Washington, D.C. — U.S. Senators Susan Collins (R-ME) and Marco Rubio (R-FL) introduced the Continuing Small Business Recovery and Paycheck Protection Program Act, a federal relief package that builds on the success of the bipartisan Paycheck Protection Program (PPP) and other small business relief programs in the CARES Act. Last week, the Senators received overwhelming support from the small business community for their legislation.
“The proposed 7(a) Recovery Sector Loan Program would fill a crucial gap in current support for small businesses, and serve as a necessary complement to existing government-backed options, such as the short-term assistance offered by PPP or the Economic Injury Disaster Loan (EIDL) program,” wrote the Economic Innovation Group (EIG), and 28 small business industry groups. “In a resource-constrained legislative environment, we believe long-term, one-percent loans offer a much more cost-effective way of delivering the appropriate scale of relief to the small business community than other alternatives now being considered.”
“[The new SBIC Facility] will help propel new business formation in low-income census tracts and within our domestic manufacturing supply-chain, promoting sustainable, high-wage job growth across the country, including in many of our hardest-hit Black and Brown communities,” wrote a bipartisan group of 15 economic development policy experts led by the Niskanen Center.
“It is clear that Senator Rubio and Senator Collins listened to diverse small business voices and many business owners in crafting this PPP re-tool and recovery package,” wrote Karen Kerrigan, President and CEO, SBE Council. “The separate low-interest, long-term ‘recovery’ loan program established in the package could very well be the true Main Street lending program that the Federal Reserve seems to have missed. This program will help a diverse range of small businesses in low-income areas by offering favorable terms, and allow for a broad usage of loan funds, including working capital and refinancing of existing debt.”
“NSBA is pleased that your bill allows for more flexibility by expanding the allowable purpose of PPP loans and forgiveness to include certain operations costs; property damage costs from 2020 public demonstrations that insurance does not cover; payments to suppliers for goods already under contract that the business needs; and costs for complying with COVID-19 health guidelines such as buying PPE,” wrote Todd McCracken, President & CEO, National Small Business Association (NSBA). “NSBA applauds the concept of the expanded 7(a) loan guaranty program that would authorize $100 billion in long-term, low-cost loans to recovery sector businesses, which include seasonal businesses and businesses located in low-income census tracts.”
“This amendment, which modifies S. 4321, the Continuing Small Business Recovery and Paycheck Protection Program Act, would provide necessary and targeted financial assistance to small businesses for the purposes of keeping workers employed and keeping their doors open during the ongoing public health crisis,” wrote Kevin Kuhlman, Vice President, Federal Government Relations, National Federation of Independent Business (NFIB), “NFIB supports the revised revenue loss threshold (35% revenue loss) for eligibility purposes contained in the amendment relative to S. 4321. This adjustment will provide vital additional financial assistance to substantially more struggling small businesses.”
“This second round of funding and access to these long-term loans is akin to a targeted investment from the federal government into the very businesses where it can make the most difference,” wrote the International Franchise Association and 193 small business industry groups.
“We commend you for establishing a program that provides much needed capital, including equity capital, to diverse businesses that fall above the Community Development Financial Institution (CDFI) threshold and who can greatly benefit from working with a Small Business Investment Company (SBIC) fund,” wrote Carmen Castillo, Chairwoman, Board of Directors, U.S. Hispanic Chamber of Commerce, and Ramiro A. Cavazos, President and CEO U.S. Hispanic Chamber of Commerce.
“Most importantly, Paycheck Protection Program (PPP) Second Draw loans would be a needed lifeline to true small businesses in the music industry, and a reduction of the employee cap to 300 employees is sound public policy,” wrote Dr. Richard James Burgess, President and CEO of the American Association of Independent Music and Daryl Friedman, Chief Advocacy Officer of the Recording Academy.
“We fully support the extension of PPP to non-profit organizations and hope to utilize these funds to bring back furloughed employees and protect the sustainability of our association so that we may continue to advocate for the premium cigar,” wrote Scott Pearce, Executive Director, and John Anderson, President, Premium Cigar Association.
“While the PPP has helped many of our members’ plastic surgery practices weather current financial challenges, we are grateful for additional refinements provided in this legislation that would help 501(c)(6) organizations, like our Society, that have been hard-hit by the economic damage of the pandemic,” wrote Michael Costelloe, Executive Vice President, American Society of Plastic Surgeons. “This legislation is sorely needed, and we believe it will help us remain financially viable and will directly improve the livelihoods of our staff.”
“In many instances, the thousands of local chambers and business association chapters across the country are the single source of information guiding these small businesses during this time of crisis,” wrote Small Business Roundtable, and 12 small business advocacy groups. “By including these organizations, Congress will ensure that small businesses receive the necessary resources, technical assistance, and direction during the economic recovery.”
"For ARA members still facing significant revenue losses, your legislation, The Continuing Small Business Recovery and Paycheck Protection Program Act (S. 4321), allowing small businesses to receive a second draw from PPP if they have 300 or fewer employees and can demonstrate revenue losses of at least 50 percent, will continue to ensure the survival of businesses that are recovering slowly but who are beginning to see the light at the end of the tunnel," wrote Tony Conant, CEO, American Rental Association (ARA).
“Many of the provisions in your bill, S. 4321, the Continuing Small Business Recovery and Paycheck Protection Program Act, will be essential to ensuring our small business dental practices are able to continue to employ their staff and provide essential oral care services to their patients,” wrote Chad P. Gehani, D.D.S., President, American Dental Association and Kathleen T. O’Loughlin, D.M.D., M.P.H., Executive Director, American Dental Association.
“Several provisions included in recent Democratic and Republican recovery plans would help provide critical relief to restaurants and employees,” wrote Sean Kennedy, Executive Vice President of Public Affairs, National Restaurant Association. “These include: a second draw of forgivable Paycheck Protection Program (PPP) loans.”
“We are encouraged to see that the Senate has included two provisions in the HEALS Act related to non-profit associations eligibility for financial relief,” wrote Tricia Elliott, MD, President, Society of Teachers of Family Medicine and Stacy Brungardt, CAE, Executive Director and CEO, Society of Teachers of Family Medicine. “The first is a provision in the Continuing Small Business Recovery and Paycheck Protection Program Act, that would expand eligibility to receive a Paycheck Protection Program loan to certain 501 (c)(6) non-profit organizations.”
“Farm Bureau supports allowing expenditures incurred by a grower to provide worker protection be eligible for forgiveness as PPP expenses,” wrote Zippy Duvall, President, American Farm Bureau Federation.