Three Executive Orders that Can Affect Small Businesses in 2022
President Trump has signed a number of executive orders since the day he took the office. While most are political, some of them will have direct effects for small businesses. Here are some of the executive orders that will affect small business in 2022 and how business owner should prepare for that.
USPS Privatization
US Postal Service privatization is the most recent executive order small business signed by the President. Actually the President didn’t directly say that this unique government entity will be privatized. However, the President requests the finances of the US to be reviewed, which raises the opinion that the government is considering to stop funding the operation of USPS and privatize it.
If USPS privatization really comes true in the future, small business will be heavily affected. Since the operation of US Postal Service is still funded by the government, it is able to offer much lower shipping fee compared to the other shipping companies. It helps fostering online businesses since the shipping fee doesn’t burden the customers. If USPS is privatized, it doesn’t have any choice but to increase its shipping fee. Without the competitive pressure USPS brings to the industry, the other shipping companies will not hesitate to increase its shipping cost, which in the end of the day, will burden the customers.
Reducing Regulations and Regulatory Costs
According to this EO, for every new regulation introduced, two old regulations will be removed. This executive order small business actually has a noble goal that is to cut regulations that pose burden for small business. Unfortunately, it is hard to predict which regulations will be removed in sake of introducing the newer one.
Changes in Federal Budget
March last year, a blueprint for the 2022 budget from the current administration was released. According to the blueprint, other than military and social security, the spending of all aspects of government will be cut. It is predicted that the Small Business Administration will lose at least $42 million of funding as a result of the changes in federal budget.
It is certainly a red light for small business owners and those planning to start a small business. This is because the Small Business Administration has microloan programs that are directed to help small business. Due to budget change, it is predicted that the funding for this program will be cut by 20 percent. SBA also has some other developmental programs and agencies for small businesses such as PRIME and some business innovation coaching. With 20 percent budget cut, it is hard to see the future for those programs.
Trump once promised to help small business and also empower women in business. Unfortunately, based on the executive order small business that has been signed, it seems like starting and running small business in America is still very challenging. Those new regulations actually have some positive impacts. Unfortunately, it is only for short term. At this point, it is still difficult to point out whether the President’s orders are able to help small business owners in the long run.