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The impending retirement of millions of small business owners, primarily from the baby boomer generation, poses a significant challenge for the US economy. According to the Small Business Administration, there are approximately 33 million small businesses in the US, but fewer than 7 million employ people. The rest are often solo operations or side gigs with little to no value if the owner were to suddenly disappear. Many small business owners, like the author, operate in a service-based economy, which accounts for 77% of US GDP. These businesses are often built around the owner, with no hard assets to sell, making them unattractive to potential buyers. The author's own business is a prime example, with no valuable assets, a virtual office, and remote employees. A recent McKinsey report predicts a "great ownership transfer" over the next 10 years, with as many as 6 million small and midsize American businesses changing hands. However, without intentional action, many viable small businesses may close rather than transfer ownership. So, what are the options for these business owners? They could hand down the business to their kids, but this only works if the kids are interested and capable. Another option is to build an actual business with value by changing billing models, enforcing contracts, and creating a sustainable brand. However, this approach can be exhausting, especially for older business owners. A more practical approach for service business owners is to build cash and save for retirement. The author has been pulling profits out of their company and saving, planning for retirement through their savings rather than their business. This transition presents a great opportunity for younger entrepreneurs, who could partner with or purchase businesses from older owners, leveraging their existing operations, customers, and relationships to make improvements and grow the business.

The recent decision by the Small Business Administration (SBA) to deny loans to small business owners who are not US citizens has raised concerns about the politicization of the agency. Kelly Loeffler, the new administrator of the SBA, announced that the agency would no longer approve loans to small business owners unless they are US citizens, effectively excluding legal immigrants with green cards and full residency from accessing loans.This move has been criticized for being a political decision that harms small businesses and the economy. The SBA's mission is to support small businesses, which are the backbone of the US economy. By denying loans to certain entrepreneurs, the agency is limiting access to capital and hindering the growth of small businesses that could benefit their communities and the country at large.The decision is also seen as a reaction against the Biden administration's efforts to promote diversity and inclusion. Under Biden, the SBA had often featured diverse groups of business owners in its marketing materials, but this new policy seems to be tailoring the message to serve the Trump administration's political agenda.Supporting small businesses should not be a controversial position, and most of the time it is not. However, the SBA's politicization has made it a propaganda tool for the party in power, rather than a neutral agency serving the interests of small businesses.To address this issue, some suggest taking the SBA out of the government and spinning it off into a separate entity, similar to the Manufacturing Extension Partnership or the MITRE Corporation. This entity would be funded by both the government and private industry and would be required to report to Congress through its existing small business committees.The goal of this new entity would be to coordinate government loan guarantees, assist with federal funding, and provide training, counseling, and support to small businesses. This would help to insulate the agency from political cycles and ensure that it serves the interests of small businesses, rather than the interests of the party in power.