Ernst Works to Grow the Small Business Pet Economy

WASHINGTON - Today, Senate Committee on Small Business and Entrepreneurship Chair Joni Ernst (R-Iowa) highlighted how Congress can support pet small businesses and their paws-itive impact on the economy by passing her bipartisan Made in America Manufacturing Finance Act.

Ernst noted that spending on pets reached a record high last year and called on the Senate to pass her legislation that would double the 7(a) and 504 loan limits from $5 million to $10 million for small manufacturers, so businesses like Blue-9 Pet Products in Maquoketa, Iowa can continue to modernize, grow, and train a new generation of American workers.

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Watch Chair Ernst's remarks here.

Ernst's full remarks:

"Today folks, we are talking about our beloved pets and the entrepreneurial ecosystem that supports the ever-growing pet industry.

"Pets have a very special place in our lives, in our families, and even here in the Senate - and you can always ask Senator Justice who often travel with his dog, Babydog. They are there to greet us, support those with disabilities, and help our veterans regain their independence.

"Pets are abundant in Americans' lives, with around 57% of households owning at least one. In rural areas, this number is even higher: 71% of households have pets, and 47% report owning more than one animal.

"As more Americans have welcomed pets into their homes, businesses supporting our animals thrived. This growth has continued in our current Golden Age, where spending on pets is estimated to have reached $157 billion in 2025, a record high, and a 75% increase since 2018.

"As the pet economy continues to grow, the number and variety of small businesses who support our pets continues to increase.

"Local vets, community trainers, and neighborhood pet stores are some of the first places people go to get support for their animals.

"Some of the small businesses we will hear from today participate in franchises throughout the country, serve on Main Street, and provide quality medical care when our pets need it most. They do all of this while investing in their employees and giving back to their communities.

"However, the difficulties pet small businesses face are no different to those who participate in any other sector of the economy.

"Accessing capital, navigating regulations, and recruiting qualified employees are just some of the many challenges these entrepreneurs encounter.

"We are here today to talk about how to support these business owners.

"We can start by passing my Made in America Manufacturing Finance Act, which will raise the Small Business Administration's 7(a) and 504 limits from $5 million to $10 million for small manufacturers, like Blue-9 Pet Products, that manufactures pet training products in Maquoketa, Iowa.

"I am grateful to my colleagues, including Senators Coons, Young, Hickenlooper, and Husted for their bi-paw-tisan support.

"This bill has already passed the House, and I will continue to work to pass it through our Senate chamber.

"As small businesses and their employees navigate tax season, they will be able to invest more of their profits in their employees and business growth, thanks to the Working Families Tax Cuts that are now law.

"From pet groomers benefiting from the 'no tax on tips' provision to small business owners taking advantage of the qualified business income deduction, more of folks' hard-earned money is staying in their own pockets.

"Today, we will also have a chance to examine the challenges businesses in rural areas face and the effective ways small business owners everywhere can recruit and retain employees.

"The pet economy is just as wide and diverse as the small businesses who participate in it. They care for our animals as their own, and it is important that we support them as they pursue growth and expansion of their businesses.

"I want to thank our witnesses for being with us today. We look forward to your testimony and hearing about your important work and the valuable services you provide to our communities."

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