Small business must survive, thrive
Published 6:00 pm Thursday, April 23, 2020
Small business is the backbone of our economy and the quick revival of that segment of the economy is critical for both the health and livelihood of the nation.
Small businesses are responsible for 50 percent of the nation’s non-farm gross domestic product (GDP) and account for 99.7 percent of all employers in the U.S. In addition, small businesses employ 56 million Americans.
The federal government has rightfully targeted small businesses in our economic recovery from the COVID-19 shutdown.
Such programs of the Payroll Protection Program are playing a key role in helping small businesses survive the shutdown and getting the nation on the road to economic recovery.
The Senate has passed the Paycheck Protection Program and Health Care Enhancement Act (PPP & HCE Act), a $483 billion appropriation, and the House of Representatives is expected to pass it by a voice vote today.
The appropriation will replenish the already depleted PPP, and it also increases funding for hospitals and funds more coronavirus testing.
“The Senate is continuing to stand by the American people,” said Senator Majority Leader Mitch McConnell, when the bill passed the senate.
The Payroll Protection Plan proved to be particularly important for small businesses and quickly ran out of money, thus setting the stage for the two-week congressional battle over the additional appropriation.
PPP Loans are designed to be an outright grant if the business maintained its current payroll and for any amount not forgiven, to be paid back at a nominal one percent interest rate.
The previous appropriation of $349 billion went quickly and before many businesses had a chance to apply for the loan/grant program.
The new appropriation targets another $310 billion for forgivable loans to small businesses. In the first PPP outlay, most small businesses received their money within one to five days of the loan’s approval.
The program must succeed and succeed quickly because people have families to feed, bills to pay, and futures to safeguard. To have a complete victory over the coronavirus pandemic, we must have a strong and vibrant small business segment of the economy.
