CyberPolicy is monitoring news of the coronavirus (COVID-19) outbreak and has activated a business continuity plan in response to the situation. We have implemented precautionary and preparedness measures to reduce exposure to the coronavirus and are prepared to maintain normal business operations.
X

Linda McMahon: Will Trump’s Small Business Administration Pick Be Good for Small Business?

The 45th president’s cabinet picks have been, in a word, controversial. Senate democrats have unabashedly worked to stop Mr. Trump’s nominations from going through, but every single nominee save Andrew Puzder (Puzder withdrew his name a day before his confirmation hearings were set to begin after a series of scandals broke) has been sworn in.

Perhaps the least provocative nominee on Trump’s list, Linda McMahon was confirmed as the new Administrator of the U.S. Small Business Administration with a vote of 81 to 19 in the Senate.





The former World Wrestling Entertainment (WWE) chief ran the business in partnership with her husband for 30 years, stepping down in 2009 to run on the Republican ticket for Senate. McMahon and her husband bought the wrestling business from her father-in-law in the early 1980s and turned it into a multi-million-dollar franchise. In her Senate hearing, McMahon shared that “[she] remember[ed] the early days every month when [she] had to decide whether to continue to lease a typewriter or whether [she] could continue to buy it. Yes, believe it or not, that $12 a month at that time made a difference in [the family] budget.”

McMahon continued: “Like all small business owners, I know what it’s like to take a risk on an idea, manage cash flow [and] navigate regulations and create jobs.” No one can argue the success of the WWE, but there has been concern that McMahon will not do what she can to protect small business owners AND their employees. WWE’s reputation was tarnished when it was learned that the company classified their wrestlers as independent contractors. Independent contractors do not qualify for the same perks as full-time employees; this includes receiving healthcare. According to the WWE, the company pays for the medical treatment of their contractors if they are hurt in the ring and offer their wrestlers drug rehabilitation should they need it.

The WWE has long been ensnared with allegations of illegal drug use among its wrestlers. In 2007, Both Linda and her husband Vince McMahon testified before Congress over the allegations, where they vehemently denied any involvement.

Though McMahon and her spouse may have worked hard to build their commercial empire, it would appear that they did it on the backs of independent contractors.

What Can McMahon Do for Small Business?

According to Fortune Magazine, McMahon has stipulated what she would like to do as the head of the Small Business Administration. Here are three promises McMahon has made to facilitate change in the agency:

1. Amend Financial Education: Small business owners go into business without a full comprehension of the financial strength it will take to keep the business running. McMahon believes that better educating small business owners about financial business planning would lower the rate of small businesses going out of business.

2. Support minority-led small business: McMahon has said she wants more federal contracting opportunities for minorities and women.

3. Keep the Small Business Administration and independent agency from the Department of Commerce: The Obama administration had proposed combining the SBA with the Department of Commerce, this was an unpopular suggestion.

As can be gleaned from this article, even running a strong business has its cost, no matter how seemingly successful it is. To combat hardships that might come your way, invest in a commercial insurance plan.

For more information on how to prepare your small business for success, make sure to visit CoverHound today.

© 2010 - 2021 CoverHound, Inc. All rights reserved. CoverHound© is a trademark of CoverHound, Inc. DBA: CyberPolicy Insurance Solutions - CA License No. 0L13180. DBA: CoverHound Insurance Solutions - CA License No. 0H52375