“I would certainly love to have a busy summer — that’s the best time of year for us,” said Zachary Davis, co-owner of Santa Cruz’s Glass Jar restaurant group, which includes the Picnic Basket cafe across from the city’s Main Beach and boardwalk. “But I’m not going to advocate for short-term gains for my business if it causes long-term harm to my community.”
Small Business News
The damage is widespread: 92 percent of small businesses in California say they’ve been negatively affected by coronavirus, according to a new study released this week by the Small Business Majority, an advocacy group based in the Bay Area. One-third have permanently laid-off workers, and about half have done furloughs.
John Arensmeyer, president of the Small Business Majority, an advocacy group with a network of more than 60,000 small businesses, praised Congress for approving “desperately needed” additional funds for PPP and other programs, but expressed concern the money would not go to those who need it most. He noted that publicly traded and other large companies may still be able to receive loans, while small businesses with small payrolls but large operating costs will be left behind.
Small Businesses Continue Struggling. Congress voted to add additional funds to the Paycheck Protection Program (PPP) and the Economic Damage Disaster Loan. But the bill failed to support lenders that provide capital to Latino small businesses and other “underbanked” communities. This is not good news for California’s small businesses, many of who are closing or about to close during the Covid-19 crisis and received the fewest PPP loans in the entire country. How are they regrouping?
Aunque los programas PPP y EIDL se han quedado sin fondos una vez, la organización Small Business Majority (SBM en inglés), destaca la importancia de tener en cuenta que el 84 por ciento de los encuestados apoyan ampliar la asistencia financiera para cubrir el alquiler, la hipoteca y los pagos de servicios públicos al no vincular la ayuda para mantener la nómina como lo requiere PPP.
The new PPP funding “is a band-aid on a flawed program,” says Small Business Majority’s John Arensmeyer. Even with the $30 billion set-aside, he said, it will do little to “satisfy the massive need of the smallest and underserved businesses – specifically businesses in communities of color and women-owned and rural businesses.”
“At the end of the day, we’re still concerned about small businesses getting left behind. We’re concerned about larger businesses being able to tap the funds out again,” says Awesta Sarkash, government affairs manager at Small Business Majority, an advocacy group dedicated to fighting on behalf of small businesses.
Even though there is money set aside for smaller banks and financial institutions to lend, that won’t fix the problem that companies with existing banking relationships “are still going to get at the front of the line,” said John Arensmeyer, chief executive officer of the Small Business Majority, a small business advocacy group.
Register to participate in this Zoom webinar at bit.ly/2VM5K39. Space is limited. This webinar will also be streamed live at www.cupertino.org/youtube.
Hosted by the City of Cupertino in partnership with the NorCal Small Business Development Center, NorCal Small Business Majority, and Cupertino Chamber of Commerce.
IAAPA jointly submitted and signed the letter with:American Hotel & Lodging Association, Asian American Hotel Owners Association, Disability:IN, Economic Innovation Group, Exhibition Services & Contractors Association, Experiential Designers + Producers Association, International Association of Exhibitions and Events, International Franchise Association, Main Street Alliance, Main Street America, National Association for the Education of Young Children, National Association of Women’s Business Owners, National Restaurant Association, National Small Business Association, Small Busine