Eastern Iowa business leaders praise Trump administration’s work in Cedar Rapids meeting

Optimism abounded and the word “tariff” was scarce as Eastern Iowa business leaders heaped effusive praise on President Donald Trump’s top small business official.

U.S. Small Business Administrator Kelly Loeffler, who is in Iowa for the first time, participated Monday in a small business roundtable discussion with business leaders and Iowa Republican U.S. Sen. Joni Ernst and U.S. Rep. Ashley Hinson at the Cedar Rapids Metro Economic Alliance.

The business leaders — who came from banking, manufacturing, highway contracting, printing, and service — heaped praise on the federal officials for their support of Republicans’ tax and spending policy that was signed into law on July 4.

The Iowa business leaders said they believe the legislation will create more certainty for businesses and highlighted elements of the bill, like tax reductions on businesses, the elimination of taxes on tips and overtime pay, and the 20 percent small business tax deduction that was made permanent.

“I’m a growth guy. I want to build units,” said Jerry Akers, who owns Great Clips stores in the area. Akers told Loeffler, Ernst and Hinson that the administration is providing “protection” for small businesses that helps them keep more revenue. “The more money we (business owners) have, the more we can do for employees.”

Earlier this year, while Republicans’ legislation was being considered, Ernst invited Akers to speak at a joint hearing of the House Committee on Small Business and the Senate Committee on Small Business and Entrepreneurship.

Bryce Ricklefs, owner of the Anamosa-based construction company Boomerang, said the elimination of taxes on overtime has removed a hurdle for some seasonal workers — like those in construction. Ricklefs said there is a “golden rule” in construction that it was not worthwhile to work overtime because of the taxes.

“So that’s a big boost for us,” Ricklefs said. “We’re hoping that stays in long-term.”

Matt Everson, state director of the National Federation of Independent Business, praised the 20 percent small business tax deduction being made permanent and called the legislation “such a game-changer.”

“You’re going to unleash some stuff here in the economy,” Everson said. “With this and (a possible reduction in) interest rates, you’re going to see massive investments.”

None of the business leaders mentioned the tariffs that have been deployed by the Trump administration. The U.S. and China have been engaged in a 90-day tariff truce during their latest trade negotiations. CNBC reported Monday that Trump had signed another 90-day delay on high U.S. tariffs on Chinese goods, ahead of the first truce’s expiration Tuesday.

The U.S. Chamber of Commerce, on its website, warns that “broad-based tariffs raise prices for consumers and businesses and harm economic growth. They cause uncertainty and disrupt supply chains and are an especially big problem for small businesses that don’t have as many resources to withstand them.”

Loeffler said the Trump administration is working to empower “our free enterprise economy.”

“This is making sure that small businesses, that farmers, that students, that people have a path to the American dream right now,” Loeffler said. “These are pro-family, pro-small business, pro-made in America policies that are happening right now.”

  Buy Photo

Juliet Abdel, who was recently selected as the new president and CEO of the Cedar Rapids Metro Economic Alliance, said the roundtable discussion generally matched what she hears from Eastern Iowa businesses, and that business leaders are now watching to see the impact of the federal legislation.

“There’s been this feeling of, ‘Let’s wait and see where things play out. Let’s wait and see if there is a reduction in taxes, if there is an opportunity for us to access specific programs,’ if there is this renewed interest for them to continue knowing that the environment, the economy will continue along with them,” Abdel said.

According to the Iowa Association of Business and Industry’s latest survey of its members, 21 percent of Iowa business leaders had an optimistic view of the economy coming into the third quarter of 2025. That’s down from the 50 percent who said the same in the first quarter, but consistent with the second quarter, according to ABI.

In that latest ABI survey, 63 percent of respondents said they believe the federal legislation will have a somewhat or very positive impact on their business or industry. ABI President Nicole Crain, who participated in Monday’s roundtable discussion, said in an ABI press release that Iowa’s business climate is “steady, but not without pressure,” and that business leaders are still investing and hiring, “but with greater awareness of the economic headwinds that exist.”

Criticism of the legislation has focused especially on health care: the legislation will reduce Medicaid spending by $941 billion over 10 years, according to the Congressional Budget Office. Advocates are concerned that millions will lose health insurance and hospital leaders — especially in rural areas — are concerned it will lead to closures.

Speaking to reporters after the roundtable discussion, Loeffler pointed to the legislation’s expansion of health savings accounts, and Hinson said the bill should help boost the health care workforce.

“Workforce has been one of the driving costs of health care, labor costs,” Hinson said. “So when you think about recruiting and retaining people, coming out of COVID, that was a huge challenge for so many of our health care providers here in Iowa.

“So a bill like this is going to incentivize people to stay and work those overtime hours, which helps our nursing homes. It helps our health care hospitals, our rural hospitals as well, to provide that care and then control one of the costs that was one of the biggest drivers of health inflation.”

Earlier Monday, Ernst and Hinson toured Legacy Manufacturing in Marion, a tool and equipment manufacturer. Ernst and Hinson also met with company leaders for a discussion that was closed to the press.

  Buy Photo

Comments: (515) 355-1300, erin.murphy@thegazette.com

Get the latest Iowa politics and government coverage each morning in the On Iowa Politics newsletter.