300+ Small Business Leaders Call the American Rescue Plan ‘Big, Bold Relief We Need to Save Main Street’
Hundreds of small business owners and local economic leaders, including 30 Chamber of Commerce Representatives, released a letter this week expressing their support for the American Rescue Plan, calling it "the big, bold relief we need to save Main Street."
Their support is indicative of the challenge faced my small business owners across the country and the urgent need for the support contained in the American Rescue Plan. A survey from the Federal Reserve found that 9 million small business owners fear their businesses won't survive the pandemic without more government relief. Trump's own Chairman of the Council of Economic Advisors told CNN he "absolutely" supports the framework of President Biden's stimulus plan and Moody's Analytics found the plan will create 10 million additional American jobs between 2021 and 2022.
***
Full text of their letter is available here and below:
"Small businesses are the backbone of the nation's economy, and an integral part of America's communities. We account for almost half of the country's economic activity, two-thirds of new jobs, and employ more than half of all Americans.
"Unfortunately, the economic crisis created by the pandemic has ravaged the small business community, leaving at least 400,000 businesses permanently closed and millions more struggling to hold on. Nationally, small business revenue is down 30.5%, and paid employment at firms with less than 500 employees declined 18% in the first 4 months of 2020. Nearly 1 in 5 small businesses that were open in January of 2020 have stopped transactions entirely, and many of them will likely be forced to close permanently. Meanwhile, large employers recovered faster than smaller employers between July and September of 2020.
"The small business crisis is particularly acute amongst minority-owned and women-owned businesses. In fact, 32% of Latinx, 29% of Black and 25% of Asian-American and Pacific Islander business owners report they must temporarily shut their doors in the next three months. Women are more likely to own businesses in industries hit hardest by Covid, and past relief efforts haven't been enough to keep them going.
"That's why we need President Joe Biden's American Rescue Plan. The legislation provides $15 billion in grants to more than 1 million of the hardest-hit small businesses to get them back on their feet. It also leverages $35 billion for small businesses financing programs, which can generate as much as $175 billion in venture capital and low-interest loans to provide critical access to capital for businesses and entrepreneurs in need.
"Main Streets across the country need this lifeline — and they need it now. It's the only way to prevent more businesses from closing and to keep millions of Americans on the job.
"The American Rescue Plan meets the urgency of the moment and takes the steps necessary to save small businesses struggling during these difficult times."