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.
While efforts to mandate "equality of outcome" are rightly derided, "equality of opportunity" is wrongly held up as essential. But even when we face unequal opportunities, the marketplace can still make us all better off.
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.