News Summary
The expiration of enhanced premium tax credits under the Affordable Care Act could severely impact Georgia’s small businesses, which make up over 99.6% of the state’s economy. With small businesses employing nearly half of the workforce, losing these credits may lead to increased health insurance costs, jeopardizing both employment and access to healthcare. The situation is particularly precarious for Black and underserved communities. Experts warn of a potential $4.16 billion loss in GDP and the disappearance of 75,000 jobs annually by 2035 if the credits are not renewed.
Atlanta, Georgia – The expiration of enhanced premium tax credits (EPTCs) under the Affordable Care Act Marketplace poses a significant threat to small businesses in Georgia, which consist of over 99.6% of the state’s total businesses. With small businesses employing nearly half of the workforce in Georgia, the potential loss of these credits could drastically affect both employment and healthcare options for many residents.
Small businesses, particularly in Atlanta where 97% of Black-owned businesses are classified as small or sole proprietorships, are facing challenges regarding access to capital and contracts, skilled staff, and systemic racial barriers. These financial strains are compounded by the potential expiration of EPTCs, which play an essential role in making health insurance affordable for business owners and their employees. If Congress fails to act before the end of 2025, many Georgia residents could find health insurance unaffordable, jeopardizing their access to necessary coverage.
A recent analysis from the US Department of Treasury in 2024 indicates that small business owners are three times more likely to secure health insurance through the ACA Marketplace compared to other Americans. The Marketplace provides flexible and affordable coverage options, contributing to a record low uninsured rate among small-business employees and self-employed individuals in 2022. The impending expiration of EPTCs could reverse this progress, resulting in a substantial increase in uninsured individuals across the state, with many losing access to health coverage altogether.
The impact of this potential loss is particularly critical for Black and underserved communities, where lack of access to healthcare can further exacerbate existing health disparities. The Urban League of Greater Atlanta is actively collaborating with both public and private sectors to support the growth and sustainability of small and minority-owned businesses in the community. This initiative is crucial as these businesses are integral to the local economy.
Data suggests that the projected economic impact of the expiration of EPTCs could be staggering. Over the first ten years following the expiration, Georgia’s GDP could suffer a loss of more than $2.01 billion, with approximately 39,000 jobs disappearing annually. By 2035, the projected annual GDP loss may rise to about $4.16 billion, translating to an estimated loss of 75,000 jobs each year. These figures highlight the dire economic consequences that could follow if the EPTCs are not renewed.
There is an urgent call for Congressional representatives to support the renewal of the EPTCs and to advocate for the expansion of federal government contracting and access to capital programs that promote small and minority business growth. The sustainability of Georgia’s small business sector relies on accessible health insurance options, particularly during these challenging economic times.
As the deadline approaches for potential legislative action, the stakes are high for small business owners and employees, particularly in a state where small businesses have proven to be the backbone of the economy. If safety nets like the EPTCs are allowed to expire, the impact will extend far beyond business owners, influencing their employees and the overall health of Georgia’s communities.
Deeper Dive: News & Info About This Topic
- Atlanta News First
- Wikipedia: Small business
- Rough Draft Atlanta
- Google Search: Small business health insurance
- 11 Alive
- Google Scholar: Small business support
- Atlanta Daily World
- Encyclopedia Britannica: Small business sustainability
- Atlanta Downtown
- Google News: Small business impacts
Author: STAFF HERE SAVANNAH WRITER
SAVANNAH STAFF WRITER The SAVANNAH STAFF WRITER represents the experienced team at HERESavannah.com, your go-to source for actionable local news and information in Savannah, Chatham County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Savannah Music Festival, St. Patrick's Day Parade, and Savannah Jazz Festival. Our coverage extends to key organizations like the Savannah Area Chamber of Commerce and United Way of the Coastal Empire, plus leading businesses in aerospace, education, and logistics that power the local economy such as Gulfstream Aerospace, Savannah College of Art and Design, and Colonial Group. As part of the broader HERE network, including HEREAtlanta.com and HEREAugusta.com, we provide comprehensive, credible insights into Georgia's dynamic landscape.
