Congress Courting Small Business Catastrophe by Failing to Pass Relief Package
Statement by Frank Knapp Jr., Small Business for America’s Future co-chair and Founder and CEO of the South Carolina Small Business Chamber of Commerce
Washington, D.C., Aug. 7, 2020—In failing to reach a deal on a new Covid relief package, Congress is courting disaster and a new wave of small business closures that will deepen the country’s economic pain.
The Paycheck Protection Program ends on Saturday and while the program was hastily conceived and poorly administered, it was helpful for some small business owners who have been hanging on by any means necessary. Allowing it to disappear without a better replacement leaves small business owners out in the cold. Compounding the pain, Congress failed to extend enhanced unemployment benefits that have propped up consumer spending that small business owners depend on to survive. Without more small business and unemployment relief, more small businesses will close for good, jobs will be lost, livelihoods destroyed and economic recovery weakened.
It is also outrageous that one of the sticking points in the negotiations is the president and Senate Republicans insisting on helping insurance companies and big corporations avoid paying claims for legitimate employee health grievances. There is little benefit to small businesses for the Covid-related liability protection they are seeking and certainly no benefit to the millions of unemployed.
According to data from The Century Foundation, every week Congress does not pass a coronavirus relief package, over $10 billion in federal unemployment benefits will not be injected into the economy as it has been. But the real impact is even greater given that every dollar contributes $1.61 to an economy.
Small businesses across the country have been closing their doors for months. Congress could help but instead is putting the wishes of big corporations over the needs of Main Street.
About Small Business for America’s Future
Small Business for America’s Future (formerly Businesses for Responsible Tax Reform) is a coalition of small business owners and leaders nationwide working to provide small businesses a voice at every level of government. We’re committed to ensuring policymakers prioritize Main Street by advancing a just and equitable economic framework that works for small business owners, their employees and their communities. Visit www.smallbusinessforamericasfuture.org. Follow us on Twitter and Facebook. #SmallBizAF.