CHARLOTTE — Small business owners in Charlotte are concerned about the potential loss of federal funding, which they say is crucial for filling financial gaps and keeping their businesses afloat.
President Donald Trump’s attempt to freeze federal funding for diversity, equity, and inclusion (DEI) programs has been temporarily blocked by a judge, but the uncertainty remains a significant worry for local entrepreneurs.
“I literally three days ago, I was moving my furniture and teapots and cups out of my second location and putting it into storage, I just couldn’t keep the two leases,” said Sherry Waters, owner of The Pauline Tea Bar Apothecary.
“A lot of small business owners do depend on those kind of loans and support for capital,” Waters added.
David Powell, owner of No Grease Mosaic Barbershop, shared a similar sentiment, saying, “SBA opened up some avenues for me, and I was able to tap into that, which has been a lifesaver.”
Sherry Waters has been in business for five years and credits federal funding with helping her business grow. “It helped me stay in business. If I did not have that support, I would have had to close down,” she explained.
A report from Lending Tree shows that 7.1% of businesses in Charlotte were Black-owned in 2022, up from 5.3% the previous year.
However, David Powell worries that this number could drop if federal funds are cut, potentially discouraging aspiring Black entrepreneurs.
“You know, the fear sits in that people believe because the funds are not there, they cannot do it,” Powell said, expressing concern over the challenges faced by small business owners.
If federal funds are cut, small business owners emphasize the importance of community support to help keep them afloat.
You can read the full Lending Tree report here.
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