Center for American Entrepreneurship Joins Coalition of Business and Policy Organizations in Letter Supporting the Recovery Sector Loan Program and Urging Broader Eligibility
August 5, 2020
WASHINGTON, D.C. – John R. Dearie, President of the Center for American Entrepreneurship, today issued the following statement regarding a letter to Congressional leadership signed by a coalition of 29 business and policy organizations regarding the small business Recovery Sector Loan program provisions of the Health, Economic Assistance, Liability Protection, and Schools (HEALS) Act.
“The Center for American Entrepreneurship (CAE) is pleased to join our colleagues at 29 other organizations in a letter sent yesterday to House Speaker Nancy Pelosi, House Minority Leader Kevin McCarthy, Senate Majority Leader Mitch McConnell, and Senate Minority Leader Charles Schumer in support of the small business Recovery Sector Loan program provisions of the HEALS Act, and urging that the program’s eligibility criteria be broadened to include more small businesses, given the severity and prolonged duration of the Covid-19 crisis. CAE thanks our colleagues at the Economic Innovation Group for their leadership in organizing this important letter.
“As the letter states:
‘We strongly affirm that the structure of the proposed lending instrument – i.e., long-term, very low-interest, waived credit tests, and deferred repayment – is the right approach for businesses who need to weather an extended crisis and the resulting decrease in consumer demand. 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.
‘However, as currently drafted, the Recovery Sector Loan Program’s narrowly-defined eligibility requirements would bypass the majority of small businesses desperately in need of a lifeline. To remedy this, we urge Congress to lower the revenue loss threshold below the current 50 percent requirement and shorten the time period during which the revenue loss must have occurred to eight weeks versus one quarter. We also recommend broadening the eligibility to any business who meets the size threshold and economic harm standard, regardless of location. However, we also recognize that low-income communities have been disproportionately affected by both the public health crisis and the resulting economic fallout. Therefore, we would support measures to provide additional targeting to small businesses in these communities in the form of set-asides or streamlined eligibility standards.’
“CAE thanks Speaker Pelosi and Leaders McConnell, Schumer, and McCarthy for their work to date to protect small businesses from the impact of the Covid-19 pandemic. We agree with our colleagues that Congress must now move beyond stop-gap relief and enact a program that more fully aligns with the scale and duration of the crisis. We look forward to working with Congress and the Administration to see the assistance small businesses need and deserve enacted into law.”
The 29 signatories of the letter include: American Hotel & Lodging Association, American Mold Builders Association, America’s Recovery Fund Coalition, Asian American Hotel Owners Association, Center for American Entrepreneurship, Economic Innovation Group, Engine, Exhibitor Appointed Contractor Association, Exhibition Services & Contractors Association, Experiential Design + Producers Association, Go LIVE Together, Gusto, Independent Payroll Providers Association, International Association of Amusement Parks and Attractions, International Association of Exhibitions and Events, International Council of Shopping Centers, International Franchise Association, National Tooling and Machining Association, NFIB, North American Die Casting Association, Page 30 Coalition, Precision Machined Products Association, Precision Metalforming Association, Small Business & Entrepreneurship Council, Small Business for America’s Future, Small Business Majority, Society of Independent Show Organizers, The Payroll Group, and U.S. Travel Association.
The full letter to Congressional leadership can be found here.
About the Center for American Entrepreneurship (CAE)
The Center for American Entrepreneurship (CAE) is a nonpartisan research, policy, and advocacy organization whose mission is to engage and educate policymakers in Washington, and at state and local levels across the nation, regarding the critical importance of entrepreneurs and startups to innovation, economic growth, job creation, and expanding opportunity – and to pursue a comprehensive policy agenda intended to significantly enhance policy circumstances for new business formation, survival, and growth.
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