Charlotte Small Business Owners Worry About Federal Funding Cuts

Small businesses across Charlotte are getting nervous about upcoming cuts to federal aid programs. Black-owned businesses, which grew from 5.3% to 7.1% in 2021-2022, could be hit the hardest.

Though a recent court decision stopped plans to cut funding for diversity programs, store owners are still anxious. Many are already cutting back expenses, uncertain about what's ahead.

"It helped me stay in business. If I did not have that support, I would have had to close down," said Sherry Waters, owner of The Pauline Tea Bar Apothecary, to wsoctv.com. She's already packed up her second location's stock, storing it away because of money worries.

No Grease Mosaic Barbershop owner David Powell calls the Small Business Administration a "lifesaver." Their help, through PPP loans and emergency aid, helped many businesses survive.

Charlotte's story matches what's happening nationwide with minority business growth. From 2019 to 2022, Black-owned businesses jumped 50% across America, according to the National Bureau of Economic Research.

In past tough spots, government help made a real difference. During the worst of COVID-19, SBA loans and grants helped keep money flowing when regular business slowed down.

With federal support now shaky, businesses are turning to their community for help. They're combining crowdfunding with local support groups to fill possible gaps.

The money problems go beyond day-to-day operations. Without federal grants, owners can't buy new equipment or try new ideas, things that usually help businesses grow and do well.

Business owners are fighting to be heard, knowing decisions in Washington affect Charlotte's local economy. How this funding situation plays out could change the city's business landscape.

The success of past federal programs proves their importance. They provided stability in rough times and created opportunities where there were obstacles.