Small biz aid is a topic in 2020 campaigns: new ideas floated

     The needs of small business owners rarely make the headlines, but they could win more attention in the coming months as several 2020 presidential candidates have begun introducing bold new ideas for minority and small business contracting, entrepreneurship, technology, education and wealth-building.

      While former Vice President Joe Biden is ahead of other Democrats in the polls, and most Democrat candidates are focusing on big-picture issues like health care, climate change and criminal justice, several are trying to stand out from the crowd by putting forth innovative ideas for small businesses.

      Some of those plans apply specifically to the relatively arcane area of small business federal contracting, while others cover a broader range of small business owners and workers. Some call for new government programs, while others are new regulations.

      While a few of these ideas may not matter much to the general public, they definitely could make a difference for small contractors and entrepreneurs.

      Here are some of the visionary policies being floated that likely would have the greatest impact on small business contractors.

Small contractors and entrepreneurs

      Several Democrats have debuted multi-billion-dollar plans to assist minority and women entrepreneurs and contractors.

      For example, Pete Buttigieg, mayor of South Bend, IN, recently released his “Douglass Plan" to combat systemic racism. One feature is a goal of awarding 25% of federal contracting dollars to “small business owners from underserved communities,” including minority and women business owners.

      Buttigieg’s plan also proposes $25 billion in additional funding for historically black colleges and universities and other schools serving minorities.

      Sen. Elizabeth Warren, D-MA, wants to set up a $7 billion fund to help minority entrepreneurs start small businesses through grants, rather than loans. The grants would go to people with less than $100,000 in assets.

      Even more ambitious is former Rep. Beto O’Rourke’s proposal “to shift at least $100 billion in government contracts away from large corporations to small businesses, with half of that opportunity going to women and minority entrepreneurs,” according to his campaign website.

      O’Rourke says his goal is to assist in opening over 200,000 new women- and minority-owned small businesses by the end of his second term.

Federal contractors

      On the flip side, a few Democrats are proposing new rules for federal contractors.

      For example, Warren plans an executive order to mandate a $15 minimum wage among federal contractors. Several other Democrats support a broad $15 minimum wage for all American workers.

      Warren, along with Sen. Kamala Harris, D-CA, also hope to tackle wage disparities in federal contracting companies.

      Harris said federal contractors within two years will be required to certify that they pay male and female employees equally. “If they don’t, they’ll be barred from competing for federal contracts valued at more than $500,000,” Harris’ campaign website states.

      Small federal contractors that voluntarily comply “will be given extra points in the contracting process,” Harris’ website added.

Green energy

      So-called “green energy” technologies got a boost under the Obama Administration, including a drive to convert federal buildings and military bases to clearner fuels. Many contracts for those efforts went to small firms.

      Several candidates are pledging to revitalize those goals.

      Warren wants to commit $1.5 trillion for the federal government to buy domestic clean energy products, spend $400 billion for clean energy research and another $100 billion to help other countries buy U.S. clean energy technology. The plan would be paid for with a tax on corporations and by ending federal oil and gas subsidies.

      Similarly but on an even larger scale, O’Rourke’s goal is for the government and private sector together to spend $5 trillion over 10 years on clean energy infrastructure.

      Washington Gov. Jay Inslee proposes to spend $3 trillion in federal money over 10 years and to leverage an additional $6 trillion in investment.

      Biden also has proposed spending $1.7 trillion over 10 years on clean energy, which would attract another $5 trillion in private, state and local investments in clean energy.

Student loan forgiveness

      Several candidates want to wipe out student debt. Sen. Bernie Sanders, I-VT, is promoting the idea of canceling $1.6 trillion in student debt for 40 million Americans, which would release many young and not-so-young entrepreneurs from the burden of paying down student loans. That would presumably lead to more new small businesses being formed. The loan forgiveness would be paid for by taxing Wall Street trades.

      Warren released a similar plan in April, which would cancel up to $50,000 in student loan debt for every person with a household income under $100,000. There’s a sliding scale for higher incomes, including $40,000 that could be eliminated for people with incomes up to $130,000. Her plan would be financed with an annual 2% tax on wealth above $50 million and a 1% tax on wealth more than $1 billion.

      Other Democratic candidates have voiced support for similar proposals.

Benefits for working families

• Free tuition: Obama previously proposed two years of free college for everyone, and BIden has expanded that to four years. Sanders, Warren and a few other Democratic candidates are on board with free or reduced tuition as well.
• Renters tax credit: Sen. Cory Booker, D-NJ, has an ambitious plan to create new tax credits for renters that would help keep rents below 30% of the renters’ income. He estimated it would reach 57 million Americans and cost $134 billion a year.
• Black home ownership: Harris proposes to spend up to $100 billion to help black people buy homes, with the goal of correcting the longstanding injustices of redlining. The plan would provide up to $25,000 for down payments for up to 4 million people.
• Child care: Warren’s plan for Universal Child Care would help families with child care expenses. Families earning up to 200% of the poverty line would have access to free child care, while those earning more would pay on a sliding scale topping out at 7% of a family’s income.

Small biz aid is a topic in 2020 campaigns: new ideas floated

SCORE in trouble

HUBZone firms share wish list

Where is Carranza?

Credit for lower-tier subs

Column: How Do You Effectively Manage a Capture Management Consultant?

Washington Insider: