Washington, D.C. – Today, in a letter to congressional leadership, the Economic Innovation Group (EIG) and a broad coalition of leading business advocacy groups issued support for the small business Recovery Sector Loan program proposed as part of the Health, Economic Assistance, Liability Protection and Schools (HEALS) Act. The coalition — ranging from event management companies and manufacturing industries, to rural and minority-owned businesses — further urged Congress to enact changes to the legislation to ensure wider access to the program for small businesses facing insolvency, closure, and decreased consumer demand during what has become a prolonged economic crisis due to the Covid-19 pandemic.
The organizations wrote, “Small businesses are in the midst of an unprecedented crisis—one that will not subside until the public health crisis is resolved through a widely-available vaccine and effective therapeutic treatments. The time has come for Congress to move beyond stop-gap relief by enacting a program that aligns with the scale and duration of the crisis.”
EIG President and CEO John Lettieri welcomed the proposal when it was introduced on July 27th: “The Recovery Sector Loan program is exactly the kind of lifeline small businesses need in the midst of this prolonged crisis. EIG applauds Chairman Rubio’s work in putting forward a proposal for small business relief that recognizes the need for longer-term certainty and access to capital, rather than continued stop-gap solutions. We look forward to working with leaders in Congress in the weeks ahead to build upon this much-needed legislation to ensure it has the necessary scope and resources to address the severe challenges facing America’s small business community.”
While PPP was intended for short-term relief in the early stage of the COVID-19 crisis, the Recovery Sector Loan proposal led by Senate Small Business Committee Chairman Marco Rubio (R-FL) and Senator Susan Collins (R-ME) reflects the need for longer-term relief. Under the program, eligible small businesses would have access to 20-year, one-percent interest loans that can be used to meet a variety of working capital needs, including refinancing existing debt and making capital purchases that serve to lower the borrower’s fixed operating costs. In addition, repayment of Recovery Loans would be deferred for two years.
The 29 signatories, which represent many of the industries most deeply impacted by COVID-19, include the 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.
A copy of the letter is available here.
About the Economic Innovation Group (EIG)
The Economic Innovation Group (EIG) is an ideas laboratory and advocacy organization whose mission is to advance solutions that empower entrepreneurs and investors to forge a more dynamic American economy. Headquartered in Washington, D.C. and led by an experienced, bipartisan team, EIG convenes leading experts from the public and private sectors, develops original policy research, and works to advance creative legislative proposals that will bring new jobs, investment, and economic growth to communities across the nation. For more information, visit eig.org.