COVID-19 RESTART
There has never been a time more difficult and perilous for small businesses than the COVID-stricken world we live in. I know this because I am the owner of a small business in Palo Alto myself--during the pandemic, retailer clients I worked with plummeted from 35 to 1. Small businesses built America, but Congress has sidelined their needs during their most difficult time.
It is, sadly, too late to save those businesses that have already failed, but with the end of the pandemic comes a new promise: a promise to recover, rebuild, and restart; a promise for small businesses to come back--but better and smarter.
Help Me Support Local Small Businesses
A LOOK AT THE NUMBERS
Congress spent
$60 billion
bailing out Boeing,
increase in bankruptcies filed by entertainment companies; 50% or more for restaurant owners, real estate companies, and retailers
400%
Credit reports will show bankruptcy for
7 or 10 years
Just 90 grants out of more than 14,000 applications submitted were awarded by the SBA, 2 months into the Shuttered Venues Operator Grant program
47.1% of American workers are hired by small businesses
Some Federal programs administered by the SBA, such as the Restaurant Revitalization Fund (RRF), came too little too late. Other programs offered limited help and, in some cases, were even detrimental to small business owners. For instance, the previous two rounds of Paycheck Protection Program (PPP)--the Federal loan to small businesses which they had to spend on two months of payroll--took place when many businesses remained closed because of public health restrictions. This meant that many business owners had to continue paying for utilities, rent, and employees who could not actually show up to work for two months. For them, the PPP only became financial burdens.
MY PROPOSAL: RECOVER, REBUILD, RESTART
RECOVER
-
Tax credit relief for small business owners in the next five to ten years to come back in scale, provided that the owner proves that the losses are caused by COVID-19 hardship and no fault of their own.
-
Incentivize the workforce by redirecting our resources. Despite the economic reopening, small businesses continue to experience labor shortage. In June 2021, 46% of small business owners reported job openings they could not fill in the current period, more than double the 48-year historical average of 22%. While the employment benefits and stimulus cushioned the workforce against the pandemic, it is now time to cut back the benefits and instead redirect our resources to small businesses to fix the hiring problem.
-
Loosen the Accredited Investor requirement for SMEs to give them greater access to capital investment.
REBUILD
-
Rent relief to small businesses struggling to make ends meet after the Federal eviction moratoria terminated at the end of July.
-
SBA loan forgiveness for businesses on the brink of collapse (70% or more in revenue losses), provided that the owner proves that the losses are caused by COVID-19 hardship and no fault of their own.
RESTART
-
Credit reform to allow small business owners bankrupt during the pandemic to appeal for shorter waiting periods in acquiring FHA and USDA loans (contingent on application proving that the losses are caused by no fault of their own) and limit how long adverse credit information incurred by COVID-19 hardship stays on consumer reports
-
Support Entrepreneurship--See more of my entrepreneurship proposal here.
Endorsements
Sassan Golafshan
Owner of Form Fitness
Long-time Palo Alto resident
"Small businesses represent the heart and soul of America, and it is sad to see how little Congress has done to help them. Greg has a track record of championing small businesses in Palo Alto. We need him in Congress now to continue his fight!"
Brad Bao
Co-Founder and Chairman at Lime
"Greg has always been the voice of the small business and entrepreneur community. In difficult times like this, we need Greg’s leadership in Congress more than ever!"
ENDORSE THE CAMPAIGN!
Titles listed for identification purposes only