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Immigration Orders and Their Economic Impact on Small Business: Insights from Attorney and Former Immigration Judge Rob Ratliff

Client Alert

In his second term, President Donald Trump has issued a series of executive orders that significantly alter the landscape of immigration policy in the United States. What will the impact of those orders look like in our local communities? Below, we summarize these key orders:

  1. Enhanced Vetting of Visa Applicants - This order mandates stricter "enhanced vetting" for all visa applicants, focusing on thorough checks that could delay visa processing and increase scrutiny at entry points.
  2. Termination of Birthright Citizenship - Targeting the 14th Amendment's guarantee of citizenship to those born on U.S. soil, this order seeks to deny citizenship to children of non-citizen parents, effective 30 days post-signing. Legal challenges are expected due to its constitutional implications.
  3. Border Security and National Emergency Declaration - Declares a national emergency at the southern border, allowing for military deployment and the construction of additional barriers, with a focus on immediate removal of undocumented immigrants.
  4. Suspension of U.S. Refugee Admissions Program (USRAP) - Temporarily halts the refugee program from January 27, 2025, with potential for case-by-case admissions at the discretion of DHS and State Department.
  5. Asylum Policy Overhaul - Revokes previous policies allowing asylum seekers entry, reinstates the "Remain in Mexico" policy, and aims to end "catch and release", potentially blocking asylum seekers at the border.
  6. Revocation of Previous Immigration Executive Orders - Repeals numerous Biden-era executive orders on immigration, including those on enforcement priorities, refugee resettlement, and family reunification.
  7. Designation of Cartels as Foreign Terrorist Organizations - Labels certain international cartels as terrorist groups, enabling broader legal actions against members and supporters. 
  8. Trade Policy Review and Immigration - Initiates a review of trade agreements like USMCA, potentially affecting visa statuses like TN, E, and H-1B1 visas. 
  9. End of CBP One App and Parole Programs - Terminates the use of the CBP One app for scheduling asylum appointments and ends categorical parole programs for migrants from select countries. 
  10. Homeland Security Task Forces - Establishes task forces to enhance cooperation between federal, state, and local law enforcement to remove undocumented individuals.

Impact on Small Businesses Owned by Individuals Without Legal Status:

The collective impact of these executive orders could be profound for small businesses owned by individuals without legal status. Here is a brief assessment:

  • Increased Enforcement and Raids: The focus on detention and deportation could lead to fear among undocumented business owners, potentially reducing workforce participation or leading to business closures due to raids or the threat thereof. 
  • Visa Processing Delays: Enhanced vetting could slow down or complicate visa  renewals or applications for employees, affecting business operations, particularly in sectors reliant on foreign labor.
  • Loss of Business Confidence: The uncertainty and fear of deportation might lead to a decrease in entrepreneurial activity among undocumented immigrants, impacting local economies.
  • Legal Status Challenges: The proposed changes to birthright citizenship could affect family stability, potentially influencing business decisions and future planning.

For Ohio, according to the American Immigration Council's data, approximately 8.3% of the state's small businesses are owned by immigrants. While exact numbers for undocumented immigrant business owners are not distinctly tracked, if we estimate based on national proportions (where around 20% of immigrant business owners might be undocumented), Ohio could see significant economic impacts. The Small Business Administration, SBA, indicates, immigrant owners consist of roughly 18% of business owners with employees and almost 23% of business owners without employees. Immigrant-owned businesses are found in every sector of the U.S. economy. Immigrants made up 36.8% of employer businesses in accommodation and food services. Transportation and warehousing had the largest share of immigrant nonemployer business owners at 46%.  

Assuming there are about 100,000 immigrant-owned businesses in Ohio (based on various studies), around 20,000 could be owned by undocumented individuals. These businesses contribute significantly to the state's economy, with an estimated $3.5 billion in income from immigrant entrepreneurship annually, affecting job creation, tax revenue, and local spending.

In 2012, the State of Alabama experimented with at the time, the nation's strictest immigration laws. While those laws were eventually declared unconstitutional by the Court, in the months that followed the laws' passage, the State lost numerous small businesses.  One study predicted the economic impact at the time to be $10.8 billion, or 6.8% of the State's GDP.

This scenario suggests a potential economic downturn for Ohio if business operations are disrupted or if owners leave or cease operations due to immigration enforcement pressures. The exact impact would depend on the implementation and legal outcomes of these executive orders, but the overarching message is clear: small businesses owned by undocumented immigrants are at risk, potentially leading to economic ripple effects in communities across Ohio.

For guidance on how these executive orders may impact your business or immigration status, please contact BMD Member Robert Ratliff at raratliff@bmdllc.com. With over 25 years of trial experience in criminal defense and immigration law, Robert’s unique insights as a former Immigration Judge allow him to offer strategic guidance for clients facing complex immigration challenges.


OHIO ADOPTS THE SERIES LLC: Implementation of Ohio’s Revised Limited Liability Company Act is Coming

On January 7, 2021, Ohio adopted S.B. 276. The new legislation establishes the Ohio Revised Limited Liability Company Act (“ORLLCA”) which effectively replaces the current Ohio LLC Act. ORLLCA will be fully effective as of January 2022. While the new law contains numerous changes to the existing LLC landscape, below is an overview of some of the key differences under the ORLLCA.

Will Federal Legislation Open Cannabis Acquisition Floodgate?

Are potential buyers quietly lobbying at federal and state levels to kick open the door to launch a new round of strategic acquisitions? Will presently pending federal legislation, the SAFE and MORE Acts, providing safe harbor for banks and re- or de-scheduling marijuana, be sufficient to mobilize into action major non-cannabis companies that previously shunned the cannabis industry due to the unknown implications of owning businesses whose activities are illegal under federal law?

The Future of the Families First Coronavirus Response Act

Over the last year we all have had to adjust to the new normal ushered in by the coronavirus pandemic. Schools and daycares closed, businesses transitioned from in-office work to work from home, bars and restaurants have closed their doors...all to slow the spread and try to prevent this pandemic from spiraling out of control. The start of the pandemic was utter pandemonium. Working parents trying to balance both caring for their now at-home children and their livelihood. Businesses trying to decide how to implement leave policies with limited information. Employees determining if they could financially afford to take time off. We were all flying by the seat of our pants trying to adjust to our new normal.

Ohio Supreme Court Clarifies Medical Statute of Limitations

The Ohio Supreme Court issued a decision in late December that clarifies and finalizes the Ohio law regarding the period of time in which patients can assert claims for medical malpractice. The Court was examining the interplay between three different statutes being the statute of limitations, the statute of repose, and the savings statute.

Ohio Hospitals and Healthcare Clinics: It’s Time to Revisit Your Billing and Collection Practices

According to a recent Cuyahoga County case, certain healthcare entities may not be protected from liability when engaging in unfair or deceptive billing acts. This decision is consistent with the growing trend across the country to encourage price transparency and eliminate unfair surprise billing practices by health care organizations. Now is the time for hospitals and other health care organizations to revisit their billing and collection policies and procedures to confirm that they are legally defensible and consistent with best practices.