TL/DR –
Kevin O’Leary, host of Shark Tank, expressed his concerns about the challenges facing small businesses in the US, citing issues such as rate hikes by the Federal Reserve, increased banking regulations, and lack of support from the Biden-Harris administration. O’Leary notes that 60% of American jobs come from small businesses, yet these entities receive the least support. As potential solutions to the problem, he supports measures such as the Depositor Protection Act of 2023 and the extension of the Employee Retention Credit, while arguing that more government funding should be directed to domestic small businesses.
Concerns For Small Businesses Amid Economic Pressure
Shark Tank host, Kevin O’Leary, recently voiced his concerns about the challenges small businesses face in the current economic climate. Despite public companies laying off due to revenue drops, O’Leary highlighted the specific impact on small businesses.
What Has Kevin O’Leary Worried About Small Businesses?
Emphasizing the pressures small businesses face, O’Leary shared his concerns:
- Small businesses have been neglected by the Biden-Harris administration compared to the support larger corporations have received.
- Inflation caused the Federal Reserve to raise interest rates, making borrowing more expensive and challenging for small businesses.
- Recent regional bank failures have led to stricter regulations, making borrowing difficult for small businesses.
O’Leary stated that small businesses, which provide 60% of US jobs, receive the least support.
Funding Allocated to Major Companies
Discussing corporate funding, O’Leary mentioned the Chips and Sciences Act and The Inflation Reduction Act. He argued that these funds should support local businesses that bolster the domestic economy, not overseas corporations.
O’Leary’s Solutions for Small Businesses
O’Leary proposed solutions:
- Support for the Depositor Protection Act of 2023, which protects commercial deposits of up to $100 million for small businesses.
- Extension of the Employee Retention Credit, a refundable tax credit for small businesses impacted by the pandemic.
O’Leary advocates for more government support for small businesses, highlighting the unfair advantage that large corporations have in receiving aid.
With the majority of the economy made up of small businesses, O’Leary’s call for increased support and relief for this sector is more crucial than ever, particularly as higher interest rates and inflation continue to affect small businesses adversely.
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