More PPP Funding is Desperately Needed, but Small Businesses Will be Left Behind Once Again Without Grant Assistance
Statement from John Arensmeyer, Founder & CEO of Small Business Majority, on today’s U.S. Senate vote to allocate additional funds to emergency loan programs
“We’re glad the Senate has finally agreed on a plan to allocate additional funds to the Payroll Protection Program (PPP) and Economic Injury Disaster Loans (EIDL), and we are hopeful this will benefit some business owners who have been left at the end of the line by dedicating a portion of funds to community-based lenders. But at the same time, even with additional funding, these loan programs are not structured in a way that will meet the needs of the smallest, most vulnerable small businesses.
Our recent polling found a vast 9 in 10 small businesses have been harmed by the spread of COVID-19, but we know only a small fraction of those have received the help they were promised. While providing more funds to these assistance programs is necessary, we’ve already seen that they do not provide the quick relief that would help small businesses now and in the future. Equally troubling, this legislation fails to address a critical carveout that allowed publicly-traded companies, large restaurant groups, and hedge funds to apply for and deplete the PPP fund. Meanwhile, true small business owners were left behind, and now they are fearful that help may never arrive.
Small business owners from across the country are frustrated that their needs are not being met. The stimulus loan programs will not benefit business owners whose operational costs exceed their payroll expenses, or businesses that are legally unable to put their employees back to work. Worse, for the select few that have been able to secure any funding, some are not receiving their full requested amount.
PPP has never been a long-term solution, and these issues and the speed with which the fund was exhausted only underscores the need for unrestricted grants to help small businesses survive and recover from this crisis. When PPP is depleted once again in a matter of days, we hope Congress will finally be willing to come to the table and get serious about a direct grant program for small businesses.”
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About Small Business Majority
Small Business Majority was founded and is run by small business owners to ensure America’s entrepreneurs are a key part of a thriving and inclusive economy. We actively engage our network of more than 60,000 small business owners in support of public policy solutions and deliver information and resources to entrepreneurs that promote small business growth. Our extensive scientific polling, focus groups and economic research help us educate and inform policymakers, the media and other stakeholders about key issues impacting small businesses and freelancers. Learn more about us on our website and follow us on Twitter, Facebook and Instagram.