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  • Writer's pictureJessica Lauver

Kevin O'Leary Warns 'Bidenomics' Neglects Small Businesses, Foresees Credit Crunch

Kevin O'Leary, well-known investor from the TV show 'Shark Tank', has expressed his concerns about the impact of President Biden's economic policies on small businesses. In a recent interview with Fox News, O'Leary claimed that while these policies have been beneficial for firms listed in the S&P 500, they have neglected small businesses, which are crucial to the U.S. labor market as they support approximately 60% of jobs.

O'Leary argued that Biden's economic initiatives, such as the CHIPS Act, have primarily fueled investment in large companies. However, he found no specific programs within these initiatives designed to support small businesses. He stressed that the billions of dollars allocated to these programs have not yet been fully spent and questioned the absence of support for small businesses.

The only exception O'Leary identified was the Employee Retention Credit, a tax benefit for small businesses affected by COVID-19. However, this benefit is set to expire, and businesses will not be able to file taxes retroactively for 2021 after 2025.

Further complicating matters for small businesses, financial conditions have tightened this year due to factors such as the Federal Reserve's interest rate hikes and the fallout from several bank collapses, which have limited credit availability. O'Leary warned that small firms are facing a funding crisis as credit conditions tighten.

O'Leary, who has invested in over 30 small businesses, called for greater focus on supporting the small business sector, highlighting its importance to the overall economy. He criticized the current economic policy, or 'Bidenomics', as he termed it, for neglecting small businesses and warned that his own firms have been unable to raise funds.



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