To date, much of the data supporting the belief that inflation is hurting businesses on main street has been anecdotal in nature, but several recent surveys by SCORE and others is providing statistical support to this concern.

The current Russian invasion of Ukraine has caused anxiety, financial impacts, and political actions around the globe. Loss of life and property have been confined to Ukraine so far but, the impacts are being felt around the world economically and logistically in companies large and small.

The US Bureau of Economic Analysis today issued some early-stage results for 2021, and the preliminary results were positive, for a change.  Based on their analysis, 4^th quarter 2021 GDP grew by 6.9%, the largest increase since 1984 (during the Regan Administration).  This far exceeded the estimate of 5.5% made by industry economists.  On an annualized basis, GDP rose by 5.7% vs. a decrease of 3.4% in 2020.  All subcomponents reflected an increase, including nonresidential fixed investment, exports, residential fixed investment, and private inventory investment. Consumer goods and services also increased during the period. 

With the sunset of the Economic Injury Disaster Loan program, there is little, if any, good news for restaurateurs and small business owners about any further Federal Disaster Relief Loan/Grant programs.

There are, however, some private-sector programs that may be available, albeit on a much more limited basis than their federally-backed elders.  These include:

If you are a small business owner who files taxes as a sole proprietorships; partnership; LLC or  corporation and earn more than $600 via online payment platforms, you will soon start receiving a Form-1099-K, “Payment Card and Third-Party Network Transactions” (TPSOs and EPFs).  The information you provide on this form will be sent to your client and the IRS.  As a result, your clients will, in some cases, receive a slew of these forms in early 2023.  Third-party processors such as Venmo, PayPal, Cash App, Zelle, or other vendors, will be providing these forms for you to complete and return. In addition, if you sell products via Amazon, Etsy, eBay, or at craft shows or face-to-face, you will receive the 1099-K. 

For the past few months, we have been watching as Congress negotiates a $3.5 trillion reconciliation bill that if passed would increase taxes and add regulations to businesses at a time when many are struggling to retain staff and to recover from the shutdowns of 2020 due to COVID-19. As negotiations continue, we wanted to present some of the impacts this legislation could have on our local economy.

Unfortunately, the status of this program is somewhat tentative in that the Infrastructure Bill before Congress would strike the program (yet industry groups are advocating for the continuation of the program via the Build Back Better bill).  So, what should businesses contemplating applying for the tax credit do?

Entrepreneurship and small business ownership is the backbone of the economy of this region, the commonwealth, and the nation. The U.S. Small Business Administration reports that small businesses account for over 99% of all businesses in the country.

     “Water, water, everywhere, nor any drop to drink” is a line from the poem, “The Rime of the Ancient Mariner,” written by Samuel Coleridge and published in 1798. Unfortunately, in 2021, it aptly sums up the situation that has been facing small businesses in Hampton Roads when it comes to access to capital. While there are funds available for lending, there is a paucity of resources available for smaller and/or startup businesses.