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On November 9th, 2016, Donald Trump was elected as the 45th president of the United States, with a narrow victory over Hillary Clinton. Now, in the aftermath, there has been a great deal of concern and turmoil as the stock market has fluctuated wildly, leaving small business owners wondering how this could affect their finances.

How the election has small businesses worried

For those who already have small business loans, the worry is that interest rates could rise making it impossible to make monthly payments. For others who are in the process of applying for or thinking about applying for small business loan, especially a small business owner with bad credit, the concern is multiplied. Yet, for those true entrepreneurs, the folks who sit up night after night trying to come up with positive ways to grow their business and take advantage of a new person in the White House, it’s just part of the territory.

The time is now to be smart and strong

According to Lee Polevoi who contributes to Intuit’s blog, one of the biggest reasons small business owners fail is because they lack determination. He says that, “Without a passion for what you do, without the mental and physical stamina to put in long hours, and without the attitude that you can take setbacks and keep moving forward, you might as well cut your losses now.” Do you have the right passion for your company, in terms of facing uncertainty in the coming years? If so, read on.

It’s time to think about the future. How could the post-election period affect your small business loan and your business? Here are some potential scenarios.

It may be harder to obtain capital to expand businesses.

During Clinton’s campaign, she rolled out a plan to reduce the red tape of getting additional capital for small businesses. Trump’s plan does not provision for this therefore it could be difficult to go the traditional route and get more small business loans. It will be next to impossible for those with bad credit to get a bank loan, period. Fortunately, there are bad credit small business loans available to help those struggling to expand in a difficult economy.

Tax rates may fall, providing additional working capital.

The Trump plan calls for reducing the small business tax rates across the board, to as little as 15% for companies. This could help to provide more money for other expenses, such as hiring more workers or improving equipment. With most small businesses paying tax rate of up to 40%, this is welcome relief. This added working capital could make it easier to obtain small business loans. However, Trump’s plan only benefits less than 10% of small businesses, according to most recent studies.

NAFTA trade deals may end, meaning loss of income and eligibility for financial products.

According to CNBC, the potential end of NAFTA trade agreements could spell trouble for many small businesses, because, says Raymond Keating a chief economist with the Small Business and Entrepreneur Council, “Free trade agreements help to reduce small business expenses and expand opportunities.” The loss of income could make it harder to obtain a small business loan. With the Mexican Peso already dropping in value, businesses that have operations in this country will have to move quickly to avoid catastrophic financial losses.

Trump hasn’t mentioned women business owners.

In his candidacy run and in the early weeks of his election, Trump has not addressed the issue of women small business owners. There are no current provisions for women in business, as all have been lumped together. Could this affect a woman business owner who wants to apply for a grant, take on a government contract, or try to get a small business loan? This is uncertain, but more small business loan programs for women will certainly emerge via alternative sources – like the special programs at United Capital Source.

Healthcare reform could put added burdens on small business owners.

Trump has made it clear that one of his primary goals as the president is to repeal the Affordable Care Act, which now provides over 11 million Americans with health care coverage. The LA Times reported that the day after his win, nearly 100,000 people enrolled in their plans via Obamacare. If healthcare reform is reversed, with plan premiums as high as they are currently, it could be disastrous for small businesses who will lose the ability to provide cost-effective health insurance to their workforce. Small business loans for those who serve the health and wellness markets could also be in jeopardy because of the risk associated with this industry.

American small businesses in the energy sector could soar.

During his campaign, Trump consistently promoted the tremendous opportunity that the US has to become energy efficient. His plan to create hundreds of thousands of jobs in the energy sector could help all small businesses that are involved in this industry. Small business loans for starting energy-related companies could become a lot easier to obtain, when coupled with Trump’s plan to deregulate the EPA and other government agencies that make it hard to get things approved. It’s uncertain if this will happen anytime soon, but it is something to consider.

How to handle the uncertainty of the Trump presidency

The best course of action for any small business is to take a wait and see stance until the dust settles some. Partner with a financial company that will work hard to ensure your small business is a success, even if you are facing bad credit or just getting started. Consider not only low interest small business loans, but also merchant cash advances, business loan programs for women, and more to maintain a strong business during this transitionary period. It’s no time to panic, but rather come up with a financial plan that will serve your business well during the next few years.


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