The newly passed infrastructure bill by President Biden is providing a light at the end the tunnel of recovery after Covid. The $1.2 trillion bill is expected to be a major boon to small businesses, particularly those in a position to support infrastructure-related projects.
How can your business make the most out of the new legislation? Take a look at some of the highlights and benefits of the new legislation and learn how you can get your business ready to take advantage.
Infrastructure Bill Highlights
The Infrastructure Investment and Jobs Act of 2021, a historic bill, provides funding for much-needed traditional infrastructure improvements such as roads, highways and bridges. It also includes spending on airports and waterways. The bill also includes funding for modern infrastructure, such as electric vehicle charging stations and cybersecurity initiatives. Specific allocations include
* High-speed Internet: $65 billion
* Roads, highways, and bridges: $110 billion for new and repaired infrastructure
Investment in electric vehicles – 15 billion dollars
* Modernizing airports: $25 billion
Water Safety – $55 Billion
Upgraded electricity grid – $73 billion
* Public transit expansion – $39 billion
The infrastructure bill represents a major investment in the aging U.S. Public Works System since 2009. The bill, which represents months of negotiations and the long-overdue desire for the country to repair its aging public works systems, was signed into law by President Obama on November 15, 2020.
Benefits of the Infrastructure Bill for Small Business
These numbers mean more jobs for small businesses in multiple sectors. They also translate into more work for construction companies of all kinds, as well as tax breaks and incentives to encourage sustainable business practices. The bill is expected to create two million jobs per year in the next decade, bringing the country out from a global recession and increasing its competitiveness.
Longer term, improved infrastructure will benefit small businesses across all industries, and act as a catalyst to increase productivity. Small businesses in rural areas and remote communities can become more connected to large population centers by improving logistics. Access to high-speed internet is essential for small businesses that sell products and services on the Internet.
Infrastructure bill is expected to also help the U.S. network of supply chains, which are still severely disrupted due to the pandemic. The bill provides major federal investments for each part of the freight network, including the nation’s ports. According to NFIB over 30% of small business owners reported that disruptions in the supply chain had a negative impact on their businesses.
How small businesses can prepare for Infrastructure Bill benefits
After the Infrastructure Bill is signed into Law, federal dollars will now be sent to each state for large projects. Local businesses will then be able to bid on the projects. However, there is usually a delay between the passage of a bill and an increase in business. Many small businesses that support infrastructure are preparing for the upcoming uptick in activity.
Making necessary capital expenditures to support infrastructure projects Small businesses must budget and plan to upgrade equipment, vehicles, and other fixed assets in order to support their increased business.
* Hire skilled workers to benefit from infrastructure-related opportunities – Attracting the right employees is critical as the projects increase and the labor market tightens.
* Cash available for daily operations in a major infrastructure project Winning a large contract requires a business to have enough working capital that can cover the day-to-day operating costs and unexpected costs.
QuickBridge is aware of the challenges facing small business today. We offer funding solutions for those who are positioned to gain from the Infrastructure Bill. Our advisors are experienced in helping you find the best lending solution for your business.
