AGP Executive Report

AI & SMB Growth: Meta is rolling out “Muse for Small Business,” letting SMBs set goals for its AI agent and connect tools like Shopify, Intuit QuickBooks, Slack, and more to help drive customers and revenue. Tax Compliance: The IRS now requires project-level reporting on 2026 R&D tax credit claims via mandatory Form 6765 Section G, meaning companies may need to reconstruct research-by-project records before filing. Healthcare Costs: Minnesota insurers approved double-digit premium hikes for 2027, with rising healthcare costs, inflation, drug expenses, and expiring ACA tax credits cited. Rural Capital Access: The Senate passed the Expanding Access to Capital for Rural Job Creators Act to expand reporting on rural small-business funding barriers and improve access to investment. Trade & Tariffs: A U.S. trade court heard skeptical questions on Trump forced-labor tariffs, with small-business challengers arguing the legal basis is shaky. Local Business Boosts: A new Binghamton affordable housing plan (Stadium Lofts) seeks LIHTC support, while Pennsylvania’s Meatheads Market received a state grant to expand processing capacity.

SMB Growth Funding: Dallas-Fort Worth Urban League will deliver the PepsiCo Foundation Restaurant Accelerator Program, a $10M, five-year effort with the National Urban League to fund and coach 500 restaurant owners across 12 cities. Local Business Support: Clark County (WA) opened applications for 2027 CDBG and HOME funds starting Oct. 1, with for-profit eligibility limited to micro-enterprise assistance. Manufacturing Incentives: Fort Worth approved incentives for Harting Connectivity’s proposed $192.7M plant, including a 10-year tax abatement and a pledge to spend 30% of construction costs with small businesses. Policy Fight Over Costs: The Senate failed to advance the Ratepayer Protection Act (57-43) aimed at stopping households and small businesses from absorbing grid upgrade costs tied to data centers. Tech for Small Firms: Meta rolled out “Muse for Small Business,” an AI agent that can draft ads and growth plans using a shop’s existing tools and data. Business Risk & Insurance: A survey found the top first-year regret for small business owners is not understanding what insurance coverage they need. Trade Court & Tariffs: Small businesses are challenging Trump’s forced-labor tariffs in trade court, arguing the government didn’t meet legal requirements.

Manufacturing & Supply Chains: August’s U.S. manufacturing PMI stayed in expansion at 54.6, but supplier deliveries kept slowing for a ninth month, with shortages hitting electrical and electronic components, labor, and steel—good news for output, bad news for small manufacturers trying to keep projects on schedule. Small-Business Advocacy: Christine Hopkins was named the 2026 Lewis Shattuck Small Business Advocate of the Year by the National Small Business Association, recognized for pushing procurement equity and support for women- and veteran-owned firms. Workforce & Veterans Hiring: Overwatch Mission Critical’s Anchors of Hope hiring push hit 206 veteran hires, with 28 companies signed on and a goal of 250 by Veterans Day. Franchise Cash Certainty: The Common Cents Act cleared Congress, setting a national rule for rounding cash to the nearest five cents to reduce state-by-state confusion for franchise small businesses. Disaster Recovery for SMBs: Indiana is adding one-stop recovery centers in LaPorte and Hamilton counties after August storms, including SBA disaster loan help and FEMA application support. Cybersecurity Risk: CISA warned of actively exploited Citrix NetScaler zero-days that can enable unauthenticated remote code execution, a direct threat to businesses relying on these edge systems. Fraud Crackdown: A Delaware pastor was sentenced to 18 months for pandemic relief fraud and tax crimes involving SBA-backed loans. Local Business Costs: Coffee shops in the Lehigh Valley say they’re absorbing higher input costs as coffee prices rise, while customers still question how much they’ll pay.

Data Center Politics: South Dakota’s governor candidates spar over local control of data centers, with Dan Ahlers backing more authority for communities while Gov. Larry Rhoden points to state rules on power and water impacts. Small-Business AI Tools: Meta rolls out “Muse for Small Business,” aiming to help owners handle tasks like ads, order tracking, and sorting messages—raising both productivity hopes and privacy questions. Restaurant Cash Rules: The Senate passed the Common Cents Act to smooth cash transactions during the penny phaseout, giving restaurants clearer “rounding” rules. Wage Pressure: Florida’s $15 minimum wage starts, but critics say it still won’t be “livable,” especially for workers without tips. Local Business Survival: A Harlem café owner says city fines and inspection delays are keeping the shop closed despite community fundraising. Veteran Entrepreneurship: Louisiana will get a new Veterans Business Outreach Center after an SBA grant secured with The Boot support. Manufacturing Growth: U.S. Bank doubles down on manufacturers with specialized banker training and plans for more verticals. Trade Hit to SMBs: A Canadian import ban is already hurting Western New York wine sellers who can’t easily swap suppliers. Franchise Advocacy: The International Franchise Association honors lawmakers for protecting franchise small businesses.

Small-Business Sentiment: A Citizens Financial Group Business Pulse survey finds optimism rising into Q4, with 54% of small business decision-makers expecting revenue growth over the next three months. Local Growth Gaps: A Next Street report on Chicagoland says the small-business support ecosystem has strengthened since 2018, but too few firms are turning help into sustained growth. Disaster Relief for SMBs: The SBA has opened low-interest disaster loans for Pine Ridge storm and flood victims, with up to $2M for businesses and nonprofits and a Nov. 27 deadline for physical-damage loans. Tax Policy for Food Donations: Rep. Darin LaHood introduced a House bill to create a 50% tax credit (capped) for businesses that donate prepared meals to qualifying nonprofits. Cybersecurity Pressure: Lawmakers are pushing for more help for small firms as cyberattacks increasingly threaten payments, operations, and supply chains. Labor Market Snapshot: Paychex reports small business employment is steady in September, with hourly earnings growth under 3%. AI for Operators: Meta says its Muse AI agent is expanding to help small businesses connect tools and handle more work.

Cybersecurity Policy: A new push in Washington frames cyberattacks as a small-business resilience issue, not just an IT problem, pointing to federal action to strengthen defenses and evaluate how much help smaller firms need. Fraud & Enforcement: The U.S. Attorney’s Office in Connecticut says it recovered $9.2M from pandemic PPP fraud cases, including a $3.09M settlement tied to a company allegedly misreported employee size. Consumer Protection: Arkansas AG Tim Griffin’s Fraud and Consumer Protection Summit drew 800+ registrants, with sessions covering scams, robocalls, AI deepfakes, and identity theft. Disaster Recovery: Minnesota flood recovery is moving into joint preliminary damage assessments starting Oct. 1, with FEMA and the SBA teaming up with state officials to document damage to homes and businesses. Cost Relief for SMBs: Georgia Gov. Brian Kemp suspended the state gas tax for 30 days and eased truck weight limits, aiming to cut fuel-driven costs for businesses and consumers. Local Business Spotlight: Iowa Sen. Joni Ernst named Ludlow’s Steakhouse as Small Business of the Week. Business Growth & Community: San Antonio reports 48,000+ verified small businesses and highlights rising local startup activity.

Opportunity Zones: Delaware Gov. Matt Meyer nominated 25 census tracts for the next round of Opportunity Zones, with Kent and Sussex counties getting the bulk of picks; certification is still needed for a Jan. 1, 2027 start. Small-Business Lending: The SBA moved to fully release funding for a bipartisan small business lending program after a legal challenge, aiming to keep credit flowing to local firms. Tech & Cyber Contracts: DLH won an NIH cybersecurity task order worth up to $19.1M, while Prometheus Security Group Global and Zignal Labs landed an AFWERX SBIR Phase I award to test a portable zero-trust security stack. Payments & Banking: Newtek Bank expanded integrations with accounting apps like QuickBooks, Sage, Xero, and FreshBooks, and Bonita Payments invested $1.5M in Clover POS hardware for New Orleans-area merchants. Healthcare Costs: Healthcare workers are dropping coverage as premiums rise, and CMS/SBA rebranded ICHRAs as CHOICE Arrangements to help small employers cut benefit costs. Fraud & Enforcement: A “Smart Rings” CEO was convicted in a near-$2M Ponzi scheme and COVID loan fraud case. Local Growth: U-Haul added a Cookeville, Tenn. neighborhood dealer, and Kinetic pushed past 38,000 fiber homes passed in Concord.

Fraud & Enforcement: A Dallas “We Buy Ugly Houses” franchise owner, Charles Carrier, was sentenced to 15+ years after a $39M investor scheme that used forged deeds and misused funds. Tax & Relief Fraud: A former IRS agent is accused of filing fake returns for alleged drug dealers, while another case charges a VA field examiner with COVID relief fraud. Capital for Small Firms: The U.S. Treasury will release about $289M to Community Development Financial Institutions after a legal fight, aiming to keep small-business lending flowing in underserved areas. Energy Costs & Data Centers: Ohio Sen. Jon Husted’s Ratepayer Protection Act would require large users like data centers to pay for grid upgrades so families and small businesses aren’t stuck with the bill. Fuel Pressure: Diesel prices topped $6 in Michigan, driving fuel surcharges and squeezing truckers, farmers, and other diesel-dependent operators. Local Growth & Jobs: Western North Carolina unveiled a long-term recovery plan after Helene focused on workforce, infrastructure, and economic diversification. Small Business Weather Reality: Hurricane Nolo forced some Hawaiʻi Island businesses to decide whether to close as power and road disruptions lingered.

Small-Business Lending Relief: Treasury will release about $289M withheld from CDFIs after a legal fight, restoring capital access for small businesses in underserved areas. Fuel Costs Squeeze: Diesel prices topped $6 in parts of the U.S., with trucking, farming, and other diesel-dependent small firms pushing surcharges or raising prices. Budget Fight Hits Programs: The White House plans to cut $810M via “pocket rescissions,” drawing bipartisan backlash and raising uncertainty for community and research funding. Fraud Crackdowns: A tech CEO was convicted in a near-$2M Ponzi scheme tied to forged patents and COVID relief fraud; another case charges a man with PPP/EIDL fraud. Local Business Impact: Hurricane Nolo disrupted Hawaii Island small businesses as roads, power, and operations were affected. Policy Watch: A proposed federal film/TV tax credit targets U.S. productions, including rural and disaster areas.

Local Business Spotlight: Easton, Pa. is getting a new event venue, Easton Speakeasy & Dining Room, with a renovated original Prohibition-era speakeasy set to host ticketed events starting in October and private parties later this fall. Fraud & Enforcement: A former tech CEO, Michelle Bisnoff, was convicted in federal court on a near-$2M Ponzi scheme and COVID relief fraud tied to alleged misuse of smart ring patents. Small-Business Finance & Risk: A Fortville, Ind. man was indicted for allegedly submitting fraudulent PPP and EIDL applications for a car wash/repair and pet care businesses, using funds for personal spending. Cost Pressure on Operators: Diesel prices pushed above $6 a gallon, driving fuel surcharges and squeezing truckers, farmers, and other diesel-dependent small businesses. Policy & Funding Fight: The White House says it will cut $810M in congressionally approved spending via “pocket rescissions,” drawing backlash from lawmakers over whether the move bypasses Congress. Workforce & Training: Maine community colleges received a $5M SBA grant to expand no-cost manufacturing classes, aiming to feed hiring needs for small- and medium-sized manufacturers. Tech & Data Security: Chase rolled out a Data Security Center in its app to help customers manage connected apps and third-party data sharing. Local Government Scrutiny: Pinellas County’s airport overhaul drew questions over scoring tied to minority and small-business status after federal rules changed. Energy Savings: A new Elgin, Ill. solar farm is expected to cut energy charges for 580 low- and moderate-income households and also benefit small businesses and local institutions.

Migration & Taxes: Washington millionaires are reportedly eyeing Florida real estate as a new millionaire income tax in the Pacific Northwest boosts the appeal of Florida’s 0% income tax and $0 capital gains. Healthcare Costs: Some healthcare workers are dropping health insurance due to affordability pressures, raising concerns about delayed care and strain on already-stretched systems. Local Business Ownership: Durham’s “Keep It Durham-Owned” initiative is pushing employee ownership models, highlighting a path for small firms to stay local and worker-run. Postal Access: USPS is facing backlash over plans to permanently close the shuttered Allston post office in Boston, with officials saying the neighborhood was promised a replacement. Employee Ownership Success: In North Carolina, a violin shop’s workers became owners after banks balked—using specialized cooperative lending and legal help to finance the transition. Banking Regulation: The Fed is working on raising bank oversight thresholds, which could reduce compliance burdens for some lenders and spur consolidation. Small-Business Workforce Training: Maine received a $5M SBA grant to expand no-cost manufacturing classes at community colleges. Energy Costs for SMBs: A new Elgin solar project is expected to cut power bills for low- and moderate-income households and also benefit three small businesses. Cash-Flow Reality: A Xero report finds U.S. small businesses are getting paid late, with average payment delays adding up to major working-capital stress. Banking Product Update: Chase launched a Data Security Center to help customers manage connected apps and third-party data sharing. Restaurant Distress: A Village Inn franchisee in Florida filed Chapter 11, citing hurricane fallout, weak sales, and rising costs.

Banking & Regulation: The Fed is weighing higher asset thresholds that trigger stricter oversight for big banks, which could reduce compliance burdens and spur consolidation. AI & Jobs: Sen. Mark Kelly’s proposed “AI Horizon Fund” would use new taxes on digital ads, AI-generated data use, and AI firms’ excess profits to pay for worker programs and unemployment benefits. Small Business Training: Maine Community College System received a $5M SBA grant to expand no-cost manufacturing classes, aiming to feed local small- and mid-sized manufacturers with trained workers. Disaster Loans: SBA low-interest disaster loans are now available for Pine Ridge Reservation storm and flooding damage, including support for businesses and nonprofits. Fuel Costs Squeeze: Diesel prices hit record highs, pressuring truckers, farmers, and businesses that rely on diesel-powered logistics. Cyber/Data Sharing: Chase rolled out a Data Security Center in its app to help customers see and manage which connected apps share their financial data. Local Business Stress: A Village Inn franchisee in Florida filed Chapter 11 after reporting $554K in liabilities, citing hurricane fallout, weak sales, and rising costs. Courts & Predictability: A Montana chamber endorsed a ballot measure to keep judicial elections nonpartisan, arguing small businesses need consistent rulings. Broadband Expansion: Spectrum expanded fiber service to 10,000+ homes and businesses in Polk County, with similar rural buildouts in Montana.

Fed Oversight Shift: The U.S. Federal Reserve is considering raising the asset thresholds that trigger tougher stress-test rules for big banks, potentially easing compliance burdens and encouraging consolidation. AI Skills for SMBs: The Battle Creek Area Chamber of Commerce is hosting free AI training for small businesses through the U.S. Chamber Foundation’s Small Business B(AI)sics program. Data Center Cost Pressure: Alabama Sen. Katie Britt cosponsored the Ratepayer Protection Act to stop families and small businesses from subsidizing data centers via separate utility rate standards. Banking & Risk: A new class action targets GoDaddy after a sharp stock drop tied to customer acquisition claims, with an Oct. 26 lead plaintiff deadline. Local Recovery & Jobs: North Carolina Commerce says it’s administering $1.4B in Hurricane Helene recovery funds, including support for housing, infrastructure, and small businesses. Small Biz in the Spotlight: A veteran-owned Detroit-area company (VETTED) released free guides explaining how families can access VA-paid home care. Elections & Small Business: Colorado’s House race coverage highlights candidates’ affordability and “working people” messaging as voters look for change.

Disaster Loans & Recovery: The SBA is holding a disaster recovery info meeting in Moberly, Mo., and has approved disaster loans for Erie-area storm victims in Pennsylvania and drought-impacted Maryland businesses and nonprofits, with low-interest terms and deadlines that small firms need to watch. Rising Costs Hit Operators: Diesel prices topped $6 a gallon, squeezing truckers and farmers as some businesses report supply issues, while local leaders push relief steps like access to dyed diesel for agricultural use. SBA Contracting Rules Could Shift: The SBA proposed major changes to federal “small business” size standards, potentially letting more firms qualify for set-asides and reshaping competition in government contracting. Tech for Small Business Compliance: A San Antonio veteran-founded AI startup is helping small businesses pass security audits and compliance certifications—turning paperwork-heavy processes into a product. Banking Expansion: JPMorganChase opened a new Cedar Rapids branch, highlighting support for small businesses and cash-flow planning. Fraud & Enforcement: A Dallas “We Buy Ugly Houses” franchisee was sentenced to 15+ years for investor fraud, and a North Carolina tax preparer was sentenced for filing false returns tied to fake small-business losses. Local Grants for Safety & Main Streets: Fort Wayne received Norfolk Southern grants totaling $54,109 for corridor beautification, crime-prevention upgrades, and free fire extinguisher training for community and local businesses.

Disaster Readiness: Hurricane Polo churned toward Mexico’s Pacific coast with life-threatening rain and flooding risk, while Tropical Storm Nolo neared Hawaii with a hurricane watch for the Big Island and up to 20 inches of rain forecast—bad news for small operators along the coast. Retail & Payments: Square added an Apple Business integration so small sellers can manage location info in one place and keep Apple Maps/Siri/Wallet details current. Risk Management for SMBs: Brenden Theaters is using Kalshi prediction markets to hedge quarterly film-release uncertainty, a sign more small businesses are turning to “event contracts” to manage financial swings. Fraud Crackdown: The SBA suspended more than 96,000 Illinois borrowers tied to about $2.9B in suspected PPP/EIDL fraud, continuing pandemic-loan enforcement. Small-Business Tech & Hiring: Verizon pledged $70M for nationwide AI training with partners like Goodwill, targeting job seekers, small businesses, and educators. Local Growth & Funding: Crux Analytics raised $2.2M seed to help financial institutions win small-business clients without adding headcount. Online Lead Timing: New data found 38% of small-business website chats arrived after hours, with many still leaving contact info—an operations wake-up call for owners. Entrepreneurship Pulse: A survey found 64% of U.S. adults are sitting on business ideas they never launched, highlighting a big gap between intent and action.

AI Skills Push: Verizon is investing $70M in “Verizon AI Skills for America,” adding $50M to its earlier $20M effort to give free AI training to jobseekers, displaced workers, educators, and small businesses via partners like IBM, Google, Microsoft, Coursera, Anthropic, and OpenAI. Disaster Relief for Main Street: Uber is sending $200K to Spokane restaurants and drivers hit by August fires through its Disaster Relief Fund, while Maryland’s SBA approved Economic Injury Disaster Loans for Anne Arundel County after the Empire Towers structural emergency and will open an outreach center in Glen Burnie. Manufacturing Workforce Boost: Arizona Western College won a $5M SBA grant to expand manufacturing programs and support Southwest Arizona small manufacturers. Rising Insurance Costs: Colorado finalized premium hikes—about 10% for individual and 14% for small-business markets—citing the lack of extended enhanced federal premium tax credits. Fraud Crackdown Watch: DOJ’s PPP enforcement focus is shifting from flashy criminal cases to civil False Claims Act matters tied to eligibility, including employee headcount and affiliation rules. Small Business Innovation Funding: NSF launched a $20M two-year pilot to help small businesses commercialize deep technologies and bridge the “valley of death.”