What A Kamala Harris Presidency Could Mean For Small Business

The past few weeks have been a whirlwind regardless of how closely you follow politics. President Joe Biden announced that he was withdrawing from the race for President, sharing from the Oval Office that, “nothing can come in the way of saving our democracy.” Since then, he has endorsed Vice President Kamala Harris as the Democratic party’s candidate and she has secured enough commitments from Convention delegates to become the party’s nominee.

Political observers are now trying to figure out what a “President Harris” would mean for the future. Given her long standing interest in local businesses, a victory in November could mean big things for one community in particular. During her three-plus years in her current role and in the Senate, she has demonstrated a deeper commitment to small business than arguably any other Vice President in recent history. Here are five reasons why a Kamala Harris presidency could be good news for the small business community.

1. Impressive policy wins that support Main Streets and their workers

Vice President Harris has played a critical role in passing and implementing the recovery from the Covid-19 pandemic and the Investing in America Agenda. Both prioritized making communities and Main Streets stronger and preparing them for the future. Early on in the Administration, Vice President Harris cast the deciding vote in passing the American Rescue Plan, a $1.9 trillion package intended to address the Covid-19 pandemic by providing funding for vaccinations, relief to families hit hardest, and support for struggling communities. She also played a critical role in securing the passage of the Bipartisan Infrastructure Law. This unprecedented investment in America’s future has already allocated nearly $454 billion in funding, including over 56,000 specific projects and awards, across over 4,500 communities in all 50 states, Washington, DC, U.S. territories, and tribal governments. This funding has revitalized communities, empowered consumers to shop small again and provided opportunities for small businesses to compete. In each of the last three fiscal years (FYs), the Biden-Harris Administration has increased spending on contracts to small businesses, with small businesses receiving nearly $163 billion in federal contracting dollars in FY 2022, $70 billion of which went to small businesses owned and controlled by socially and economically disadvantaged individuals.

2. Strong track record on small business owners priority need – access to capital

Research by Reimagine Main Street has shown that business owners are not confident in their ability to access capital and that both small employers and non-employers lack confidence in their ability to access financing for working capital and growth. To address this directly, Vice President Harris established the Economic Opportunity Coalition, which was launched in 2022 to address economic disparities and accelerate economic opportunity. One of the many efforts of this coalition of 24 companies and foundations includes a commitment of more than $3 billion of investments into community development financial institutions (CDFIs) and minority depository institutions (MDIs), including $250 million in long-term, low-interest debt and more than $70 million in grants to CDFIs and MDIs. “None of us have achieved success without support because success is almost always a function of some investment,” Vice President Harris said at an event in May.

3. Ongoing spotlight on local small business owners

The Vice President has consistently participated in Small Business Saturdays by visiting one and encouraging consumers to “shop small”. She also tries to visit a small business when she is traveling. During a recent trip to Charlotte, North Carolina, she stopped in to visit Leah & Louise, a locally-sourced restaurant that serves modern interpretations of Southern classics that honor Mississippi river valley foodways from Memphis to New Orleans. “When Vice President Harris arrived, she immediately expressed her admiration for our restaurant. She was interested in our experiences with the Paycheck Protection Program and the Restaurant Revitalization Fund,” owner Subrina Collier shared in a recap of the visit. “I shared our story of resilience during COVID, how these programs were lifelines that kept us afloat, enabling us to pivot to curbside service when the pandemic hit – just as we were about to open our doors for the first time. The Vice President was keen to understand how we were managing and what it meant to be entrepreneurs.” Collier also shared that Vice President Harris took the time to interact with staff and guests and that, “This experience was a reminder of the strength and resilience of the small business community.”

4. An understanding that employers are job creators AND community leaders

We have repeatedly shared in this column about the important role small businesses play as institutions in our society. In both her words and her actions, the Vice President has shown that she understands that small business owners do more than just provide jobs and paychecks. “When I think about our small-business leaders and each of you, I know who you are. You are not only leaders in business, leaders in innovation, entrepreneurs, but you are also civic leaders. You are community leaders. You are role models. You hire locally, you mentor, and you inspire,” Vice President Harris told more than 30 entrepreneurs in a roundtable of “Young Men of Color Small Business Owners” in August 2023.

5. A focus on preparing small business owners for the future

The impact of both climate change and artificial intelligence (AI) will only increase in the future and it is critical that Main Streets have the capacity to transition to clean energy and deploy AI fairly and effectively. Vice President Harris has worked to ensure that the government and the private sector’s use of AI is “safe, secure and responsible” and she played a significant role in shaping the first government-wide policy to mitigate the risks of AI and harness its benefits. The Executive Order “directed sweeping action to strengthen AI safety and security, protect Americans’ privacy, advance equity and civil rights, stand up for consumers and workers, promote innovation and competition, advance American leadership around the world, and more.”

Vice President Harris also cast the tiebreaking vote to pass the Inflation Reduction Act, which includes provisions to help Main Streets and communities shift to clean energy. Recently, she and Environmental Protection Agency (EPA) Administrator Michael Regan announced eight recipients of $20 billion in grant awards from the $27 billion Greenhouse Gas Reduction Fund to provide access to financing for clean-energy and climate-related projects in low-income and under-invested communities This program created through the Inflation Reduction Act creates a financing network that can support Main Streets across America by providing capital for projects that cut emissions, create jobs, and attract additional private investment.

“Imagine, for example, the young entrepreneur who wants to launch a startup to repair electric vehicle chargers, and that person can now get a small-business loan to hire her first employees. Imagine a small-business owner who can now take out a line of credit to buy a fleet of electric delivery vehicles so he can stop paying for gas and reduce pollution at the same time,” said Vice President Harris at the event announcing the funding in Charlotte.

An Impressive Agenda that has Produced More Small Business Start-ups than in Recent History

It is also worth noting that all of these efforts have helped lead to nearly 16 million in new recorded business applications since the start of the Biden-Harris Administration, an unprecedented number. And as mentioned earlier, the resiliency of the small business community is often highlighted during the Vice President’s travel.

In a speech in August 2023, Vice President Harris said, “To the small-business owners and entrepreneurs of America, including those here today: You are the backbone of our communities and of our economy. And you are part of the pride of our nation.” While there is still much uncertainty in how this election will play out, we applaud her commitment to Main Street and elevating the important role small businesses play in the community.