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MAY 25, 2026 |
The labor squeeze isn't ending — it's reshaping who you can hire and how.
This week: ICE raids reach a tipping point, SBA doubles its loan ceiling, and tariffs send copper and steel to 50%.
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In this edition
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Growth · The hiring pool just got smaller — and US-born workers are feeling it too |
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Business · SBA doubles cumulative loan limit to $10M (effective July 4) |
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Global · APEC envoys meet in China as 50% metal tariffs reshape your costs |
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Tools · 4 picks to run your shop with fewer people |
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Counterintuitive
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ICE raids are now denting jobs for everyone — not just immigrant workers. New research released this month from Washington Post and NPR's Planet Money confirms what many service-business owners already feel on the ground: workplace enforcement is shrinking the labor pool faster than US-born workers can fill it. A Hudson Valley frozen-meals shop that pulled 20 applicants per posting in early 2025 now averages about five. The chilling effect is bigger than the deportations themselves.
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11×
Increase in ICE 'street' arrests vs. prior years
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1,400
287(g) local police deals (up from 135)
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41
States with active ICE-police partnerships
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On May 17, DHS leadership issued a directive doubling down on workplace enforcement after a brief pause in agriculture and hospitality. Large-scale worksite raids now require senior-official approval — but mid-size operations and street arrests are accelerating.
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"It's not just the workers who disappeared. The ones who are still here are scared to come in. And the American workers we hoped would replace them — they didn't show up."
— Owner quoted in NPR Planet Money, May 12, 2026
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The Bottom Line
Stop relying on walk-in applicants and Craigslist. Build a referral pipeline this month: pay current employees $250–$500 for any hire who stays 60 days. Audit your I-9 binder before ICE does it for you — every form needs a completion date within 3 business days of hire, and re-verification on expiring work auth. If you employ E-Verify, run a quarterly tentative-nonconfirmation review.
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Breaking · SBA Policy
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The SBA just doubled its loan ceiling to $10 million. Here's what that means for you. On May 18, the Small Business Administration announced a new rule allowing borrowers to combine 7(a) and 504 loans for up to $10 million in SBA-backed financing — double the prior $5M cap. The change takes effect July 4, 2026, and it's the highest cumulative limit in agency history.
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$5M via 7(a) + $5M via 504 = $10M combined for the same borrower |
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Small manufacturers (NAICS 31–33) get a new 90% Made in America Loan Guarantee and fee waivers in FY26 |
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90% Grocery Guarantee launched for small food-supply-chain businesses |
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Reminder: Since March 1, 2026, SBA loans require 100% US-citizen ownership — green-card holders and mixed-ownership LLCs are excluded |
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The Bottom Line
If you're planning to buy real estate, equipment, or another business this year, talk to a 7(a) lender before July 4 to structure the deal in two tranches. And if your LLC has a non-citizen partner, restructure ownership now — or pivot to non-SBA lenders (CDFIs, community banks) before your refinance hits a wall.
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Breaking · International
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APEC trade envoys meet in China this weekend as 50% metal tariffs squeeze your project costs. On May 23, APEC trade representatives convened in Suzhou to discuss supply-chain resilience and trade imbalances. The APEC Business Advisory Council chair publicly urged a pause on new restrictions — a long shot, but a signal that even US allies want the tariff escalation to cool down. Meanwhile, Section 232 tariffs are biting hard: steel, aluminum, and copper sit at 50%; softwood lumber at 10%. The Brookings Institution estimates these tariffs add $30 billion to residential construction costs — roughly $17,500 per new home.
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50%
Tariff on steel, aluminum, copper
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+6.0%
Construction material costs vs. 2024 baseline
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Jul 2026
Lumber tariff review deadline
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The Bottom Line
Lock in your material pricing before the July 2026 lumber tariff review. Ask your supplier for a 90-day price hold in writing, and add an indexed escalation clause to any new customer contract: 'Price adjusts for raw-material cost increases over 5% between signing and delivery.' This single clause protects your margin if tariffs jump again.
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This week's picks
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Four tools to run a tighter shop when you can't replace the labor. The fewer hands you have, the more your software has to earn its keep. These four — across accounting, automation, field service, and payroll — cover the workflow gaps that eat your week.
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Wave
Free for invoicing & accounting · paid add-ons from $16/mo
Full-featured invoicing, recurring billing, and double-entry accounting at zero cost for the core product. Best for solo operators and shops under 10 employees who don't need a CPA-grade ledger yet.
waveapps.com
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Zapier
Free up to 100 tasks/mo · Starter $19.99/mo
The 2026 AI layer lets you describe automations in plain English: 'When a new lead comes in from my website, summarize their info and Slack me.' Replaces a virtual assistant for repetitive tasks.
zapier.com
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Kickserv
Free for 2 users · Lite $59/mo
Built for small field-service teams — HVAC, cleaning, landscaping, plumbing. Schedule jobs, dispatch techs, invoice from a phone, take payments. Skip Housecall Pro if you want something simpler and faster to set up.
kickserv.com
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Patriot Payroll
Basic $17/mo + $4/employee · Full-service $37/mo + $4/employee
The most affordable serious payroll on the US market right now. Files federal, state, and local taxes. Good for shops with 2–15 employees that don't need Gusto's premium HR layer.
patriotsoftware.com
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Quick reads this week
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Don't take our word for it — verify it yourself
Paste any of these prompts into ChatGPT, Claude, or Gemini with web-search turned on to confirm what you read above.
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Summarize the research released in May 2026 by Washington Post and NPR's Planet Money about how ICE workplace enforcement is affecting hiring for both immigrant and US-born workers. Include the 11× street-arrest increase and the growth of 287(g) agreements from 135 to 1,400.
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What did the Small Business Administration announce on May 18, 2026 about combining 7(a) and 504 loans? When does the $10 million cumulative limit take effect, and what fees are waived for NAICS 31-33 manufacturers?
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Confirm: As of May 2026, what are the Section 232 tariff rates on steel, aluminum, copper, and softwood lumber? What did the Brookings Institution calculate for the dollar impact on US residential construction?
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Protect what you're building.
PTX Insurance helps immigrant business owners get the coverage their state, lender, and customers actually require — without overpaying.
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© 2026 PTX Growth · ptxinsurance.us
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