As President Donald Trump's second term continues to take shape, small businesses across the country are facing mounting challenges due to shifting economic policies. The administration's new directives, including funding freezes, tariffs, and the rollback of diversity initiatives, have created a climate of uncertainty. While some of these policies have been temporarily halted by the courts, business owners are still contending with rising costs, higher interest rates, and increasingly cautious consumers. The resulting instability is forcing many entrepreneurs to reevaluate their financial strategies and long-term business plans.

For David Funk, founder of Zero Emissions Northwest, a consultancy in Spokane, Washington, the impact of these changes has been immediate and devastating. Funk’s company specializes in assisting farmers in securing federal grants for essential equipment and energy expenses. However, since the implementation of Trump's "Unleashing American Energy" order, several projects funded under the Inflation Reduction Act have been put on hold. One of the most significant setbacks came when the U.S. Department of Agriculture rejected a $65,000 invoice for work his company had already completed since October. This unexpected financial shortfall has led Funk to furlough employees and cancel projects, leaving many farmers in limbo. "It’s hitting farmers hard, especially those who supported Trump, who are now realizing how his policies impact them directly," Funk stated. The disruption has left many agricultural businesses uncertain about their financial stability and future growth.

The Struggle for Small Business Owners Amidst Policy Shifts

In Las Vegas, Shaundell Newsome, founder of Sumnu Marketing, is facing similar difficulties. His company, which provides marketing services for small businesses, relies in part on a Labor Department grant to fund an internship program. The recent freeze on federal funding has put the future of this program at risk, leaving Newsome uncertain about how to proceed. "If we lose that funding, we’re going to have to make difficult decisions," he explained. The potential loss of funding could lead to cuts in staffing, reduced business operations, and fewer opportunities for aspiring young marketers seeking hands-on experience.

Despite these challenges, Newsome remains determined to move forward with his plans to expand. He intends to hire new staff in March but is deeply concerned about securing funding for the rest of the year, particularly for a summer program aimed at high school students. Many small business owners share his concern as they navigate an economic landscape that appears increasingly volatile. Without clear and stable policies in place, the ability to make long-term financial and operational decisions remains a significant challenge.

As small businesses adapt to these unpredictable conditions, many are seeking alternative funding sources and rethinking their growth strategies. Some entrepreneurs are looking toward state and private grants, while others are exploring cost-cutting measures to remain financially viable. The uncertainty surrounding economic policy under Trump's second term has left small business owners in a precarious position, forcing them to make tough decisions that could impact their ability to survive and thrive in an increasingly unpredictable marketplace.