DENVER (KDVR) — With four days remaining until Inauguration Day, financial experts say small businesses could bear the economic brunt of the presidential transition of power.
“This year, unfortunately, is a lot different. The biggest impact of all in the transition and the most immediate can potentially be on small business,” said Mac Clouse, a finance professor at the University of Denver.
He says this transition of power is unprecedented. In the short term, he worries about rioting, vandalism and looting impacting small businesses that cannot afford repair costs.
“They’re struggling during this pandemic to get by and additional costs and shutdowns and everything associated with this disruption just has significant negative impacts,” Clouse said.
Some businesses in central Denver were looted during riots last summer.
“Some of them just could not reopen. When you look at the costs associated with fixing their stores, with replenishing their shelves because of looted goods and then the pandemic, that suggests even if they do get everything fixed, they’re not going to have many customers,” Clouse said.
If businesses can survive the next few days, Clouse says they can expect more consistency from an economic standpoint during the next four years.
“Corporations, for example, now know that they’re going to be seeing an increase in the corporate tax rate. But to know that’s going happen means they can plan for it,” Clouse said.