Small Business Group Calls for $500 Billion in Stimulus Funding for Main Street
Statement from John Arensmeyer, CEO at Small Business Majority, on the limited help included in stimulus package for small businesses
As small businesses continue to struggle in the wake of the COVID-19 pandemic, the U.S. Senate released economic stimulus bill is merely a first step of what is needed to get business owners back on their feet. We have heard from countless entrepreneurs across the country that what they need to survive is a massive direct cash infusion now. The Senate plan is a start, but ultimately falls short.
The hit taken by small businesses nationwide far surpasses the $300 billion in loans proposed in the Senate stimulus. While we are pleased to see that there is a provision included that would not require businesses to pay back loans if they retain their staff during the emergency, it fails to recognize that the most vulnerable businesses have already been forced to shed staff at an alarming rate. Even if they are able to rehire their teams, the profit loss is still unsustainable in the long run, and for many businesses, they will never be able to recuperate without funding—no strings attached. Additionally, the Senate plan does not include measures to halt evictions and foreclosures or provide debt relief—all of which are needed to make any stimulus work.
In order for Main Street to thrive again, Small Business Majority is calling on Congress to immediately expand any stimulus package to include $500 billion dedicated strictly to small business relief. This relief should be split evenly between recovery grants for businesses of 2 to 100 employees and expanded loan assistance. Given that the Senate plan allows for businesses with up to 500 employees to take advantage of the loans, lowering the employee threshold to 100 would better benefit the businesses in the most need right now. Absent an amended version that provides greater relief for the smallest businesses, lawmakers will be forced to come back to the table to provide critical relief in the coming days.
For a comprehensive breakdown of Small Business Majority’s stimulus plan and other issues it is advocating for, click here. Small Business Majority is also available to connect the press with small business owners who have been impacted by the COVID-19 pandemic.
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 58,000 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.