"The pandemic has left 30 to 40% of California’s small businesses on the verge of failure. To prevent a wave of closures, small businesses need access to affordable and responsible capital. However, due to large gaps in available capital and a system designed to naturally favor well-connected businesses, many of the smallest and most diverse businesses in our state are at risk of being left behind,” said Mark Herbert, Vice President, California at Small Business Majority. “If our economy is to recover, we must bridge this divide.
Small Business News
"PPP is about to expire, and Congress is not prepared to provide any additional help to small businesses on the brink of collapse," John Arensmeyer, founder and CEO of Small Business Majority, a small business advocacy group, told USA Today. "There are a number of small businesses in our network that cannot survive even one more month at the current rate of business without more help."
While it’s good that more loans went to smaller firms and that the SBA has corrected some errors, there’s still a need for more PPP funding and modifications to the program -- including simplifying the process for firms to have loans become grants, said John Arensmeyer, who heads the Small Business Majority, an advocacy group that chiefly represents firms with fewer than 100 employees.
“Without these changes PPP will be unnecessarily hamstrung,” Arensmeyer said.
Congress recently let the Paycheck Protection Program (PPP) expire without any clear indication as to when we’ll see additional support. This is incredibly disappointing for the numerous small businesses that are holding on by a thread.
My culinary entertainment small business relies on company events, tourists and inviting people into my home to function. Virtual cooking classes haven’t been the same, and I worry that if the quality isn’t there, my business’ reputation will suffer. I, like so many others, need to see increased support from Congress now if my business is going to survive.
As Congress debates new relief programs, Small Business Majority highlighted the story of John Hopson, a veteran small business owner whose Paycheck Protection Program (PPP) application was denied. John’s story, common among many Black and Latinx business owners, highlights the need for reform in the next round of relief.
The Small Business Majority, a national advocacy organization, and other business groups have joined the push to include this new lending program in the next congressional recovery package. The House and Senate versions of the bill are picking up more co-sponsors of both parties every day – 52 in the Senate and nearly 100 in the House.
When Congress designed the Paycheck Protection Program (PPP), they assumed that a one size fits all program would work for the range of different business models that make up the small business community. They could not have been more wrong. Now that applications have closed -- with more than $100 billion left in the fund -- it's time to reevaluate, rework and relaunch the program to reach more business owners.
As a small business owner, I know almost every customer that enters my shop on a first name basis. That’s the identity small businesses bring to our communities. With the ongoing pandemic, I worry that not only is my business in jeopardy, but so is this identity of our community. This is why I’m discouraged that Congress has let the Paycheck Protection Program (PPP) expire.
The Small Business Majority, an advocacy group in Washington, said Congress and President Donald Trump should have extended the PPP deadline again.
“While PPP is far from perfect, it is a needed program for millions of small businesses,” said the group’s founder John Arensmeyer. Congress should have “loosened requirements for small businesses to take a second, forgivable installment of PPP. … Otherwise, we are talking about entire communities at risk of losing their small business footprint,” he said.