In a new national survey of 1,200 small business owners, entrepreneurs say the expanded Child Tax Credit payments to 90% of all families drive consumer spending in their communities and businesses and they want legislators to extend them.
Sept. 29, 2021— A new national survey from a diverse coalition of the country’s leading small business groups finds that small business owners support legislation to extend the expanded Child Tax Credit payments that have been putting monthly checks into the hands of 90% of the country’s families because they increase consumer spending.
“The enhanced Child Tax Credit payments are critical to our small businesses. They’ve increased consumer spending, which is putting money back into our economy, most especially our nation’s small businesses,” said Ramiro Cavazos, President & CEO of the U.S. Hispanic Chamber of Commerce, one of the groups participating in the survey. “This is an important part of helping the nation’s more than 5 million Hispanic small businesses owners recover and thrive.”
The national survey of 1,259 small business owners in the networks of the National Asian/Pacific Islander American Chamber of Commerce and Entrepreneurship, the National Association of Women Business Owners, Small Business for America’s Future, the U.S. Black Chambers, Inc., the U.S. Hispanic Chamber of Commerce, and Women Impacting Public Policy was fielded from September 17-27, 2021 and asked about their attitude towards the expanded Child Tax Credit payments that went into effect in July and are set to end in December. The survey found:
- 61% of small business owners surveyed support the expanded Child Tax Credit (CTC)
- 64% say the expanded CTC payments put money into the pockets of families, which allows them to spend more money in their communities and at small businesses
- 62% say the flexibility and predictability of monthly cash payments allows parents to increase expenditures on home- and family-based child care, which benefits small businesses that need workers with stable schedules
- 77% say the CTC payments have been economically beneficial to those receiving them
- 52% support passing legislation to extend the enhanced CTC payments, which are set to end in December
- 59% say that increasing the spending power of families through the expanded Child Tax Credit will benefit Main Street small businesses
- 52% say the expanded CTC payments make it easier for working parents to get back to work.
“Hearing directly from small business owners from across the country, particularly those in the AAPI community, is crucial to helping us to navigate the pandemic. They are telling us that the enhanced Child Tax Credit is providing tax relief for those who need it and it is helping small business owners who rely on consumer spending to keep their doors open,” said Chilling Tong, President & CEO of the National Asian/Pacific Islander American Chamber of Commerce and Entrepreneurship. “Now, our leaders need to listen to what the small business community has to say and invest in tax cuts that help our Main Street entrepreneurs.”
Survey respondents represent a diversity of backgrounds and political viewpoints:
- 22% are Black, African or African American; 8% are Hispanic or Latino; 6% are Asian American or Pacific Islander; 3% are multi-racial; and 2% are Native American
- More than one in four respondents is female
- 27% identify as Democrats, 25% as Republicans, 22% as independent, and 23% declined to say/don’t know
- Of those respondents who identify as independent, 32% said they most often vote Republican, 26% most often vote Democrat, and 42% said neither
“This survey of small business attitudes toward the enhanced Child Tax Credit payments couldn’t have come at a more crucial moment,” said Jen Earle, CEO of the National Association of Women Business Owners. “The results show that the expanded Child Tax Credit payments are a critical component to the strength of many women-owned small businesses, and the economic health of their employees. We need our leaders to act on what many small business owners say they need as they continue to grapple with the economic fallout of the pandemic.”
“The expanded Child Tax Credit has helped many Black small business owners across the country by putting much needed money into the pockets of the customers they rely on to survive. This tax cut is instrumental in helping Americans during one of the biggest economic challenges our country has faced,” said Ron Busby, Sr., President & CEO of the U.S. Black Chambers, Inc. “As the pandemic drags on, small businesses owned by Black and brown Americans across the country need our lawmakers to continue investing in the strength of our economy and our Main Streets. Extending the enhanced Child Tax Credit payments is a powerful way to do that.”
“Small business owners are still grappling with the economic fallout of the Covid-19 pandemic and they believe the Child Tax Credit payments help by boosting families’ spending power,” said Frank Knapp Jr., Co-Chair of Small Business for America’s Future. “Failing to pass this much needed tax relief would lead to a drop in spending that would hurt mom and pop businesses. As the pandemic drags on, policymakers must continue to invest in our economy and support our small businesses.”
“The comprehensive survey results make it clear that the enhanced Child Tax Credit payments are boosting consumer spending and are putting money back into the economy,” said Candace Waterman, President & CEO of Women Impacting Public Policy. “Our nation’s small businesses need consistent demand to remain steady and make it through the pandemic. Investing in working families is a critical and much needed investment in America’s small businesses.”
View the full survey report here.
To schedule an interview with a representative from one of the participating organizations, contact Conan Knoll at firstname.lastname@example.org or (831) 524-6764.