Nav’s weekly roundup of news impacting small business owners.
Week Ending February 7, 2025
It’s been an incredibly busy news week, with many issues that may directly or indirectly impact small business owners. Here are important highlights:
Tariffs
A head-spinning week of tariff news has ended with a temporary reprieve of most — but not all — of President Trump’s threats to impose sweeping tariffs. His Executive Order calling for 25% tariffs on goods imported from Mexico and Canada, and a 10% tariff on Chinese goods, were to go into effect Tuesday February 4, 2025. He quickly agreed to postpone tariffs on Mexico and Canada for at least a month.
China tariffs largely continue, though on Wednesday of this week, President Trump issued an executive order which reinstates what’s known as the “de minimis” exemption for small packaged goods shipped from China. This means consumers won’t likely see an impact of most tariffs for smaller items bought from China, such as those sold through the online shopping site Temu.
China has responded to US tariffs with retaliatory tariffs, including tariffs on liquid natural gas.
Why it matters: Tariffs can increase costs for consumers and small business owners, and potentially lead to inflation. Tariffs are often used strategically, though, to protect or benefit specific industries that face foreign competition.
Stay on top of tariffs: How Tariffs Can Impact Your Small Business: An Up-To-Date Guide
TikTok Ban
The TikTok ban is in a 75-day reprieve following its ban effective January 19, 2025. Those who deleted the popular social media app in expectation of the ban are unable to download the app from the App Store or Play Store.
What will happen next is anyone’s guess. Popular YouTuber Jimmy Donaldson (MrBeast) is reportedly interested in buying TikTok’s US operations, YouTube is wooing TikTok creators to its platform, and President Trump signed an executive order to create a sovereign wealth fund to fund the purchase of TikTok.
Why it matters: TikTok is a major marketing platform for many creators, freelancers, and small business owners. Goldman Sachs predicts the “creator economy” to grow to nearly half a trillion dollars by 2027.
Top States for Small Business Applications
Wyoming has more U.S. business applications per capita than any other state, according to research published this week by Start in Wyoming. The top states for business formation in 2024 were #1 Wyoming, #2 Delaware, #3 Florida, #4 Montana & #5 Colorado.
Overall, new business applications were down slightly in 2024, decreasing 4.76% from 2023 (5,461,471 vs, 5,201,647).
Consumer Credit Scores Hold Steady
VantageScore, a leading national credit-scoring company, reported recently that the average VantageScore 4.0 credit score has held steady at 702. (The range for this score is 300-850, with 850 representing the highest possible score.)
But it also reports that delinquencies (late payments) going into 2025, are “near their highest levels over the past five years across all Days-Past-Due (DPD) periods and across the lowest three VantageScore credit tiers.”
Why it matters: Many small business owners, especially startups, rely on their personal credit to get small business financing. Strong credit scores can be helpful, especially while business owners build business credit.
Consumer Financial Protection Bureau
President Trump fired CFPB Director Rohit Chopra and designated Secretary of the Treasury Scott Bessent as Acting Director of the Consumer Financial Protection Bureau (CFPB), a government agency whose work is focused on financial products including bank accounts, credit cards and credit bureaus. Bessent reportedly ordered staff to halt work “unless expressly approved by the Acting Director or required by law.”
Why it matters: Most of the CFPB’s work has focused on consumer financial protection. Because there is often an overlap between small business owner’s business and personal finances, there could be a spillover effect.
For example, on January 7, 2025, the CFPB finalized a regulation that bans the inclusion of medical bills on credit reports used by lenders and prohibits lenders from using medical information in their lending decisions, potentially raising credit scores for millions of Americans. Previous CFPB actions could be in jeopardy.
At the same time, industry and banking groups like the Consumer Bankers Association believe that CFPB regulations make it more difficult and expensive for Americans to access credit and banking products. The are pushing for less oversight, which they believe could lead to more innovation in financial services.
US Small Business Administration
Businesswoman and former Georgia Senator Kelly Loeffler’s nomination for SBA Commissioner (the top position at the US Small Business Administration) was advanced to the Senate floor for a future vote. If confirmed, she will take the helm at the US Small Business Administration.
Why it matters: The SBA provides small businesses in the US with counseling through partner agencies like Small Business Development Centers, Women Business Centers, and Veteran Business Owners Centers; access to capital through SBA loans including Disaster Loans and 7(a) loans; and government contracting expertise.
Loeffler has said she will target “fraud and waste and abuse”. It is not clear yet what changes Loeffler, if confirmed, may make to SBA programs or funding.
Sources for this week’s news
TikTok ban
- The White House: Application Of Protecting Americans From Foreign Adversary Controlled Applications Act To Tiktok
- The White House: Original Executive Order signed by President Trump August 6, 2020: Executive Order on Addressing the Threat Posed by TikTok
- AP News: How TikTok grew from a fun app for teens into a potential national security threat
- Goldman Sachs: The creator economy could approach half-a-trillion dollars by 2027
Tariffs
- The White House: Fact Sheet: President Donald J. Trump Imposes Tariffs on Imports from Canada, Mexico and China
- The White House: Amendment To Duties Addressing The Synthetic Opioid Supply Chain In The People’s Republic Of China
- Brookings: China’s retaliatory tariffs will hurt Trump-voting counties most
- AP: Canada and Mexico agree with Trump to postpone tariffs by at least 30 days
Business formation
- Start In Wyoming: U.S. Business Applications Slowed in 2024
Consumer credit scores
- VantageScore CreditGauge™ December 2024: Credit Card Balances Climbed in Line with Inflation as Consumers Proceed with Credit Caution
CFPB
- Consumer Bankers Association: Facts Matter: Correcting the Record on the Biden-Chopra CFPB’s Own Brand of Debanking
- The BAN Report: Chopra, You’re Fired
- CFPB: Statement on Designation of Treasury Secretary Scott Bessent as Acting Director of the Consumer Financial Protection Bureau
Small Business Administration
This article was originally written on February 7, 2025.
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