Small businesses are essential in providing employment for workers who might otherwise be locked out of the mainstream economy. Small firms also drive large firms to compete for workers, thus driving up wages.
Reparations to heirs of slaves make sense so long as the actually guilty parties are the ones paying. Short of that, the policy being discussed has nothing to do with reparations. It's just a wealth redistribution scheme.
When the Americans with Disabilities Act was passed, employers hired fewer disabled workers, because they feared lawsuits. We may now be seeing a similar trend in the face of more sexual harassment claims.
An immigration system based on sponsorship, bonding, and a reduction in the use of public resources would allow the private sector to play a bigger role in which immigrants come here, and which ones stay.