Different parts of plan could help, hurt entrepreneurs

Business litigation lawyer D. Margeaux Thomas has shared an analysis of President Joe Biden’s stimulus proposals, seeing parts that may help and hurt entrepreneurs.

Thomas, whose firm focuses on business contracts, partnership and commercial landlord/tenant disputes, said the most promising part of Biden’s plans is his commitment to administering 100 million doses of the Covid-19 vaccine in his first 100 days.

“Massive vaccinations will help consumers regain their confidence in meeting up with friends, going out to restaurants and shops and returning to their workplaces,” she said. “That will probably do more to help small businesses that have struggled under coronavirus restrictions than anything.”

On the other hand, Thomas said that Biden’s plan to almost double the federal minimum wage to $15 an hour could have a significant affect on small businesses that are more sensitive to increased payroll costs. She noted that increased payroll costs will likely force layoffs and a reduction of an already strained workforce where 18 million people are currently unemployed.

“A drastic mandate such as this may further cripple small businesses that are struggling to keep their doors open during the economic crisis caused by the pandemic,” she said.

On other parts of the stimulus proposals, Thomas said it may be too early to tell. Biden has proposed creating a $15 billion grant program to help small businesses and leveraging another $175 billion for small business lending and investment, but he has not yet released many details.

“What we have learned from prior stimulus packages is the devil is in the details, and without a solid plan entailing how this funding will be structured and exactly when it will be rolled out, it is difficult to predict how effective this new administration’s plan will be,” Thomas added.

About the Thomas Law Office

Based in Fairfax, Va., and serving the greater Washington, D.C., area since 2016, the Thomas Law Office focuses on all aspects of business divorce law, including breach of fiduciary duty claims, non-compete issues, breach of contract issues, and conversion. Attorneys at the Thomas Law Office help companies through all aspects of business divorce, including record inspection requests, valuation, buyouts, and dissolutions. To learn more, visit: https://thomaslawplc.com.