President Donald Trump’s pick to lead the Small Business Administration (SBA), former U.S. Sen. Kelly Loeffler (R-GA), has moved one step closer to confirmation after securing support from the U.S. Senate Small Business Committee.
The Automotive Service Association (ASA) welcomed the decision, emphasizing the importance of SBA loans in providing auto repair businesses with critical capital to remain competitive. The nomination now awaits a full Senate vote.
On the same day, the U.S. House Small Business Committee held its first hearing of the 119th Congress under the theme “Hope on the Horizon: Prioritizing Small Business Growth.” A key focus of the hearing was the Section 199A tax deduction, a provision allowing small businesses structured as S corporations to deduct 20% of qualified income. With this deduction set to expire at the end of 2025, industry advocates, including ASA, are pushing for its permanent extension.
“The loss of this deduction would amount to a steep tax increase for the vast majority of small businesses,” said Alice Frazier, president and CEO of the Bank of Charles Town, during the hearing.
ASA recently joined a coalition supporting the Main Street Tax Certainty Act, introduced by U.S. Sen. Steve Daines (R-MT) and U.S. Rep. Lloyd Smucker (R-PA), which would eliminate the deduction’s sunset clause. Given that 95% of all U.S. businesses operate as pass-through entities, industry leaders argue that making the deduction permanent is crucial for long-term financial stability.
Workforce development also emerged as a critical issue during the hearing. Freshman U.S. Rep. Johnny Olszewski (D-MD) highlighted his experience expanding free community college programs, suggesting bipartisan investment in training initiatives could help address ongoing labor shortages.
ASA applauded the committee’s attention to these pressing concerns, stating that workforce gaps have directly impacted auto repair businesses’ ability to serve customers. As the SBA nomination and small business tax policy debates progress, ASA continues to advocate for legislative solutions that support the industry’s growth and sustainability.
