Even as new polling shows a modest uptick in confidence among small businesses, there are questions about what new legislative proposals will be put forth to help build on it.
“We are uplifted by the perseverance and creativity that so many small business owners in California and across the country are showing, the true grit of not giving up, the incredible entrepreneurism and brilliant efforts to stay alive and to help their employees and communities survive as well,” John Kabateck, California state director with the National Federation of Independent Business (NFIB) told the Northern California Record.
The NFIB poll released Feb. 4 showed the number of businesses uncertain about being operational in six months had improved from 25 percent to 15 percent, largely due to the December reopening of the Paycheck Protection Program (PPP).
Still, the renewed optimism and hiring comes amid new and longtime regulatory challenges.
“Small business owners are working hard on their road to recovery, but some industries are still constricted by state and local mandates,” NFIB Chief Economist Bill Dunkelberg said in a news release. “The success of the recovery will depend on if the economy is open and consumers return.”
How that pathway will be forged in California depends in part on what new bills are passed in the current legislative session.
Kabateck noted that the NFIB is trying to endorse policy that complements the recent signs of economic recovery, including the PPP tax conformity in AB 281, introduced by Assemblywoman Autumn Burke, D-South Bay.
Sen. Mike McGuire, D-Healdsburg, also has put forth SB 104, which aims to provide small business tax relief, and the governor’s budget proposal contains an initiative to mitigate the SALT (state and local tax) deduction limitation for S corporations.
“We are also having renewed conversations with policymakers about small business liability reform,” Kabateck said. “We believe that is critical right now – we hear about many small business owners terrified of the next wave of plaintiff attorneys coming down on them with Covid-era lawsuits – when many of them have just been trying to adjust and comply with things at every level of government.”
Business liability protections during the public health crisis have been passed by a number of states either through legislation or executive order.
“There has to be a safe harbor during this chaotic crisis,” Kabateck said. “The policy would provide a responsible and reasonable way to comply and be protected from these unscrupulous attorneys who are more out for a quick dollar than seeking justice.”