Stimulus Agreement to Provide a Temporary Lifeline for Small Businesses, But the Need for Long-Term Solutions Remains

“We’re relieved Congress finally came through with a stimulus deal today that will help provide some relief to Main Street, but this may be too little too late for the thousands of vulnerable small businesses that have been on the brink of collapse during months of congressional inaction. An estimated 400,000 small businesses have already closed their doors for good, and a staggering 1 in 3 small businesses, including 41% of Black and Latino-owned businesses, report they may be forced to close their doors permanently soon. 

While the bipartisan stimulus agreement is not the comprehensive package that small businesses have been demanding, this temporary fix can help stem further losses for the hardest-hit businesses during this critical time, particularly for those owned by people of color. We support important provisions in the agreement to re-launch the Paycheck Protection Program (PPP), provide simplified loan forgiveness for loans under $150,000, and fund grants through the Economic Injury Disaster Loan (EIDL) program, among other measures. However, policymakers must also recognize that small businesses need a more robust plan. This is why we will continue to call on Congress to pass comprehensive relief in 2021 that provides long-term recovery solutions, including more small business grants and access to critical financing and resources. 

It is unacceptable that it took congressional leaders months to negotiate additional relief to stabilize our economy and small businesses. This gridlock absolutely cannot continue in 2021. Today’s agreement is  an important step forward, and what small businesses need next is for their elected officials to put their differences aside and get to work on the long-term relief they will require to survive beyond just the next few months.”