PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Here’s an Idea for Congress: Make “Small Business Week” a Week of Action

By at 22 September, 2020, 1:03 pm

NEWS

For Immediate Release

Washington, D.C. – It’s National Small Business Week, and the nation’s leading advocate for entrepreneurs and small businesses implored Congress to act on measures to boost the viability of our nation’s Main Street businesses in order to preserve and protect local economies throughout the United States in the aftermath of COVID-19 shutdowns and restrictions. Small Business & Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan said that the lack of action by Congress is unacceptable given the many initiatives and reforms that have bipartisan support.

“Small Business Week is the ideal time for Congress to advance a standalone small business package. The vibrancy of many local communities is hanging by a thread, and hundreds of thousands of jobs are at stake. Already, small business casualties are mounting in urban and rural areas alike. Many small businesses could have been saved if Congress provided a lifeline in August. It is unconceivable that Congress has not acted on COVID-19 related legislation for small businesses, especially when there is widespread consensus on key measures in both chambers,” said Kerrigan.

Kerrigan noted that SBE Council joined a coalition letter led by the Small Business Roundtable (which she chairs) that highlights the areas of consensus for a standalone small business package. She also pointed to innovative ideas to get capital into the hands of local small businesses, specifically a “Main Street Recovery Co-Investment Fund” modeled after a successful program in the UK.

“Congress can quickly pivot and utilize the regulatory infrastructure already in place to leverage local capital in support of small businesses. Investment crowdfunding is a proven and fraud-free method of raising capital, and Congress or the Federal Reserve can redeploy unused CARES Act dollars – or allocate additional funds – to supercharge local capital investment,” added Kerrigan.

Last week, SBE Council and Crowdfund Capital Advisors published a report showing the growing power of crowdfunding and how it can be utilized to help small businesses recover, re-invent and survive the COVID-19 crisis. As detailed in the report, more than 90% (393) congressional districts have had an investment crowdfunding offering. The average amount raised per offering is $342,000 and 700,000 retail investors have participated in diverse offerings across the United States. More than $500,000,000 has been committed to these offerings, which could easily increase with a federal co-investment fund.

“Small business owners and their employees are frustrated, disappointed and angry by the political partisanship during this critical time. Yes, the 2020 election is upon us, but now is not the time for gamesmanship. Democrats and Republicans need to come together and put the good of the country ahead of political ambitions. Main Street America needs help and not one more day should go by during Small Business Week without Congress acting to advance a small business relief and recovery package,” said Kerrigan.

Related Content:

A Tale of Two Streets in the Covid-19 Economy, Morning Consult Op-ed by Karen Kerrigan and ACCF nonresident Senior Fellow Mike Roman, September 21, 2020.

CONTACT: Karen Kerrigan, kkerrigan@sbecouncil.org

SBE Council is nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For 25 years, SBE Council has worked on and advanced a range of private sector and public policy initiatives to strengthen the ecosystem for strong startup activity and small business growth. Visit www.sbecouncil.orgfor additional information. Twitter: @SBECouncil

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