Firms With Trump Links Or Worth $100 Million Got Small Business Loans
The government’s $349 billion small business lending program was designed to keep merchants afloat during the COVID-19 crisis. But critics say the structure of the program allowed the haves to scoop up aid meant for the have-nots, shutting out small merchants who were desperate for cash and awarding funds to public companies that could have raised money from investors.
While the government has not yet identified the entities that received the funding under the program, an in-depth analysis of almost 200 recipients by NBC News raises questions about some of them.
The analysis shows three companies with ties to the Trump administration received a total of $18.3 million under the program.
Another recipient received a loan from a bank that previously employed its board’s chairwoman. Four companies received more than the $10 million maximum by applying for multiple loans through subsidiaries. Four other companies receiving more than $20 million in aggregate have wealthy investor board members in common.
Joe Bidens Proposals To Set Up Support For Deserving Small Businesses
Heres what Joe Biden thinks we should do:
Deduction For Entertainment Expenses
Prior to the Tax Cuts and Job Act, business owners could deduct up to 50% of expenses theyâd paid for business-related entertainment. No more: The new tax plan does away with deductions for entertainment expensesâwith some exceptions. Buying food for a client at an event can still be deductible .
Unfortunately, that means a lot of business owners are going to have to start paying taxes on things like box seats and dinners out with clients. Or drop them from their business plans entirely.
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If There’s No Pandemic Downturn Left To Stimulate Can You Still Call It A Pandemic Stimulus That’s The Existential Quandary Of The $10
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If there’s no pandemic downturn left to stimulate, can you still call it a pandemic stimulus?
That’s the existential quandary of the $10 billion State Small Business Credit Initiative , passed in Congress last year as part of a $1.9 trillion pandemic relief package. The Treasury Department only began distributing funding from the initiative — designed to funnel capital to small businesses — this month.
With the economy already on the mend, the question becomes: was the stimulus even needed in the first place?
Highlights From The Biden
The Trump administrations ongoing failure to manage the COVID-19 crisis and corrupt recovery that left behind small businesses has put the U.S. on the verge of an economic disaster. More than 1 in 6 small businesses now risk permanent closure, and many of those that manage to survive the pandemic may ultimately collapse under the weight of enormous pandemic-related debt.
For months, Biden has urged President Trump to get off the golf course and provide immediate relief to struggling small businesses. Biden has released detailed proposals to set up equitable small business support and outlined an ambitious restart package to help them reopen. And he has laid out more than two dozen policies to help small businesses build back better through greater access to capital, expanded procurement opportunities, and targeted resources for veteran-, women-, and minority-owned businesses, among other things. Yet President Trump continues to do nothing.
Small businesses deserve better than President Trump. They deserve a President who appreciates the essential role small businesses play in our economy and communities, and who cares about their long-term success. Biden will be that President. Joe Biden and Kamala Harris are calling for bold, transformational steps to help small businesses around the country from big cities to small towns persevere through the pandemic, recover, and build back better.
Trump prioritized Wall Street by:
Trump neglected Main Street by:
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Who Would Be The Best Small Business President
Its no secret the toll that COVID-19 has taken on small businesses. Many have shuttered forever while countless others try to hang on despite the restrictions put into place by the government to try to stop the spread of the disease.
This combination of pictures created on Oct. 22, 2020 shows President Donald Trump and Democratic … nominee and former Vice President Joe Biden during their debate at Belmont University in Nashville.
One of Joe Bidens main campaign issues has been how poorly, in his view, President Trump has handled the coronavirus pandemic. The former vice presidents campaign website says The Trump administrations ongoing failure to manage the COVID-19 crisis and corrupt recovery that left behind small businesses has put the U.S. on the verge of an economic disaster. More than 1 in 6 small businesses now risk permanent closure, and many of those that manage to survive the pandemic may ultimately collapse under the weight of enormous pandemic-related debt.
Biden says more than 400,000 small businesses have closed and many that remain and their 60 million employees are now struggling to hang on. The former vice president wants to help the 75% of small businesses have been negatively impacted by the current crisis. Over half of small businesses say it will take more than six months to return to normal operations… if they ever fully recover.
Taking Care Of Business
The first three years of Trumps economic policy were marked largely by his approach to trade, which broke with the free trade approach of his White House predecessors.
Both the Virginia Farm Bureau and Virginia Chamber of Commerce endorsed Trumps renegotiation of 1994s North American Free Trade Agreement into the United States-Mexico-Canada Agreement , which went into effect July 1.
The overhaul of NAFTA into the USMCA trade agreement was completely necessary and could not have come at a better time, says Ben Rowe, national affairs coordinator at the Virginia Farm Bureau.
While agriculture as an industry will benefit from the USMCA, it has suffered from Trumps trade war with China, which has seen the U.S. impose tariffs on China for unfair trade practices, including intellectual property theft.
Before Trump, soybeans were Virginias top export. Soybean exports to China, however, fell 83% from 2017 to 2018 due to tariffs that China imposed in retaliation for Trump raising levies on Chinese imports. Soybean prices fell below $8 a bushel in 2019 and had increased only to $9.01 by August 2020 a nearly 50% drop from 2012, when they were $17.58.
Virginias agricultural exports to China fell from $700 million in 2016 to $235 million in 2018. And agriculture is just one front in a trade war that encompasses much of both countries economies.
Business is very important to the economy for everybody, says Sabato, but its a relatively small piece of the overall electorate.
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Choice Competition And Innovation
Brian states that they know innovation is the only way to make things better and more affordable over time.
Choice fuels competition and competition fuels innovation.
As Special Assistant to the President for Economic Policy, National Economic Council Brian is well aware that in health care, innovation has lagged behind the rest of the economy and we have a lot of government rules that restrict choice and competition. He said that they are working to knock down those government rules and loosen them in order to increase choice, increase competition, and increase innovation and productivity in the healthcare sector.
Shake Shack To Return $10 Million Government Loan For Small Businesses
A MiMedx spokeswoman said the loan was “needed to sustain the company’s operations” and would not be used to pay the Justice Department settlement costs. In an email, Petit said he had nothing to do with helping his former company get the government-backed loan.
MiMedx is one of the companies receiving PPP funds with a valuation of at least $100 million.
Cinedigm Corp., a Los Angeles-based entertainment concern, received $2.15 million in small business loans. The company is controlled by a Chinese investment firm, Bison Capital Holding Co. Ltd., and provides digital content distribution in China and the United States. The Trump administration has long complained about policies that benefit Chinese companies.
A company spokeswoman did not immediately respond to a request for comment.
Asked for comment about the first round of PPP funding, Treasury referred NBC News to previous comments by Treasury Secretary Mnuchin and SBA Administrator Jovita Carranza. Mnuchin had said at a White House press briefing that 1 million small businesses with fewer than 10 workers had received support through PPP. In a press release earlier this month, Mnuchin and Carranza said, “The PPP enjoyed broad-based participation across the country from lenders of all sizes and a wide array of industries and businesses. â¦ The vast majority of these loans â 74 percent of them â were for under $150,000, demonstrating the accessibility of this program to even the smallest of small businesses.”
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Why Is Government Regulation Bad For Small Businesses
Many of Federal Regulations Hurt Small Business In the U.S., regulations are estimated to cost as much as $1 per year to small businesses. Nine trillion dollars are lost by productivity, and prices rise by 9 trillion dollars every year. In comparison to large companies with more than 1,000 employees, smaller firms with 50 employees or fewer are almost 20% more likely to pay higher taxes.
End Of The Domestic Products Activities Deduction
Businesses that make and sell products were formerly able to get a tax deduction of 3% of their net income, under Section 199 of the IRS Code. The idea was to give an incentive to engage in “qualified production activities” . But some companies were working the system, so this benefit was eliminated .
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What Trump Administration Is Doing For Small Business
Two years into the Trump Administration the economy is strong, and thats good for business. With two more years to go, how can we expect this administrations policies to work even more for small businesses?
Brian Blase, Special Assistant to the President for Economic Policy, National Economic Council, gives us some answers.
How The Trump Tax Plan Benefits Small Businesses
The impact the Tax Cuts and Jobs Act has on your business depends on how your business is structured. Some entities will be eligible for new deductions and credits, while others will not. Also keep in mind that while some of these changes have been instituted in perpetuity, while others expire as early as 2019, and others last through 2025.
Heres how the Trump tax plan may benefit your business.
So letâs first re-establish the different categories of businesses entities at the center of Trumpâs tax plan:
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Get Help With These Tax Law Changes
Portions of this law are in flux, and other portions are complex. Prepare for tax season by making sure you have excellent records and you can show a business purpose for any expenses. Then take everything to your tax professional. They have the latest changes to regulations and can help make sure you aren’t missing anything important.
Family Leave Tax Credit Until December 31 2020
One of the best benefits of the TCJA is a new family leave tax credit that allows small businesses to get a tax credit for providing family leave to employees, under the provisions of the Family and Medical Leave Act .
This family leave tax credit was extended to December 31, 2020.
To get the credit, your business must have a written family leave paid time off policy and give employees two weeks paid time off. The tax credit is calculated and added to your business taxes for the year. Read more about the tax credit and how to get it.
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What Are The New Tax Breaks For Small Businesses
This Is Not A Financial Crisis Mr Trump Said This Is Just A Temporary Moment In Time That We Will Overcome As A Nation And As A World
During his speech, President Trump said he will ask Congress to pass legislation that would ensure that working Americans impacted by the virus can stay home without fear of financial hardship. Among the proposals:
· Financial aid for workers who are sick, quarantined or caring for family members who are ill
· Postponement of the IRSs tax-payment deadline for some individuals and businesses
· Authorization for the Small Business Administration to offer an additional $50 billion in SBA loans at low-interest rates to help small businesses overcome temporary economic setbacks caused by the spread of the Coronavirus.
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New Additional Tax Deduction For Other Business Types
A new Qualified Business Income deduction is available to small businesses beginning with 2018 taxes. Income taxes for small businesses are called pass-through taxes because the tax paid by the business passes through to the owners’ tax returns. This part of the new tax law gives many small businesses a 20% deduction from net business incomein addition to all other business expense deductions.
Taxpayers at higher income levels may have additional limitations or exceptions. At higher tax levels, professional businesses, for example, are excluded. Only certain types of business income may be included. This new deduction is extremely complex.
There are many limits and qualifications to meet this new deduction. Talk to your tax professional if you think you might be able to take this deduction.