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Business Journals: Lawmakers urge Congress to pass more Covid-19 small business relief

More than 60 lawmakers from both parties are asking Congressional leaders to quickly pass an additional round of Covid-19 relief for small businesses.

The lawmakers, which include Rep. Anthony Gonzalez, R-Ohio, Alexandria Ocasio-Cortez, D-N.Y, and Josh Gottheimer, D-N.J, along with the lead sponsors of the bipartisan small business grant bills GYMs Act, RRF Replenishment Act, and the Save Hotel Jobs Act, are asking Congress to fully fund all requests made to the Restaurant Revitalization Fund, as well as set up grant programs for the fitness, live events and travel industries.

The RRF officially closed earlier in July after it had eligible applicants request more than $72 billion in funds — far more than the $28.6 Congress had approved for the program. Small businesses that ultimately received RRF grants can be found here.

“These small businesses are critical to the cultural and economic vitality of our communities, and they need our help,” the lawmakers said in the letter. “Especially as we head into the winter months, tens of thousands of small businesses across the country are faced with the possibility of layoffs, reduced service or hours, or outright closure, barring additional federal relief.”

The lawmakers point out that Congress had previously worked to set up the popular Paycheck Protection Program as well as the Shuttered Venue Operators Grant program, along with the RRF, to help save small businesses.

"Together, these programs helped keep millions of Americans on payrolls, prevented countless small businesses from closing, and helped power an economic recovery much more robust than most would have predicted," the lawmakers wrote in the letter, adding that not all businesses were able to access those programs or get any relief funding. "Instead of lifting all boats, we’ve only lifted some, leaving scores of small business owners out in the cold through no fault of their own. Many of these small-business owners have taken on extraordinary debt while they wait for much-needed federal assistance. We must help them before it is too late."

The letter comes after the The Community Gyms Coalition and the Global Health & Fitness Association wrote its own letter on Dec. 2 to Senate Majority Leader Chuck Schumer, D-N.Y., Senate Minority Leader Mitch McConnell, R-Ky., House Majority Leader Rep. Nancy Pelosi, D-Calif., and House Minority Leader Kevin McCarthy, R-Calif., that Congress should pass a direct-aid program for gyms and fitness facilities “before the end of the year.”

The Live Events Coalition has also pressed for more aid, stating there are nearly 1.08 million live events businesses across the country, and 79% of them saw revenue losses of 60% or more through March 31, 2021, while 37% saw a revenue loss of 91% or more.

Those businesses run the full gamut, from promoters and organizers to lighting, equipment rental and even florists and designers. But Congress is suffering from a form of "Covid-19 fatigue" when it comes to small business relief, one lobbyist said.

The renewed push for small business grants comes after months of Congressional delays and wrangling over the Build Back Better Act, a package of social programs and tax credits that has been the subject of endless delays and negotiations and which Sen. Joe Manchin, D-W.Va, recently said he would not vote for, all but ensuring its defeat in the Senate.

Rep. Dean Phillips, D-Minn.'s office issued a press release in late September stating Phillips had secured a promise from Pelosi to create a small-business relief package in the House. The exchange was reported in The Hill as part of Pelosi’s efforts to secure votes for the reconciliation legislation.

Work had tentatively begun in September of such an aid package, and one source told The Business Journals recently that an informal working group had been formed between the House and Senate small business committees to craft such a package. But the source stressed that any such package likely would not be completed by the end of 2021.

But there are still grant and low-interest loan programs for small businesses, although not at the same scale and scope as those offered by the federal government. Here's a look at some of the options.

Lawmakers urge Congress to pass more Covid-19 small business relief
December 21, 2021 – Minneapolis/St. Paul Business Journal
By Andy Medici