How a Trump Presidency Could Impact Small Businesses

As the nation prepares for another Trump presidency, small business owners are analyzing what it could mean for their growth, stability, and day-to-day operations. With a platform emphasizing deregulation, tax cuts, and adjustments to trade policies, Trump’s agenda promises opportunities—but not without challenges. 

Here’s a closer look at how these policies might shape the future of small businesses and what entrepreneurs should be considering.

Deregulation: A Double-Edged Sword

One of the cornerstones of Trump’s economic approach is reducing regulatory burdens on businesses. During his first term, he rolled back significant regulations across sectors like finance, energy, and manufacturing. For small businesses, this meant reduced compliance costs, particularly in banking. By easing some restrictions from the Dodd-Frank Act, smaller financial institutions could lend more freely, which helped boost access to capital for small businesses.

In the energy sector, deregulation allowed for increased domestic production of oil and gas, driving fuel prices down. For businesses reliant on logistics and transportation, this meant lower operational costs. When Trump left office in January 2021, the average price of gas was $2.39 per gallon—a stark contrast to the inflation-driven costs seen under the current administration.

However, deregulation isn’t without its critics. While it can streamline processes and reduce costs, it also removes certain protections related to labor, safety, and the environment. For small business owners, the potential cost savings need to be weighed against long-term risks to their industry and community.

Tax Relief: Incentivizing Growth

Trump’s hallmark 2017 Tax Cuts and Jobs Act (TCJA) brought significant changes to the tax landscape for businesses. By slashing the corporate tax rate from 35% to 21%, it allowed businesses to reinvest more of their earnings. For many small business owners, the introduction of a 20% deduction for qualified business income was a game-changer, putting more cash back into their hands.

Looking forward, Trump has proposed further reductions, including a 15% corporate tax rate and eliminating taxes on tips for service workers. While these moves could boost disposable income for businesses and employees, they also spark concerns about how these cuts would be offset in the federal budget. Increased national debt could lead to higher interest rates, making future borrowing more expensive for small businesses.

Trade Policies and Tariffs: A Mixed Bag

Trump’s trade agenda, particularly his use of tariffs, has a direct impact on small businesses. Higher tariffs on imports are intended to protect domestic manufacturers and create jobs. For businesses producing goods within the U.S., this could improve competitiveness.

However, for those relying on imported materials or goods, tariffs could raise costs significantly. These higher expenses may lead to increased prices for consumers or slimmer profit margins for businesses. Retaliatory tariffs from other countries further complicate the equation, potentially reducing market opportunities for exporters.

Access to Capital: A Critical Consideration

During Trump’s first term, the Small Business Administration (SBA) saw increased activity, with lending rising in his early years. Programs like the Paycheck Protection Program (PPP) provided a financial lifeline during the pandemic, showcasing his administration’s willingness to support small businesses in times of need.

While access to capital is always a hot-button issue for entrepreneurs, Trump has yet to outline specific policies for SBA lending in his current campaign. Still, his track record suggests that small business funding will remain a priority.

Strategic Planning Is Key

Trump’s return to the presidency presents both opportunities and challenges for small businesses. Policies aimed at reducing taxes, streamlining regulations, and encouraging domestic production could lower costs and boost growth. However, these benefits must be balanced against the risks of higher borrowing costs, retaliatory tariffs, and reduced protections in certain sectors.

In times of economic and political change, having a well-crafted business strategy is critical. At Rapid Business Plans, we specialize in helping small businesses navigate uncertain landscapes. 

Whether you’re looking to expand, secure funding, or pivot your operations to align with potential changes under the upcoming administration, planning ahead is essential. At Rapid Business Plans, our expert team works with you to ensure your business is equipped to seize new opportunities and weather any challenges that come your way.

Success starts with preparation. Let Rapid Business Plans help you adapt and thrive in an evolving economic climate—because every big goal begins with a strong foundation.