Congressional Action Needed to Assist Small Business

The Stanford Institute for Economic Policy and Research found, in the midst of the COVID-19 crisis: “African-American businesses were hit especially hard experiencing a 41 percent drop. Latinx business owners fell by 32 percent, and Asian business owners dropped by 26 percent. Simulations indicate that industry compositions partly placed these groups at a higher risk of losses. Immigrant business owners experienced substantial losses of 36 percent. Female-owned businesses were also disproportionately hit by 25 percent. These findings of early-stage losses to small businesses have important policy implications and may portend longer-term ramifications for job losses and economic inequality. 

The revised House HEROES Act includes some $35 billion for a variety of small business programs as well as extending Paycheck Protection Program and providing $75 billion in addition to the amount unspent previous from PPP legislation. The House bill also includes a number of provisions for the SBA Microloan program that would help those borrowers identified by the Stanford report as especially impacted by the pandemic. The provisions include updates to make it easier for Microloan intermediaries to serve businesses and provide technical assistance, as many entrepreneurs are forced to rethink their business models due to coronavirus and the economic realities of the present. The bill also includes $1 billion in grants for CDFIs to response to the COVID crisis.  Of this amount not less than $25 million is directed to benefit Native communities

We know there are good ideas also coming from the Senate and White House as well, and we look forward to additional assistance to small businesses soon.