'This business needs to pause right now': Woman blames Trump for her $230K business debt. Ramsey Show hosts tell her to get a new job

Co-hosts Ken Coleman and George Kamel agreed that she is in a storm of debt.

“You’ve got to batten down the hatches,” Coleman said (1).

Ashley’s consulting firm connects corporations, colleges and school districts with charities around the world to repurpose furniture and fixed assets. Last year she grossed $2.5 million.

But she said Trump’s tariffs and his defunding of Diversity, Equity and Inclusion (DEI) initiatives — along with defunding universities and public schools — have wreaked havoc on her woman-led business.

Ashley told Coleman and Kamel that as a result of these changes last year, she had to restructure and lay off all her employees. She’s the only one left.

Then, last summer, her husband, who is also her business partner, fell ill and was hospitalized, unable to work.

She said she’s lined up some contracts for the spring, but isn’t sure how to survive until then.

Drowning in business debt

Ashley outlined the sources of her $230,000 debt — including $90,000 in leases for two business vans, $80,000 in credit card debt and $60,000 she owes a vendor. She also has ongoing commitments on her office lease and insurance.

Coleman asked why there was such a large unpaid debt to a vendor hanging over her head.

“Did you get paid and then you kept it and didn't pay the vendor?”

Ashley explained that when she laid off her employees, she had to pay out on medical expenses, insurance and vacation time. There was no money left to pay the vendor.

She added that she didn’t want to get a loan.

“We're never going to suggest you get a loan,” Kamel said. “What I’m saying is maybe this business needs to pause right now.”

He suggested Ashley and her husband pivot and both get full-time jobs. Ashley said that her husband was still in rehabilitation.

“Then it’s just you,” he said. “Use your skills to go do something else right now to float you until those contracts come in. Then we can right this ship.”

Coleman recommended she tell the truth to the vendor she owes $60,000 to — and set up a repayment plan. He agreed with Kamel that she needs to get a full-time job.

Small business, big challenges

Ashley isn’t the only small business owner struggling as a result of tariffs and economic uncertainty.

Doug Scheffel, who owns a sheet metal fabrication company in Massachusetts, told CBS WUSA-9 that he had to lay off 25% of his employees last April when Trump launched tariffs that impacted demand for his products (2).

“It just has become almost impossible to plan and be thoughtful about our workforce, be thoughtful about how we pay those people, how we employ them,” he said.

Economist Aaron Terrazas said small businesses are also facing a tougher time accessing financing.

“Credit conditions — bank lending conditions — for small businesses have tightened now for 13 consecutive quarters. I think that’s probably going to continue,” Terrazas said.

Things are tough for small business owners at the best of times. According to U.S. Bureau of Labor Statistics, 20.4% of businesses fail in their first year after opening (3).

First there’s startup costs, which range from hundreds of dollars to tens of thousands depending on what type of business you have. That includes incorporation fees, anywhere from $480 to $1,180.

Then there are ongoing costs, including:

• general liability insurance (about $500/year)
• personal income tax (10 to 37%, depending on income)
• business taxes (21% corporation tax, plus 7.65% for Social Security and Medicare for employees)
• real estate leases (about $21.85 per square foot)
• and the cost of your inventory

According to the Fed Small Business 2024 Report on Startup Firms, 77% of startups without employees used personal funds to address challenges (4).