Impact of Tariffs on AAPI Small Businesses and Access to Capital

Tariffs and Trade Policy Impact

• 📈 Tariffs and trade policy uncertainty are creating significant pressure on small businesses, leading to rising costs and cancellations.
• 🌶️ A small business owner, Mr. Tice Chilli Oil, experienced a 56% price increase for key ingredients (chilli flakes) and a nearly fourfold cost jump for glass shaker bottles sourced from China.
• 📦 Another exporter faced challenges as the price of specific bottle styles, previously invested in from China, became unaffordable due to these price increases.

Small Business Owner Advocacy

• 🏛️ National ACE organized a trip to Capitol Hill, bringing 60 small business owners to meet with 40 Congressional offices to share their experiences.
• 🤝 Lawmakers from both Republican and Democrat parties were receptive, listening to the personal stories and concerns of the business owners.
• 🗣️ Sharing these real-world experiences is crucial for policymakers to understand the barriers faced by small businesses and ensure trade policies meet their needs.

Access to Capital Challenges

• 💰 Access to capital remains a significant concern for small businesses, particularly since COVID-19.
• 📊 A survey indicated that 47% of applicants relied on personal funds for their business capital, with only 21% using traditional loans and credit.
• 📉 The elimination of programs like the Minority Business Agency's capital readiness program has reduced accessible funding and technical assistance for small businesses.

Labor Market and Resilience

• 🧑‍💼 Small businesses, especially in sectors like restaurants, have faced hiring difficulties and labor shortages since the pandemic.
• 💪 Despite challenges like labor shortages, small business owners in areas like Chinatown demonstrate incredible resilience and find ways to navigate these issues.