Remarks Prior to a Meeting With Small-Business Owners

The President. Good afternoon, everyone. We're joined today by five small-business owners who are helping power America's economic recovery.

And I want to welcome the Administrator of the Small Business Administration, Isabella Guzman. Nice to have you, kiddo.

Administrator of the Small Business Administration Isabella Casillas Guzman. Thank you.

The President. And these enterprises and entrepreneurs know that American economy is strong because America's small businesses are strong. Small businesses typically account for more than 40 percent—people don't realize it—40 percent of the gross domestic product of the United States. They create two-thirds of all new jobs. And they employ nearly half—nearly half—of all the private sector workers.

And today, thanks to the economic strategy, more small businesses are being created, and small businesses are creating more jobs faster than ever before. Thanks in large part to the American Rescue Plan, last year, Americans applied to start 5.4 million—5.4 million—new businesses, 20 percent more than any other year on record.

We saw businesses with fewer than 50 workers create 1,900,000 jobs for the first three quarters of 2021 alone. That's the highest rate of small-business creation ever—ever recorded—in a single year. And we have some of the folks right here who did it.

We have every indication that this trend is going to continue. The reason for that is because we're giving people financial security to take a risk and pursue their small-business dreams.

This boom has been particularly strong for entrepreneurs of color. Hispanic entrepreneurs started new businesses in 2021 at a faster rate in more than a decade, 23 percent faster than the prepandemic levels. And you know, the five folks that join me today exemplify what a difference it makes when everyone gets a fair shot.

Jennifer was able to start growing her engraving business last year because of the childcare tax credit and the small-business support of the Small Business Administration. Jeff and Nicolas were—are master coffeemakers—roasters—who—been able to open their first brick-and-mortar cafe last year. And Eddie and Daniel were able to turn their food truck into a brick-and-mortar company of their own. [Laughter] That must be pretty good, huh?

And they're just some of the folks driving this economic recovery and reminding us that everything—that anything and everything is possible in America. And my administration is working tirelessly to open doors for more outstanding entrepreneurs.

You know, unfortunately, Republicans have a different approach. The Republican plan, led by Senator Rick Scott of Florida, chairman of the National Republican Senatorial Campaign Committee, would tax half of our small-business owners an extra $1,200 a year on average. Not only do they oppose making big corporations pay their fair share, they want middle class families and small-business owners to pay more.

Our administration estimates that the Republican proposal would raise taxes on 6.1 million small-business owners, including 82 percent of small-business owners who earn less than $50,000 a year. That just doesn't—that's just not right.

Our administration wants to make it easier to start a business, easier for a small business to succeed. And our plan is to, one, expand access to capital for small businesses; make historic investments in technical assistance programs to help entrepreneurs thrive; and direct hundreds of billions of dollars in Government contracts to small businesses in every community; and level the playing field—and I mean level the playing field—for small business, making sure the largest corporations in America begin to pay their fair share.

And now I'm looking forward to discussing my plan and hearing from these remarkable entrepreneurs. And thank you for being here.