PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Small Business Coalition Letter to Congressional Leaders Urging Action on PPP Re-up, Long-Term Recovery Loan Program

By at 7 December, 2020, 9:25 pm

Dear Speaker Pelosi and Leaders McConnell, Schumer, and McCarthy:

We write to urge Congress to take immediate action to provide emergency relief to American
small businesses. As economic and public health conditions continue to worsen, business owners
are reporting declining revenues and an increasing need for support in order to survive the
coming months. Small businesses urgently need Congress to enact stop-gap relief as a bridge to a
longer-term program that can help them transition from crisis to recovery.

According to the latest Census Bureau data from late November, 46.4 percent of all small
businesses believe it will be at least six months before their businesses return to normal levels of
operation. Nearly eight percent of businesses believe they will never fully recover. Furthermore,
in the last three weeks of November, over a third of businesses reported falling revenues for the
first time since mid-August, while the share of firms reporting increasing revenues sunk to its
lowest point since the Bureau began collecting this data at the end of April. As COVID-19 cases
surge and economic conditions weaken, it is imperative that Congress take action immediately.

The Paycheck Protection Program (PPP) provided critical assistance to small businesses early in
the pandemic and helped mitigate the ensuing economic disruption. Unfortunately, the program
was allowed to expire months ago, leaving needy borrowers unable to access additional relief. As
businesses prepare for what is likely to be a devastating winter, and in the absence of a longer term relief program, Congress should fund PPP at a level sufficient to provide vital resources to
every qualifying small business across the country, along with requirements to ensure that
eligibility for a second PPP loan is targeted to businesses suffering from lost revenues and
operational disruption. Despite its limitations, a second PPP draw would ensure vulnerable
businesses have the assistance they need in order to survive in the near term.

While renewing PPP should be the immediate priority, it is important to underscore that the
program was originally intended to be a short-term solution, not an ongoing source of relief
throughout an extended crisis. Looking beyond the lame duck session, small businesses will also
need additional loans or other direct assistance to help them transition from crisis to recovery in
the year ahead. We believe that such a recovery program must be designed with four core
features: 1) zero interest rates, 2) long-term loan maturity, 3) overall administrative simplicity,
and 4) the flexibility to use the loans to cover a wide range of expenses and to improve the
underlying resiliency of the business. Our organizations call on Congress to make enacting a
program with those elements a top priority when it returns next year.

Small businesses are in the middle of a prolonged and unprecedented crisis – one that will not
truly begin to subside until the public health crisis is resolved through a widely-available
vaccine. Congress must act quickly to enact relief to prevent further devastation to the small
business sector.

Thank you for considering this request.

Sincerely,

American Hotel & Lodging Association
Angel Capital Association
Asian American Hotel Owners Association
Center for American Entrepreneurship
Economic Innovation Group
Engine
Experiential Designers + Producers Association
Exhibitor Appointed Contractor Association
Go LIVE Together
Gusto
International Association of Exhibitions and Events
International Franchise Association
Main Street America
National Association for the Education of Young Children
National Tooling and Machining Association
NFIB
North American Die Casting Association
Precision Machined Products Association
Precision Metalforming Association
Society of Independent Show Organizers
Small Business & Entrepreneurship Council
Small Business for America’s Future
Small Business Majority
The Payroll Group
U.S. Chamber of Commerce
U.S. Travel Association

cc: Senator Marco Rubio (R-FL)
Senator Ben Cardin (D-MD)
Representative Nydia Velazquez (D-NY-0-07)
Representative Steve Chabot (R-OH-01)

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