What the "Big Beautiful Bill" Means for Small Businesses

July 31, 2025 | BusinessFocus-Business Focus

Small businesses are the heartbeat of our communities. We are proud to walk alongside you through every season of growth. The Big Beautiful Bill brings some meaningful wins for business owners, including expanded tax deductions, simplified reporting for online payments, and new credits to support your team.

We’ve put together a quick summary to help you understand what’s changing and how you might benefit. If you’re planning a big investment, hiring staff, or just want to make sure you’re set up for success, we’re here to help.

Business Spotlight: What the "Big Beautiful Bill" Means to Small Businesses

You may have heard talk of the One Big Beautiful Bill out of Washington, but what’s actually in it for small business owners here in our communities? Turns out: quite a bit.

From new tax breaks to less paperwork, this legislation includes several wins for local shops, side hustles, contractors, ag businesses, and everyone in between.

Let’s break it down.

1. More Tax Savings, Made Permanent

20% QBI Deduction stays for good

If you’re an LLC, sole proprietor, S-Corp, or other pass-through entity, the Qualified Business Income (QBI) deduction is now
permanent, with a guaranteed minimum deduction of $400 for incomes over $1,000.

100% Bonus Depreciation

Buy new (or used) equipment, software, or work vehicles? You can write off 100% immediately—no waiting for depreciation.

Section 179 Expanded

The cap jumps from $1.25M to $2.5M, more flexibility to invest, deduct, and grow.

2. Less Paperwork for Side Hustles

The dreaded 1099-K form is now only triggered if you earn $20,000 AND have 200+ transactions annually (up from $600!).

This is huge for:

Online sellers
Ag producers selling direct-to-consumer
Contractors & gig workers
Local makers using Venmo, PayPal, etc.

Bank Tip: Still keep records, but you’ll likely avoid surprise tax forms now.

3. Expanded Employer Childcare Credit

Good news for businesses supporting their employees:

Claim 50% of childcare facility or service costs, up to $600k annually
You can partner with other businesses to qualify

Bank Tip: If you’re thinking creatively about childcare for your team, this helps make it more affordable.

4. Bigger Paychecks for Hourly Workers

Federal income tax on tips and overtime eliminated (up to $25k/year starting 2026)
This puts more money in employees’ pockets—without costing your business more

Bank Tip: Use this as a hiring edge, especially in food service, retail, and ag labor markets.

5. Things to Watch

Cuts to Healthcare & SNAP

Changes to Medicaid and food programs could shift costs to employees—or impact foot traffic in some local shops.

Bank Tip: Work with your Security Wealth Strategies advisor to prepare for shifting household budgets in your community.

What Should You Do Next?

*Action*	Why it matters
Review capital equipment needs	Deduct purchases faster - great for planning upgrades
Track payment app income	Stay ahead of evolving reporting rules
Explore the childcare tax credit	Especially helpful for businesses with younger teams
Reassess hiring strategy	Overtime & tip tax relief = stronger recruiting tools
Talk to your Security Bank Advisor & tax pro	We'll help make sure you're positioned to benefit fully

We’re Here to Help Your Business Thrive

Whether you’re a one-person shop or a growing team, we’re proud to support the backbone of our communities. Have questions about how these changes could help your business? Let’s talk.