Donald Trump’s return to the White House brings a renewed focus on economic growth, low taxes, and deregulation. For small business owners, his prior administration provides a glimpse into what they might expect in his new term, from tax policies and regulatory reform to changes in healthcare and trade. Below, we’ll look at Trump’s past actions for small businesses and what those might mean for the years ahead.

Trump’s Past Actions for Small Businesses: A Quick Recap

During his first term, Trump implemented several key initiatives that benefited small businesses, including:

1. Tax Relief through the Tax Cuts and Jobs Act (2017)
   One of Trump’s most significant achievements for small business owners was the 2017 Tax Cuts and Jobs Act. The legislation reduced the corporate tax rate and allowed a 20% deduction for qualified business income for pass-through entities, benefiting small business owners who file their business income on personal tax returns. These cuts allowed small businesses to keep more revenue, reinvest, and expand their operations.
2. Deregulation for Lower Compliance Costs
   Trump’s “two-out, one-in” regulatory policy required that for every new federal regulation, two existing regulations were eliminated. This led to reduced regulatory burdens across industries such as energy, construction, and finance, saving businesses time and money on compliance.
3. Affordable Healthcare through Association Health Plans (AHPs)
   Recognizing the challenge of high healthcare costs, Trump expanded Association Health Plans (AHPs), allowing small businesses to band together to buy health insurance at reduced rates. This policy made healthcare more affordable for small business owners and gave them options similar to those available to larger companies.
4. COVID-19 Relief through the Paycheck Protection Program (PPP)
   During the COVID-19 pandemic, Trump’s administration established the Paycheck Protection Program (PPP), providing forgivable loans to help small businesses retain employees and cover essential expenses during lockdowns. This program saved many small businesses from closure, particularly in hard-hit sectors like hospitality and retail.
5. Trade Policies to Boost Domestic Production
   Trump’s trade policies, including tariffs on imported goods from certain countries, aimed to reduce dependency on foreign products and incentivize domestic production. While this presented challenges for businesses relying on imports, it created opportunities for companies focused on U.S.-based manufacturing.

These actions underscored Trump’s commitment to reducing the financial and operational burdens on small businesses. His approach emphasised tax relief, streamlined regulations, and support for domestic industry—all initiatives that many small businesses benefited from during his first term.

What Small Business Owners Can Expect in Trump’s New Term

With this record as a foundation, Trump’s new term is likely to build on these themes. Here’s a breakdown of what small business owners might anticipate:

1. Continued Tax Cuts and Financial Relief
   Trump’s administration is expected to maintain or even expand the tax cuts from his first term, focusing on keeping the tax burden low for small businesses. This means that businesses operating as pass-through entities may continue to benefit from tax deductions, and corporate tax rates are likely to remain favourable.
   • What This Means: Low taxes allow small business owners to reinvest in their companies, hire new employees, and potentially expand into new markets, boosting local economies.
2. Further Deregulation Across Key Sectors
   Trump’s return could mean a renewed emphasis on deregulation, particularly for industries like energy, construction, and finance. By further reducing compliance requirements, Trump aims to make it easier and less costly for businesses to operate, giving them more flexibility.
   • What This Means: Small businesses can expect a less complicated regulatory landscape, especially those in sectors with traditionally high regulatory burdens, allowing them to focus more on growth and innovation.
3. Healthcare Flexibility through Expanded AHPs
   The high cost of healthcare has been a persistent issue for small business owners, and Trump’s AHPs offered a way to provide coverage at a lower cost. His administration may expand options for AHPs, making it easier for small business owners to offer benefits and attract talent.
   • What This Means: Small businesses may have greater options in health coverage, though ongoing debates around healthcare policy could bring additional changes or requirements.
4. Immigration Policies and Workforce Availability
   Trump’s stricter stance on immigration affects industries that rely heavily on immigrant labor, such as agriculture, hospitality, and technology. However, his administration may support policies that train American workers for roles in these industries, potentially offsetting labor shortages.
   • What This Means: Small businesses in labor-intensive fields may face challenges if immigration policies tighten. Workforce development programs could help, but businesses should prepare for potential shifts in labor availability.
5. Domestic Manufacturing Incentives through Trade Policies
   Trump’s “America First” stance may include trade policies that encourage domestic manufacturing and reduce reliance on foreign imports. While this could mean higher costs for small businesses that rely on imported goods, there may be incentives for those investing in domestic production.
   • What This Means: Small manufacturers could benefit from government incentives to produce goods locally. However, businesses dependent on foreign imports may need to explore alternative supply chains or local sourcing options.
6. Access to Capital and SBA Support
   Trump’s policies traditionally supported small business funding through the Small Business Administration (SBA), and this focus is likely to continue. SBA loan programs and incentives may see expanded funding, encouraging entrepreneurship and supporting small business growth.
   • What This Means: Easier access to loans and grants could empower small business owners to innovate, scale their operations, and navigate economic changes more effectively.

Conclusion: A Mixed Bag of Opportunities and Adjustments

For small business owners, a Trump White House brings both opportunities and challenges. Low taxes, fewer regulations, and access to capital could create a favourable business climate, while trade policies and immigration restrictions may require some adaptation. Small business owners can look forward to financial benefits but should also consider diversifying their strategies to navigate potential changes in labour and supply chains.

Staying informed about policy developments and working with financial advisors can help small business owners make the most of the evolving economic landscape. A proactive approach will be key to leveraging the opportunities Trump’s policies may offer while adapting to any challenges that come with them.