Eric Heininger is owner and president of Eden+, a Des Moines-based fundraising consulting firm for nonprofits.
The conclusion of the biennial Iowa State Fair marks the beginning of the sprint toward the November general election. The Iowa State Fair featured plenty of contests, entertainment and, of course, innovative food vendors. It also hosted an on-site hearing by the U.S. House Ways and Means Committee, as lawmakers gathered at the Youth Inn to consider bipartisan policy solutions that could spur growth in the Midwest.
A good starting point for the committee would be for Democrats and Republicans to work together to listen to the needs of small business owners. Challenges like access to affordable child care and addressing rising costs are shared by all Americans. Addressing these issues would certainly create the economic growth that both parties want.
Lack of access to affordable, reliable child care services is creating workforce issues for small businesses, including my own. In a recent survey of small business owners conducted by Goldman Sachs’ 10,000 Small Businesses Voices, the majority reported a lack of affordable child care programs in their communities.
This is notable because, while 58% of companies are continuing to hire, 80% are finding it difficult to fill vacancies, and a third of companies say current employees have been forced to reduce their hours or leave work altogether due to childcare issues.
Affordable child care is a small business issue. Policymakers should unite behind legislation to increase the tax credit available to businesses seeking to find or provide child care for their employees from $150,000 to $500,000. This policy has the support of 70% of small business owners surveyed.
The cost of doing business continues to rise, forcing small business owners like me to make a choice: increase prices to meet the increased costs, or absorb the increased costs and reduce our profit margins. Rising interest rates have significantly increased borrowing costs, making small business loans and lines of credit impossible or expensive to obtain. Lack of working capital forces us to halt expansion plans, hiring, and reinvestment.
Lowering interest rates is not an easy task for Congress or the Ways and Means Committee to tackle, but there are ways lawmakers can come together to help small businesses through periods of inflation. In 2025, lawmakers must act on the tax code. Let’s pass a tax code that helps small businesses grow, and resolve to review and eliminate burdensome and costly regulations.
Both parties agree that small businesses are the backbone of America’s economy. We create jobs, invest in our communities, and thrive in our downtowns. At a time when many Americans like me look to our elected officials to work together to pass policies that will have a positive impact, a good place to start is by looking to the small business owners who are driving economic growth in our towns and cities. Supporting Main Street across party lines is something everyone can get behind.
Eric Heininger is owner and president of Eden+, a Des Moines-based fundraising consulting firm for nonprofits. Contact him at info@edenplus.org.
