As the Restaurant Revitalization Fund and Paycheck Protection Program Come to an End, Congress Must Make More Small Business Grants Available

Washington, D.C.—With the Restaurant Revitalization Fund (RRF) now closed and the Paycheck Protection Program (PPP) nearly out of funds, small business groups and business owners around the country are calling for the creation of more direct grants that would offer additional assistance to hard-hit small businesses. 

While PPP provided a crucial lifeline for many businesses, the program’s rollout, technical errors, and restrictive loan parameters caused many small businesses—especially newer businesses and under-resourced communities—to fall through the cracks. These deficiencies are a contributing factor that explains why many small businesses are being left out of our nascent economic recovery. In fact, a recent survey of Small Business Majority’s network revealed that even as economic conditions started to improve for some small businesses, small businesses owned by entrepreneurs of color are disproportionately lagging behind white-owned businesses. Fifteen percent of Latino and 13% of Black entrepreneurs said their business was temporarily closed, compared to 6% of white business owners. The survey also found that 35% of Black entrepreneurs reported that business conditions were worsening, and 37% said that they may not survive the next three months. This comes as 36% of small businesses overall said conditions are somewhat improving for their business.  

Small business owners need flexibility when it comes to funding,” said Kricket Caffery, owner of PegStilts.com in Oregon. “My business is 13 years old, and I run it entirely on my own. I have tried numerous ways to secure funding for my business over the last year given the significant decrease in sales, but I can't commit to PPP or EIDL loans because I can't repay them. I even tried applying for grants—33 of them to be exact—but only received two for a total of $5,000. I’m a veteran, a woman and LGBTQ, and I still haven’t been able to find targeted relief. If grants aren’t made available for people like me, then I don’t know who can get them.”

Small businesses, particularly those owned by women and entrepreneurs of color, are still struggling one year into the pandemic. This is why more than 1,500 small business owners and business organizations are calling on Congress to consider additional grant relief for vulnerable businesses that have been left behind by PPP and other federal aid programs.

“Grants are the number one priority for small businesses to get back on their feet,” said John Arensmeyer, founder & CEO of Small Business Majority. “In fact, 40% of small business owners recently reported they will need no-cost grants or zero interest loans this year to keep their business open and 91% of small businesses say they want Congress to pass legislation authorizing directing grants.”

“Main street businesses have been crying for flexible grants from the beginning. Great strides have been made, but with many businesses not able to access PPP now that banks have shut down applications, and industry specific grants ending without meeting the full need, it’s time to heed that call for all small businesses,” said Stephen Michael, Executive Director of the Main Street Alliance.