Small businesses are having a tough moment right now.
President Donald Trump’s early actions in office have significantly altered the business landscape, with policies such as funding freezes, new tariffs, and a clampdown on certain diversity initiatives. While some of these initiatives have been challenged in court, many small businesses are feeling the strain, grappling with rising costs, higher interest rates, and more cautious consumers. These businesses, often with limited resources to navigate the shifting political landscape, are warning that these changes are doing more harm than good.
David Funk, the founder of Zero Emissions Northwest, based in Spokane, Washington, expressed frustration after the U.S. Department of Agriculture rejected his company’s $65,000 invoice for work completed since October. His business helps farmers access federal grants for equipment purchases and energy subsidies. Funk soon learned that his invoice was denied due to the Trump administration’s “Unleashing American Energy” order, which suspended projects funded by the Inflation Reduction Act. The fallout has been significant, with Funk forced to furlough his employees and clients left struggling with equipment they can no longer afford. Funk, who has supported Trump in the past, said it was a bitter realization that the administration’s policies were directly impacting his livelihood.
The uncertainty surrounding federal funding also affects businesses like Sumnu Marketing in Las Vegas. Shaundell Newsome, the founder of the agency, explained that despite recent clarity on funding for his internship program, ongoing federal directives have left him with more questions than answers. Without the Labor Department’s support, his agency may have to make tough decisions, including cutting the internship program that provides invaluable opportunities for local youth.
While many small business owners remain optimistic, surveys from the National Federation of Independent Business show that uncertainty is at an all-time high. A significant number of businesses are curbing their investment plans, worried about economic instability caused by ongoing policy changes. These concerns are compounded by the difficulty smaller businesses face in lobbying for favorable policies, unlike larger corporations that have the financial and political clout to influence the White House.
Despite this, some entrepreneurs remain hopeful that the administration will make adjustments to benefit small businesses. For example, Beatrice Barba, who owns a children’s goods e-commerce business in the San Francisco Bay Area, has been cautious in her purchasing decisions. Barba, who relies on Chinese suppliers for materials, has reduced her inventory order in light of Trump’s 10% tariffs, unsure if the policy will change or persist. She believes that with the right support, such as loans for U.S.-based manufacturing or tariff exemptions for small businesses, the administration could better support entrepreneurs like her.
As the effects of Trump’s economic policies continue to unfold, small business owners remain in limbo, adjusting their strategies in the face of uncertainty. Whether it’s tightening their belts or navigating the complexities of federal regulations, many are taking proactive steps to protect their businesses, hoping that the White House will offer clearer guidance and support in the months ahead.