September 6, 2024, Philadelphia, PA – On September 6, Vice President Kamala Harris unveiled a new set of proposals aimed at bolstering small businesses owned by Asian Americans, Native Hawaiians, and Pacific Islanders (AANHPI). This announcement is part of Harris’s broader agenda to create an Opportunity Economy and continues the significant progress made under the Biden-Harris Administration in supporting AANHPI small businesses.
Key Highlights of the Proposals:
- Expansion of Startup Expense Tax Deduction: Harris proposed increasing the small business tax deduction for startup expenses from $5,000 to $50,000. This measure is designed to help entrepreneurs meet the average $40,000 cost of starting a business and allows new businesses to claim this deduction in profitable years or defer it to future years, thereby easing their tax burden.
- Reduction of Regulatory Red Tape: To facilitate smoother operations for small businesses, Harris outlined plans to cut excessive regulatory barriers. This includes creating a standard deduction for tax filings to save time and money and reducing the hurdles related to obtaining occupational licenses across state lines, making it easier for businesses to expand.
- Ambitious Goal for New Business Applications: Harris set a goal of 25 million new small business applications during her first term, surpassing the 19 million applications achieved under the Biden-Harris Administration. This ambitious target aims to stimulate entrepreneurial activity and economic growth.
- Small Business Expansion Fund: The Vice President introduced a Small Business Expansion Fund to support community banks and Community Development Financial Institutions (CDFIs) in covering interest costs for expanding businesses. The fund will focus on regions with historically low investment, including rural and middle America, to drive job creation and economic development.
- Increased Federal Contract Opportunities: Harris committed to ensuring that one-third of federal contract dollars are allocated to small businesses, particularly those in underserved and rural areas. This initiative is designed to further support AANHPI businesses and boost investment in previously overlooked regions.
These proposals reflect Harris’s ongoing commitment to addressing the needs of AANHPI families and small businesses. Under her leadership, the Biden-Harris Administration has already achieved a record $55 billion in federal contracts for AANHPI-owned businesses and created over 2 million jobs for AANHPI communities, resulting in the highest employment rate for this group since 2008.
The new plan aims to continue this momentum by removing barriers to entrepreneurship and expanding opportunities for all Americans. This announcement marks a significant step in supporting and invigorating small businesses nationwide, with a particular focus on underserved communities.
