ICYMI: Fraud, Scams, and Ransomware Impose a $131 Billion “Hidden Tax” on America’s Small Businesses

National survey of small businesses commissioned by the Public Private Strategies Institute (PPSI) finds that fraud, scams, and ransomware impose a $131 Billion “Hidden Tax” on Main Street.

The rise of artificial intelligence (AI) is transforming industries, economies, and everyday life — automating routine tasks, sharpening decision-making, and redefining how businesses innovate and compete. But what does this technological shift mean for small businesses? To explore this question, Reimagine Main Street, in partnership with 14 small business organizations and with support from PayPal, conducted a national survey of nearly 1,000 small businesses with annual revenues between $25,000 and $5 million. The goal was to better understand how business owners perceive AI, what experiences they’ve had with it so far, and where they see opportunities or concerns. Our mission: to surface the opportunities, challenges, and barriers that small businesses face in adopting AI — and ensure they have the knowledge and tools needed to thrive in an AI-powered economy. AI Interest Is High, Adoption Is Emerging The survey revealed that small businesses are moving past the question of if AI matters and are grappling instead with how to make it work. Roughly three-quarters of respondents are either actively using AI or exploring its possibilities. About 25% are active users, already integrating AI tools into daily operations. Just over half (51%) are explorers, curious and experimenting but not yet fully committed. The remaining 24% are non-users, with no immediate plans to adopt. This spectrum of engagement shows that while adoption is uneven, curiosity and awareness are widespread. The Benefits: From Efficiency to Strategy For those already using AI, the gains are clear and tangible. 92% of active users report that AI saves them time and improves efficiency. 77% see positive results in marketing and customer engagement, including automating outreach and generating content. 53% prioritize AI for financial forecasting, pointing to cash flow management as a critical area where smarter tools are needed. Importantly, business owners also view AI as more than just a way to work faster. Many believe it enhances competitiveness and resilience, helping them navigate uncertainty with greater confidence. The Challenges: Security, Bandwidth and ROI Not all small businesses are ready to dive in. The survey uncovered persistent barriers that slow adoption: 38% worry about data security and privacy. 37% say they lack the time or resources to explore new technologies. 34% struggle to see a clear business case or return on investment. For these “explorers,” the key to moving forward is greater clarity and support. Nearly three in four said they would be more likely to adopt AI if tools were easier to use, if ROI was clearer, and if training opportunities were more widely available. Opportunities to Unlock Small Business Potential The findings highlight several priorities for enabling broader adoption: Accessible, user-friendly tools that fit into existing workflows. Training and education to demystify AI and show practical applications. Trusted providers and partnerships to address concerns about data security and reliability. When these needs are met, small businesses say they are eager to use AI not only for efficiency, but also for growth, innovation, and better decision-making. From forecasting sales trends to tailoring customer offers in real time, owners see AI as a way to expand opportunities and strengthen competitiveness. The Reimagine Main Street survey underscores a pivotal moment: small businesses know that AI is here to stay, and most are ready to explore how it can serve them. While hurdles remain — from cost and complexity to privacy and ROI — the appetite to learn and adopt is strong. With the right support from policymakers, technology providers, and business ecosystem leaders, small businesses can harness AI not just to keep pace, but to lead.  Public Private Strategies Institute is hosting its inaugural Small Business Innovation Summit on October 15 in Washington, DC to bring together leaders across sectors to further examine how disruptive technologies from artificial intelligence to digital finance are reshaping the broader economy, and what these changes mean for small businesses and the people they employ.

Tammy Halevy, Executive Director at Reimagine Main Street, a project of PPSI, joined LIVE on NYSE TV, to spotlight new data from our survey on how AI is reshaping Main Street. Watch the full interview here or below.

Rhett Buttle, Founder of the Public Private Strategies Institute, joined NYSE TV to talk about Small Business Saturday.

WASHINGTON, DC – Saturday, November 30 is Small Business Saturday, a day to recognize, celebrate and shop at the over 34 million independent businesses in communities across the country. Ahead of Small Business Saturday, Rhett Buttle, President of Public Private Strategies Institute, released the following statement: “The over 34 million independent businesses in America are the backbone of our communities and of our economy. About 62 million people – or nearly half of all working Americans – are employed by small businesses. And small businesses do so much more than create jobs and deliver goods and services – they bring communities together, deliver critical innovations, and build community and cultural identity. “This Small Business Saturday is a chance to recognize, celebrate, and support small businesses in your community. Over the past four years, we have seen a historic small business boom in the United States, with a record 20 million new small business starts. Every small business is an act of hope and optimism, from new business to business that got through COVID to business that has been a part of your community for decades. “Despite the progress of the past four years, there remain critical challenges facing the small business community, from the cost of health care to the tax landscape . While we must continue to advocate for policy solutions, shopping small on Small Business Saturday is one of the best ways to ensure MLK Boulevards, Cesar Chavez Ways, Chinatowns, Main Streets, and the millions of Americans who benefit from small business growth are able to thrive. “We applaud our friends and partners at the United States Small Business Administration, Women Impact Public Policy (WIPP), and American Express for their work on Small Business Saturday activities, spreading the word to #ShopSmall on #SmallBizSat. Find a small business participating in the efforts here .” ###

WASHINGTON, DC – Over the past six months, over a dozen business organizations built a series of impactful business fly-ins at the White House, gathering over 200 business leaders from across the country to engage directly with top policymakers on critical economic issues. These summits, covering four regions and representing over 20 states, offered business owners a unique opportunity to discuss economic policies such as the Investing in America Agenda and the transformative effects of the Inflation Reduction Act (IRA), Bipartisan Infrastructure Law (BIL), and CHIPS Act. "We were proud to be part of the coalition that brought hundreds of business leaders to Washington to learn about opportunities in the Invest in America Agenda,” said Dr. Janis Shinkawa, Chair of the Board of Director at the National Association of Women Business Owners (NAWBO) . “There is incredible opportunity for entrepreneurs across America right now thanks to the Inflation Reduction Act, Bipartisan Infrastructure Law, and CHIPS & Science Act, which are fueling a small business boom. It’s critical that we keep that boom going by connecting policymakers and business leaders to discuss these opportunities and ensure they are implemented effectively.” “The USHCC was honored to support a series of regional economic summits at the White House led by our partners at Public Private Strategies,” said Ramiro A. Cavazos, CEO & President, United States Hispanic Chamber of Commerce . “These impactful events empowered our local chamber leaders to better understand and leverage federal investments in small businesses. By bringing these resources directly to our communities, we are ensuring that Hispanic-owned businesses across the country are positioned to thrive and grow.” “WIPP is delighted to have supported the inclusion of small businesses in this partnership,” said Angela Dingle, President & CEO, Women Impacting Public Policy (WIPP) . “Providing women-owned small businesses the opportunity to be at the forefront of policy that affects them is critical in ensuring that these entrepreneurs have a voice in the economy. It is through initiatives such as these that these underrepresented voices are made to feel valued and included.” “Engagements like these are essential to ensuring that historic investments of the past four years are accessible to all. The chance to gain resources and deeper understanding on these policies is paramount to closing the gap to upward mobility for small business owners,” said Ying McGuire, CEO & President, National Minority Supplier Development Council (NMSDC) . “This initiative fortifies the alliance between policymakers and small business owners, a relationship which is needed now more than ever.” "We were thrilled to be a part of these summits, which have opened new avenues for LGBT-owned businesses to engage directly with policymakers and gain critical insights into federal initiatives that support their growth," said Justin Nelson, Co-Founder & President at the National LGBT Chamber of Commerce (NGLCC) . "By bridging the gap between small businesses and Washington, we ensure that our voices are heard, and our unique challenges are addressed, creating a more inclusive and vibrant economy." "These summits have empowered our community by connecting Asian American and Pacific Islander (AAPI) entrepreneurs with decision-makers at the highest level," said Chiling Tong, President and CEO at the National Asian Pacific Islander American Chamber of Commerce and Entrepreneurship (National ACE) . "With the support of policies like the Inflation Reduction Act and the CHIPS Act, AAPI-owned businesses are better equipped to innovate and thrive. It is essential that we continue to foster these conversations to ensure that all entrepreneurs, regardless of background, have the resources they need to succeed." "When you're an entrepreneur sifting through business resources, it's easy to get lost in the information and wonder if there are real human beings on the other end of the phone. The fly-ins put a friendly face to the bureaucratic processes small business owners must navigate to push their enterprises towards sustainability. I think the events helped restore entrepreneurs' faith that government officials are looking out for them." said Richard Trent, Main Street Alliance Executive Director. “When small business leaders brief Washington decision makers on policy issues affecting their business -- like tax credits, infrastructure investments, and childcare access -- everyone walks away with a better understanding of how economic policy impacts not only their bottom line, but the communities they employ and serve. This year's regional summits highlighted how valuable local business leaders are to building and maintaining vibrant communities and local economies.” said Liz Fairchild, Executive Director of Business Forward . "This series provided a fantastic opportunity to elevate the voices of small business owners, offering entrepreneurs nationwide a platform to share their concerns with some of the most influential lawmakers in Washington. In a world that so often dismisses the smallest businesses because they don't have enough market share on their own to exert real power, it was refreshing to see individual business owners welcomed to the table and treated as important constituents whose needs should be addressed." John Arensmeyer, Founder and CEO, Small Business Majority . “These summits were an incredible opportunity to connect business leaders from all corners of the country with key policymakers. By facilitating these important discussions, we ensured that small businesses, the backbone of the American economy, have a seat at the table and a voice in shaping economic policy,” said Rhett Buttle, President of Public Private Strategies Institute . "Small businesses fuel innovation, create jobs, and drive economic growth. It's crucial that their voices are not only heard but also reflected in our nation's policies. These summits provided a meaningful opportunity for business owners to engage with policymakers on the opportunities and challenges of running a business,” added Katie Vlietstra Wonnenberg, Principal at Public Private Strategies . Small Business Summits, by the numbers: 200 business leaders have participated in four economic briefings at the White House. Four regions represented, spanning over 20 states, including: Mid-Atlantic: DC, DE, MD, NC, PA, VA, & WV Midwest: IL, IN, MI, MN, & WI Southwest: AZ, CO, NM, NV, & UT Southeast: AL, FL, GA, NC, & SC Business leaders took part in policy briefings, networking receptions, and training, featuring guest speakers from the U.S. Department of Treasury and key Administration officials. The final event in September emphasized opportunities for entrepreneurs in the Southeast, focusing on ensuring that small business voices are heard as these historic investments continue to support a thriving business environment. “These summits allowed small business owners to bring their concerns directly to the nation's leaders, ensuring that policies are informed by those who live and breathe the day-to-day challenges of running a small business,” said Sammi Kerley, Small Business for America's Future (SBAF). Patricia McKinley, Owner, KHAVL Transport, LLC, Phoenix, AZ: "As a small business owner, it's vital to have our voices and priorities heard. This event at the White House was an incredible opportunity to highlight the critical role small businesses play in driving economic growth and creating jobs in our communities. We look forward to engaging in meaningful dialogue about the challenges we face and the support we need to continue thriving." Maysee Heer, CEO of the Hmong Wisconsin Chamber of Commerce, Milwaukee, WI said: "Diverse communities are a vital part of Wisconsin's economic landscape, and we've witnessed substantial job creation and a surge in new business ventures, thanks to these supportive actions the Administration has taken. By investing in diverse-owned small businesses, we not only preserve cultural heritage but also fuel economic growth. Our dialogue with the White House today was a crucial step in advocating for these essential changes." Subrina and Greg Collier, BayHaven Restaurant Group Charlotte, NC, said: “I’m encouraged by the White House’s commitment to investing in the small business economy. This event allowed us to bring the unique challenges and opportunities of our region to the table and to learn about resources and support available to promote growth. It was an important step toward ensuring that small businesses like mine continue to thrive and contribute to the economic vitality of our region.” Media Highlights Several business owners who attended the summits shared their insights on the impact of federal economic policies on small businesses in prominent media outlets: Suzanne Stantley discussed how the Investing in America Agenda has benefited small businesses in her recent interview with Yahoo! Finance. Walt Rowen highlighted the challenges and opportunities for business owners in a segment on Fox 5 DC. Shaundell Newsome spoke about the importance of equitable access to federal resources during his appearance on LNL. Additional Media Contributions Business owners also shared their perspectives in several Letters to the Editor (LTEs) published across the country, reflecting on the summits' discussions and their impact on the business community: Suzanne Stantley, Chicago Tribune Anne Zimmerman, Cincinnati Enquirer Shaundell Newsome, Las Vegas Sun Angel Figueroa, Reading Eagle Valerie Benton Smith, News & Record ###

WASHINGTON, DC – Today, Vice President Kamala Harris announced that the Small Business Administration (SBA) provided a record $56 billion in lending during Fiscal Year 2024, supporting more than 100,000 small business financings—the most in over 15 years. The Vice President also highlighted efforts to cut red tape and announced new proposed measures aimed at simplifying access to federal contracting, benefiting small businesses across the country. The new measures aim to make it easier for small businesses to compete for federal contracts, furthering opportunities for growth and innovation. Rhett Buttle, President, Public Private Strategies Institute, released the following statement: “The historic $56 billion in SBA lending to small businesses in FY24, a more than 50% increase from four years ago, is just the latest sign of America’s small business boom. Thanks in part to smart policy investments like the Capital Readiness Program and State Small Business Credit Initiative, there have been more than 20 million new small business applications in the past four years. A small business start or loan is an investment in a brighter future, and over the past four years, small business lending has increased dramatically, with particularly strong increase among Black-, Latino- and women-owned businesses. “The new measures unveiled today seek to cut red tape, streamline federal contracting, and ultimately, build more momentum for American entrepreneurs. By increasing access to capital and opportunities, these actions will help strengthen businesses in communities across the nation, promoting job creation and economic growth. We remain focused on fostering partnerships that support small businesses and ensure their continued success.” ###

WASHINGTON, DC – This week, a delegation of business leaders from Alabama, Florida, Georgia, North Carolina, and South Carolina gathered at the White House to discuss the impact of federal policies on their communities and explore new avenues for growth under the Investing in America Agenda. The event underscored the unique challenges and opportunities facing the region’s entrepreneurs. Participants also learned directly from the Biden-Harris Administration about their efforts to support small businesses through strategic investments and economic policies. Following the Business Leader Summit, business leader participants released the following statements: Steven Adkins, President/CEO, Greater Miami LGBTQ Chamber of Commerce, Miami Beach, FL, said: “As a proud member of the LGBTQ community, I am deeply honored to have our voice recognized in such an important forum. Bringing together business leaders from across the Southeast to discuss the Investing in America Agenda, while also sharing our unique experiences as LGBTQ entrepreneurs, underscores the vital role collaboration plays between the public and private sectors. It was an invaluable opportunity to engage with policymakers and hear firsthand about the investments driving growth and innovation in our region. These discussions have left us with a renewed Rhett Buttle, President, Public Private Strategies Institute, said: “Small businesses are the backbone of our economy, particularly in the Southeast where they play a crucial role in driving innovation and job creation. This event provided a unique opportunity for business owners to directly engage with policymakers, ensuring that their voices are heard and their needs are addressed. The insights gained from this event will help shape the policies that support small business growth and economic resilience in the region.” Subrina and Greg Collier, BayHaven Restaurant Group Charlotte, NC, said: “I’m encouraged by the White House’s commitment to investing in the small business economy. This event allowed us to bring the unique challenges and opportunities of our region to the table and to learn about resources and support available to promote growth. It was an important step toward ensuring that small businesses like mine continue to thrive and contribute to the economic vitality of our region.” Devotis Lee, D Cafe Atlanta, Atlanta, GA, said: "It was inspiring to see the White House recognize the critical contributions of Southeastern small businesses. The investments being made by leaders in Washington today will be instrumental in ensuring our businesses thrive in a competitive national landscape for decades to come." Bailey Lewis, Words First Content Strategy, Columbia, SC, said: “Small businesses across the Southeast are powering our communities forward. This event at the White House was an invaluable opportunity to learn about new avenues for growth, to voice our concerns, and to share our perspectives on the small business landscape. We discussed critical issues such as managing the not-insignificant costs of running and growing a small business, as well as the need to foster more competitive markets. Together, we identified steps to drive economic growth and strengthen our communities, ensuring that the Southeast remains a vibrant place for entrepreneurship.” Laconya Murray, Off the Mark IP Solutions, Montgomery, AL, said: “The discussions we had this week in Washington reinforced the vital role that small businesses play across our economy. It was an honor to join entrepreneurs from across the Southeastern region to learn about the policies shaping the economic landscape in our communities.” ###

WASHINGTON, DC – Today, a delegation of business leaders from the Southwest, including Arizona, New Mexico, Nevada, and Colorado gathered at the White House to discuss the crucial role of small businesses and Main Streets in the economy. The event underscored the unique challenges and opportunities facing small business owners and served as a platform for business owners to share their experiences and insights directly with policymakers. Participants learned directly from the Biden-Harris Administration about their commitment to small businesses and the big investments they have made so communities in the Southwest can take part in the economic boom. Following the Business Leader Summit, business leader participants released the following statements: Patricia McKinley, Owner, KHAVL Transport, LLC, Phoenix, AZ: "As a small business owner, it's vital to have our voices and priorities heard. This event at the White House was an incredible opportunity to highlight the critical role small businesses play in driving economic growth and creating jobs in our communities. We look forward to engaging in meaningful dialogue about the challenges we face and the support we need to continue thriving." Kristelle Siarza Moon, Owner and CEO, Siarza & Volunteer Executive Director, Asian Business Collaborative, Albuquerque, NM: "These meetings underscore the importance of supporting small businesses, particularly those in underrepresented communities. We were thrilled to bring our perspectives to the table and discuss ways to foster inclusive economic development. By sharing our experiences and insights, we hope to influence policies that create a more equitable business environment for all." Masaru Torito, Owner, Kokoro Restaurant, Denver, CO: "This event provided a remarkable platform to discuss the vital role of small businesses in our economy. It was an honor to share our story and the unique challenges we face in the restaurant industry. We hope our contributions will help shape policies that support small businesses and foster a more resilient economic environment." Andrea Vigil, Owner, Allegiant Electric LLC, Las Vegas, NV: "Being part of this event at the White House was a significant moment for small businesses like ours. It was a chance to advocate for policies that will help us thrive and continue contributing to the local and national economy. We look forward to continuing to have productive discussions and the opportunity to collaborate on solutions that will benefit small businesses across the country." Katie Vlietstra Wonnenberg, Secretary, Public Private Strategies Institute said: "We are deeply committed to elevating the voices of small business owners and ensuring they have a seat at the table when it comes to policy decisions that affect their lives. This event at the White House underscores the critical role small businesses play in driving our nation's economy and fostering innovation within our communities. By bringing together a diverse group of business leaders from the Southwest, we are highlighting the unique challenges and opportunities they face in this vibrant region. Our goal is to advocate for policies that support their growth and sustainability. “Small businesses are not just economic entities; they are the heart of our neighborhoods, providing jobs, services, and a sense of community. Today, we are amplifying the importance of their contributions and advocating for an environment where they can thrive. We are grateful to the White House for recognizing the value of these discussions and for the opportunity to collaborate on building a more inclusive and robust economy. Together, we can create a future where every small business has the resources and support it needs to succeed." ###