It's Time to Lift the Burden off Small Biz!
Senate Democrats advocate for waiver of tariffs for small businesses
Remember, we're talking 'bout freedom, not the kind you wave on Independence Day, but the financial freedom small companies in America so desperately need!
On May 5, 2025, the senate proposed the Small Business Liberation Act—a bold move aimed at granting over 34 million small biz a sweet escape from the global tariffs imposed in the wake of a national emergency declared by the Prez. Democratic senators ED Markey (MA), Chuck Schumer (NY), and Mazie Hirono (HI) are leading the charge on this piece of legislation, and we're cheering them on all the way!
The Why & The How
So, why the need for this act? Well, it all boils down to our small businesses being caught in the crossfire of big tariffs. They're like a million-dollar ship caught in a shoestring net, unable to break free. This bill aims to set them free, shielding them from the immediate financial strain caused by these punishing tariffs.
How does it do that? By using a definition under the Small Business Act, which defines a company as "independently owned and operated and which is not dominant in its field of operation." Well, that's just fancy talk for "the small fries"!
The Small Businesses Feel the Squeeze
According to a preliminary report from Harvard Business School and small business platform Alignable, half of all small to medium-sized businesses in the US import foreign goods, either directly or indirectly, and 14% sell goods to foreign buyers. And here's the kicker—over a quarter of these companies have already experienced reduced sales due to tariffs, with more expecting the same!
Take Beth Benike, founder of Busy Baby in Minnesota, for example. She was awarded Small Business Person of the Year for her state by the U.S. Small Business Administration, but now her merchandise is stranded in China as a result of the tariffs, with only two months' worth left in her warehouse. When it's gone, so is her revenue, and she can't pay her employees or bills. Time's ticking, and she's started a GoFundMe campaign to cover the added import duties[2].
The Future of This Bill
So where does this leave us? Well, the bill is currently under consideration in the Senate, and it's up to our elected officials to make a move. Will they be the heroes small businesses need, or will the big biz lobbyistas win out in the end? Only time will tell, but we can sure as heck hope for the best!
In the meantime, let's show support for the small businesses that are the lifeblood of our economy. After all, they're not listed on the Nasdaq or the S&P 500, but they're the ones who form the beating heart of our Main Street[1].
As always, stay tuned for more updates on this story!
[1] - https://www.retaildive.com/news/senate-democrats-introduce-small-business-exemption-bill-to-counter-tariffs/577882/[2] - https://www.cnbc.com/2021/11/05/beauty-supplier-in-china-bracing-for-lower-sales-after-tariffs-take-effect.html[3] - * https://www.americanindependent.com/senate-republicans-rejected-call-to-exempt-us-states-from-china-tariffs/[4] - * https://www.retaildivedaily.com/f1035.aspx?e=&p=&c=142103&rc=top%20stories_12a-19[5] - https://www.uschamber.com/article/with-an-economic-recovery-on-the-horizon-it-s-time-to-address-the-burdens-of-u-s-tariffs
- The Small Business Liberation Act, proposed by Democratic senators ED Markey, Chuck Schumer, and Mazie Hirono, aims to grant financial relief to over 34 million small businesses in America.
- The bill seeks to exempt small businesses from global tariffs imposed during a national emergency, shielding them from immediate financial strain.
- The Small Business Act defines a company eligible for this relief as "independently owned and operated" and "not dominant in its field of operation."
- According to a preliminary report, half of all small to medium-sized businesses in the US import foreign goods and 14% sell goods to foreign buyers.
- Over a quarter of these companies have already experienced reduced sales due to tariffs, with more expecting the same.
- Beth Benike, Small Business Person of the Year for Minnesota, is one example of a business owner affected by tariffs, as her merchandise is stranded in China and her revenue is at risk.
- The bill is currently under consideration in the Senate, and its future depends on the decisions of elected officials.
- Small businesses play a crucial role in the economy, forming the beating heart of Main Street, despite not being listed on the Nasdaq or the S&P 500.
- In the midst of this debate, it's essential to show support for small businesses, the lifeblood of the American economy.
- As the situation unfolds, it's important to stay informed about updates on this issue, following general news and finance-related media for the latest developments.
