AGP Executive Report

SBA Disaster Aid: The U.S. Small Business Administration opened a Disaster Loan Outreach Center in Kihei, Maui, starting June 15, with walk-in help for storm- and flood-impacted businesses, nonprofits, and residents, plus other Hawaii locations. Health Care Costs for Small Employers: A federal court blocked the Trump-Vance “Marketplace Integrity and Affordability” health rule, keeping ACA protections in place—good news for workers at small firms relying on marketplace coverage. ACA Enrollment Drop: New data shows marketplace enrollment fell by 1.2 million during the 2026 open enrollment period after expanded subsidies expired, raising costs for many self-employed and small-business workers. Workforce & Compliance Tech: isolved added new strategic partners to its People Cloud marketplace, aiming to help small employers streamline HR, benefits, and global hiring. Local Business Boost: Athens, Ohio’s AMBL Studios won an Amex Shop Small grant to buy a laser cutter and expand its fabrication and retail side. Competition in Food Supply: Sen. Chuck Schumer pushed a bill to break up big meatpackers, arguing it could lower grocery prices and support farmers and small meatpacking operators. Payroll Costs & Options: A roundup highlighted popular payroll providers for SMBs, comparing pricing and features like multistate filings and HR support. Remittance Tax Pressure: The Money Services Business Association urged the IRS to revise proposed remittance-transfer tax rules that could add heavy compliance burdens for small payment providers and their customers. Small Business Operations Hit by Policy: Chicago is reconsidering video gaming machine rules after the Illinois Gaming Board approved initial applicants—an issue for bars and restaurants watching local licensing and tax impacts. Energy Reliability Warning: One report warns the Eastern power grid may face emergency peak capacity shortfalls by June 2027, pushing SMBs to plan for outages.

SBA & Federal Contracting Shake-Up: The SBA is proposing major changes to its 8(a) program, including removing the “social disadvantage” presumption for individually owned applicants—an overhaul that could reshape who qualifies for set-aside contracting. Health Care Cost Pressure: California small businesses are getting squeezed by fast-rising employer healthcare costs, with premiums climbing far faster than inflation—raising fears for business survival and coverage stability. Local Solar Fight: California’s CPUC advanced a community solar plan critics call “unworkable,” arguing it effectively hands control back to utility pricing that blocks new projects. Fraud Crackdown: Coordinated federal action led to arrests tied to fraudulent COVID-19 relief loans, including SBA PPP and EIDL schemes. Cybersecurity for SMBs: Federal warnings say Russian hackers abused small office/home routers to steal logins—another reminder to lock down network gear. Business Real Estate: BKM Capital and Kayne Anderson bought a 281-property, 8.5M sq. ft. light industrial portfolio in a major LA-area deal. Travel Perks for Owners: Delta’s SkyMiles Platinum Business card review highlights checked-bag and priority perks plus a companion certificate, aimed at frequent flyers without lounge access. Local Business Boosts: Seattle launched a “Buy Black Card” prepaid discount to drive spending at Black-owned businesses during major sports events. Energy Reliability Warning: A new report warns the Eastern grid may face emergency peak power shortages by June 2027, pushing SMBs to plan for outages.

Affordability Pressure: A new report on May inflation and jobs adds to the squeeze on small businesses and households as gas-driven prices push costs higher while hiring plans weaken. Local Business Boost: Seattle launched the “Buy Black Card,” offering a 20% prepaid discount at nearly 150 Black-owned businesses to help them ride out rising operating costs and big sports-weekend demand. Small-City Startup Climate: Pacifica, Calif. is fighting back after a WalletHub study ranked it last for starting a business, launching “Project 1334” with a lemon-themed campaign to turn the insult into momentum. Food Supply & Processing Capacity: USDA announced a Small Processors Action Plan to expand access to locally processed meat, aiming to reduce backlogs and travel burdens for rural cattle producers as beef prices hit historic highs. Cybersecurity for SMBs: The FBI warned that Russian-linked hackers abused home/office routers and that scammers also impersonate IT support—both are reminders for small firms to lock down devices and remote access. Fraud Crackdown: DOJ and the FBI arrested seven men tied to fraudulent SBA PPP/EIDL COVID relief loans totaling about $205,639. Policy Watch (8(a)): SBA proposed changes to its 8(a) social disadvantage standard for individually owned firms, while DoD reaffirmed tribal and Alaska Native corporation eligibility is rooted in political status, not DEI. Energy Reliability Risk: A warning about the Eastern grid’s shrinking emergency capacity by 2027 raises stakes for small businesses planning for outages and higher demand.

SBA 8(a) Overhaul: The SBA proposed changes to its 8(a) program that would end race-based presumptions of social disadvantage for individually owned firms, while saying eligibility for tribes and Alaska Native corporations would stay intact. Tribal Eligibility Reaffirmed: The Defense Department reiterated that tribal and ANC participation is grounded in political status under federal law—not DEI—bolstering Native contracting expectations. COVID Relief Fraud Crackdown: Coordinated federal and local enforcement led to seven arrests and indictments tied to fraudulent PPP/EIDL applications totaling about $205,639. Energy Costs Pressure SMBs: In Colorado, a proposed settlement would still cut Xcel’s electric rate hike by 37%, but would remain the biggest utility jump in state history—an issue for residential and small-business customers. Trade Policy Update: A federal appeals court allowed the Trump administration to keep collecting a 10% global tariff while legal challenges continue, with refunds possible if tariffs are later ruled unlawful. Cybersecurity Warning for SMBs: The FBI warned of scammers posing as IT support to trick businesses into installing remote access tools and stealing data. Local Business Support: Iowa Sen. Joni Ernst highlighted Leah Jean Boutique as “Small Business of the Week,” spotlighting Main Street retail and community involvement.

Tariffs in court: A U.S. appeals court let Trump’s 10% global baseline tariff stay in place while legal challenges continue, with the government arguing it could cause “irreparable harm” to trade policy if paused—raising costs for small importers and manufacturers even as refunds remain possible. SBA rule changes: The SBA proposed major reforms to its 8(a) program, aiming to remove the “rebuttable presumption” of social disadvantage for individuals tied to certain groups, while saying the shift won’t directly affect tribes and Alaska Native corporations. Cybersecurity warning: The FBI says a scam group is impersonating IT support to trick employees into installing remote access tools, then showing up in person to copy files and plant malware before ransom demands. COVID relief fraud crackdown: Seven men were arrested and indicted across three states for allegedly using fake documents to obtain SBA PPP/EIDL funds, totaling about $205,639. Local business support: Kansas Sen. Roger Marshall toured manufacturers and biosecurity/ethanol-related firms in eastern Kansas, highlighting deregulation and pro-business tax proposals. Small business community: The SBA and Office of Advocacy praised actions to reopen Pacific fishing grounds for U.S. boats, a move framed as helping small, family-owned fishing businesses compete.

Federal Contracting Shake-Up: The SBA says it will propose major changes to the 8(a) Business Development Program, removing the “socially disadvantaged” presumption for individuals tied to designated groups, while saying the shift won’t directly hit tribes and Alaska Native corporations. Procurement Push for “American-Made”: After a White House Small Business Summit, the SBA and GSA moved to remove nearly two dozen foreign product listings from GSA Advantage! over concerns about misleading “Made in America” claims. Payments Cost Pressure: A new report highlights how card processing fees are climbing fast, and a payments startup argues it can help small businesses pay less than today’s dominant options. World Cup Disruption Watch: Host cities across Canada (and nearby U.S. areas) are bracing for crowding, traffic, noise, and safety concerns that could disrupt local small businesses. Local Growth & Awards: SBA-backed recognition continues in rural communities, including an Iowa “Small Business of the Week” spotlight on Leah Jean Boutique, plus Pennsylvania downtown funding for Jamestown, Falconer, and Hamburg. Broadband Funding: New York’s ConnectALL awards total $8.3M to expand affordable internet access and digital equity, including support for low-income and rural areas.

Tariffs & refunds: A federal appeals court let Trump’s 10% global tariffs stay in place for now, even as legal fights continue—while Senate Democrats pressed CBP to finally refund more than $145B in unlawful tariff charges to small businesses. SBA access squeeze: The SBA stopped approving loans for some green-card holders, leaving entrepreneurs like a Los Angeles spa owner unable to qualify under new rules. SBA disaster relief: SBA Economic Injury Disaster Loans are now available for Rhode Island blizzard impacts and for Utah’s drought-hit Summit County businesses and nonprofits. Federal procurement crackdown: The SBA and GSA are removing nearly two dozen foreign products from the federal marketplace over concerns about misleading “made in America” claims. Broadband push: New York’s ConnectALL awards total $8.3M to expand affordable broadband and digital equity, including service to 21,000+ locations in Genesee County. Local jobs: Austrian skincare firm Ringana plans a Roanoke HQ investment creating 435 jobs. Supply chain logistics: DOT unveiled a plan to pre-screen import containers to speed freight processing. Business risk: Fidelity reported widespread trading and login outages, disrupting customers during market hours. Workforce training: Meta’s trades training program is expanding paid pathways into skilled jobs.

SBA & immigration rules: The SBA stopped approving loans for green-card holders under a new policy that limits eligibility to fully U.S.-citizen ownership, tightening access for immigrant entrepreneurs who previously relied on SBA funding. World Cup disruption for small businesses: New York City is restricting Midtown deliveries during World Cup match days, with truck bans that can last up to 11 hours, and taxi drivers warn roadblocks and gridlock could further cut trips and sales. Tariffs still on the table: A federal appeals court let Trump’s 10% worldwide tariffs keep being collected while legal fights continue, a procedural win that keeps pressure on import costs for small businesses. Disaster relief updates: The SBA rolled out low-interest disaster loans for drought-hit South Carolina and for multiple weather events in California, Illinois, New Jersey, and Rhode Island, offering working-capital help even without physical damage. Federal contracting shake-up: The SBA proposed major changes to the 8(a) program, ending race-based “social disadvantage” admissions and requiring applicants to prove eligibility with verifiable facts. Local business support: Palm Bay, Florida opened a new no-cost Small Business Development Center office at UCF, expanding counseling, training, and market research for entrepreneurs.

SBA Contracting Shake-Up: The SBA proposed ending the race-based “socially disadvantaged” admissions framework for the 8(a) Business Development Program, requiring applicants to prove eligibility with verifiable, fact-based support—aimed at equal access to federal set-asides. Tariff Refund Pressure: Senate Democrats say the Trump administration still hasn’t refunded more than $145B in tariffs ruled unlawful by the courts, demanding CBP pay small businesses what they’re owed. Workforce Funding: Massachusetts announced $17.9M in grants for 1,255 businesses to train and retain 15,900 workers, with plans to add 1,000+ jobs. Local Contract Wins: Long Beach’s Port awarded $54.4M in small business services and materials contracts, nearly 45% of eligible spending. Small-Business Lending Tech: VizyPay is embedding faster loan applications via a Jaris partnership inside its payments app. World Cup Boost for Main Street: SumUp survey finds fans prefer local bars/restaurants over chains and will spend more—if SMBs run the right promotions.

Fraud & Enforcement: A former St. Louis nonprofit circus board president, George S. Pace, was sentenced to 22 months in federal prison and ordered to repay $130,905 after admitting he diverted organization funds for personal spending. Consumer Costs: U.S. inflation hit a 3-year high as May consumer prices rose 4.2% year over year, driven in part by higher gas prices—squeezing household budgets and complicating small-business planning. Policy Watch: Pennsylvania’s House passed a digital advertising tax that would expand its gross receipts tax to cover digital ads sold by big tech platforms, setting up a Senate fight that could affect marketing costs for small sellers. Workforce & Energy: A report warns the oilpatch will need about 72,000 workers by 2035 (mostly to replace retirees), while energy-price pressure continues to ripple through the economy. Small Business Support: The SBA proposed changes that could let more firms qualify for the 8(a) program by tying eligibility to harm from DEI-related policies. Local Food Access: USDA’s SNAP rule would require retailers to stock more varieties of perishable foods—raising compliance burdens for smaller rural stores that risk losing authorization. Legal Risk for SMBs: A judge signaled FDA nicotine pouch rules may be flawed, and a separate case highlights how patent “second bites” in the USPTO’s IPR system can be rejected. Community & Inclusion: QuickBooks shared practical ways small businesses can support the LGBTQ+ community year-round beyond Pride-month marketing. Cyber/Payments Risk: Command Credit launched CommandInsight to help small businesses check rising payment risk. Grid Reliability: One report warns the Eastern power grid could face emergency peak shortages by June 2027, pushing SMBs to prepare for outages.

Disaster Loans Deadline: SBA is reminding Arizona businesses and private nonprofits (plus Salt River Pima-Maricopa and San Carlos Apache tribes) that the July 10 deadline is coming for low-interest disaster loans tied to the Sept. 25–27, 2025 Gila County flooding. More Storm Relief: SBA also announced low-interest disaster loans for Idaho counties hit by Dec. 16–18, 2025 straight-line winds, with options for physical damage repairs and mitigation upgrades. Hawaiʻi Recovery Timing: Hawaiʻi County says FEMA individual assistance and SBA physical-damage loan applications for this year’s kona low storms must be filed by Sunday, June 14. Inflation Pressure: New data shows May inflation at 4.2% year over year, driven by higher gas prices—bad news for household budgets and small-business demand. Tariff Refunds Watch: A USA Today review finds many big firms plan to seek tariff refunds, but only a few say they’ll return money to customers. Brand Protection Tool: Trademark Engine launched an AI app to help businesses search, prepare, and file USPTO trademarks, aiming to cut filing errors and speed up the process. Shop-Small vs. Spend-Less: Constant Contact reports more people say they shop mostly at small businesses, but many are cutting spending due to rising costs.

Small Business Sentiment: NFIB says small business optimism fell in May to the lowest level since Oct. 2024 as inflation, fuel costs, and supply chain disruptions keep squeezing margins, with fewer owners planning capital spending. Trade & Security: U.S. Customs and Border Protection highlighted how CTPAT helps trusted small businesses cut inspections and speed border processing while strengthening supply chain security. Fraud Crackdown: DOJ says two contractors and executives will pay $21.3M to resolve False Claims Act allegations tied to federal contracts reserved for service-disabled veteran-owned small businesses. Disaster Relief: SBA announced low-interest disaster loans for drought-hit Mississippi businesses and private nonprofits, with Economic Injury Disaster Loans available for working capital losses. Policy Watch: Rep. Johnny Olszewski introduced a bill to require annual reporting on small business participation in federal contracting programs, aiming to boost transparency around certifications and approvals. Local Business Pressure: Mesa, Arizona’s flight school landing-fee plan is headed to a federal lawsuit as the FAA urges the city to pause. Energy Reliability: A report warns the Eastern power grid could run out of emergency peak capacity by June 2027, raising blackout risk for households and businesses.

Franchise Enforcement: New York AG Letitia James secured a record $3.97M settlement from Xponential Fitness over claims it misled franchise owners about opening timelines, highlighting how small operators can get burned by franchise sales tactics. Payments Pressure: A judge gave preliminary approval to a revised $38B Visa/Mastercard settlement, but retailers say swipe-fee costs are still squeezing margins and won’t fully fix the underlying problem. Fraud Crackdown on Veteran Set-Asides: DOJ says two NY electrical contractors and executives will pay $21.3M to resolve False Claims Act allegations tied to using ineligible pass-through service-disabled veteran-owned small businesses. Cyber Help in Congress: Rep. Lateefah Simon introduced a bill to study and improve federal cybersecurity assistance for small businesses, aiming to identify gaps and boost effectiveness. Small-Business Sentiment: NFIB reported May optimism fell and more owners plan to raise prices, pointing to inflation staying sticky. Local Support & Grants: American Express’ Shop Small® grants put $20,000 into A&A Equipment Repair, while Wisconsin’s SBIR Advance program awarded matching funds to help innovators commercialize. Workforce Pipeline: Meta announced $115M for free training to enter data-center skilled trades, starting in several states.

Small Business Disaster Relief: SBA is offering low-interest drought disaster loans to small businesses and private nonprofits in parts of Oklahoma and Kansas, with Economic Injury Disaster Loans aimed at covering operating costs when drought impacts cash flow. Food Supply Chain Support: USDA launched a Small Processors Action Plan and added $60M for the Meat and Poultry Processing Expansion Program, targeting small and very small plants with faster help and clearer appeals while keeping food-safety standards. Fraud Crackdown: A federal case charges an Orlando man with mortgage and COVID-19 relief fraud, including false income on a mortgage application and overstated payroll for PPP/EIDL. Consumer Payments Pressure: In Cebu, fragmented digital payment systems are adding hidden bookkeeping and reconciliation costs for micro, small and medium businesses. Local Business Growth: Colorado’s SBDC network received $1.81M in federal funding to advise thousands of businesses and help secure capital. Retail Theft Enforcement: Suffolk County expanded a Retail Protection Partnership after charging 18 serial shoplifters tied to $110K+ in losses. Tech/Policy Watch: CFPB is being sued over a fair lending rule change under ECOA, with a July 21 effective date.

Federal Funding for Advisors: Colorado’s SBDC network won $1.81M in SBA-backed federal funding to keep no-cost advising and training running statewide, serving all 64 counties and helping clients secure $75M in capital last year. Disaster Relief: SBA opened low-interest disaster loans for Oregon businesses and nonprofits hit by late-2025 storms and flooding (up to $2M for businesses; homeowners up to $500K). Small-Business Cash Pressure: Bankruptcy filings rose 7% year over year in May, with small business filings up 36%, pointing to higher costs and tighter credit. Cyber Insurance Scrutiny: Insurers are increasing underwriting and claims pressure as rates fall, pushing policyholders to strengthen security controls and manage third-party tech risk. Compliance & Contracts: A guide on “flowdown clauses” highlights how prime contractors must pass federal obligations to subcontractors—mistakes can trigger major liability. Local Cost Crunch: At a Eugene roundtable, small businesses told Sen. Jeff Merkley that ingredient, electricity, insurance, and fuel surcharges are squeezing sales. Energy Costs Watch: Data centers adding on-site gas power could raise bills for homes and small businesses, as projects face grid delays. Hiring Basics: A practical piece covers how to plan and budget for your first employee, from job descriptions to legal requirements. Marketing Risk: Small businesses are warned about using “World Cup” branding in promotions without crossing trademark lines.

Small Business Sales Watch: Fiserv’s Small Business Index shows May sales were flat month over month, with transactions down 0.2% and foot traffic still soft (down 2.4% year over year for the seventh straight month), even as average ticket sizes rose 3.1%—a sign customers are spending more per visit while staying cautious. World Cup Cost Pressure: In New York, Zohran Mamdani pushed FIFA on dynamic pricing and secured 1,000 $50 tickets via a lottery, after high resale prices and an AG investigation highlighted how tournament costs are hitting working fans. AI for SMBs: DocuSign rolled out an AI-powered Intelligent Agreement Management platform (with an assistant called Iris) aimed at speeding up contract reviews and approvals for smaller teams. Disaster Relief for SMBs: SBA opened low-interest drought Economic Injury Disaster Loans across parts of Wyoming, Colorado, Montana, Nebraska, and South Dakota, covering working capital losses tied to drought. Local Growth & Training: Northwest State Community College hosted a free business financing workshop through CEED to Success, targeting veteran-, women-, and minority-owned founders with lender and financing guidance. Food Supply Squeeze: Restaurant owners say wholesale costs are spiking—one operator reported major jumps in key ingredients—raising fears of further menu price hikes after Sysco’s planned Restaurant Depot purchase.