In a recent Associated Press article, Joyce Rosenberg addresses the issue of whether a minimum wage increase in Ohio would affect small businesses. As she writes, the pay raise will also affect other related payments, such as compensation, perhaps leaving a greater impact on local owners.
The co-owner of a local restaurant told the source that he was "preparing for" a possible raise. Though debate continues over the best federal minimum wage, some states have either raised theirs or made plans to do so in the near future.
As of 2016, the Ohio Department of Commerce reported that the statewide minimum wage is $8.10 per hour, 85 cents higher than the national requirement. Tipped employees can have a minimum wage as low as $4.05 before tips, and employers are compelled to keep records of employee information, including pay amount and hours worked.
"Small business owners need to be ready to adapt."
Whatever their feelings on issues like this, small business owners need to be ready to adapt in the face of a wage change or some other significant policy update. If the new procedures require more sophisticated processing systems, for example, it may be time for businesses to achieve more capital to help them do so.
One of the uses of the SBA Community Advantage Loan program is the augmentation of working capital, as well as debt service coverage. This program in particular offers as much as $250,000 in loans, with a wide variety of eligible businesses, including any in the manufacturing, commerce and service industries. You can visit our Community Advantage page to learn more about this particular offering.
When business factors change, owners need to be able to change with them. Having an Ohio SBA loan available will make obtaining needed capital that much easier, especially if providers understand local regulations.