Welcome to the Small Business Run Down. Each day, we bring you stories and trends that impact small business owners and their workforce.
Today, we look at how infrastructure issues are hitting small business owners, a rise in the minimum wage in Connecticut and a new milestone for PayPal.
Fixing the nation’s infrastructure is something just about everyone agrees is a priority. Now if we could only do it. Small businesses are reporting that the infrastructure issues are weighing down their profits, and making it harder to service clients. In fact, 62% of business owners said local roads and bridges are very poor to average.
The Number: $2 trillion. The estimated costs to repair the country’s infrastructure needs.
The Quote: “Significant changes to our infrastructure could reduce our expenses as much as 35 percent and help increase revenue by 25 percent.”
On Tuesday, Connecticut’s governor signed a gradual increase of the state’s minimum wage up to $15 an hour. The Westport News asked local business owners how they felt about the change. Most agreed it’s good to pay more workers, but some questioned the impact on small businesses,
The Number: $4.90. The difference between the current minimum wage and the scheduled $15-an-hour increase is $4.90. The increases come in increments with the first in October and then a $1 increase every year until 2023.
The Quote: “With that, small business tax breaks and incentives should be added as well. Every small business owner I know wants to pay their staff more.”
PayPal is becoming a major force in lending to small businesses. The fintech company announced it’s issued more $10 billion to 225,000 small businesses to date.
The Number: 0.7%. Loans to SMBs represents just 0.7% of U.S. banks balance sheets.
The Quote: “Since the great recession, the traditional lenders have really slowed down and pulled back from small business lending. Small business lending never recovered like commercial lends.”
Pop quiz: Do you know what ERISA law means? Or how it can impact your business? Don’t worry so much. We’ve got a quick guide to ERISA to sort you out.