers in line for verification, as a result assigning higher sales and boosting customer loyalty of the brand.

    Joe Biden's economic goals for US

    8. Localizing Supply Chains

    The inclining of procurement commitments made by the Federal sector will help formulate local supply chains consisting of American Small Businesses. From cement, steel, concrete & building materials to cars, biotechnology & robotics – America plans to start sustainable production and supply chains.

    As these grow, a multitude of small businesses will grow along with the industries.

    Conclusion

    Government spending will continue to support growth, so will private businesses. Meanwhile, it’s only natural that some businesses will be left out from the heavy government funding. But they can still be able to survive and sustain themselves by applying for Merchant Cash Advances from the MCA industries.

    All in all, it’s a great time for Small Businesses to thrive, be they old or new. So if you’re a small business owner, your time has come to apply for a quick business loan today.

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