Transcripts For CSPAN2 House Small Business Committee Hearing On Coronavirus Economic Relief -... 20240713

[inaudible conversations] we are going to get started. Thank you. Good morning. The hearing will come to order. I thank everyone for joining us this morning and i want to especially thank my colleagues for joining us today for the House Committee on business hearing the response to covid19. We have had a hard stop act once again. We will move as quickly as we can but should we not be able to accommodate every member in person today, we will be accepting statements for the record until thursday, april 30. This important hearing i want to mention the chairwoman has been in our thoughts and prayers we wish you nothing but the best as you recover. Small businesses and entrepreneurs play a Critical Role within the american economy. Not only do they employ half of the nations workers but created two out of every three new jobs in the nation. You only need to take the poll from main street america. It is demonstrated Small Businesses and employees and the Response Congress created with a Paycheck Protection Programs with as many Small Businesses as possible during emergency. A low interest loan can be forgiven if used for payroll and Small Businesses have a tool available to assist them as they weather the storm experiencing extremely high demand and within a two week span all the money was exhausted i devote my colleagues to inject more dollars into the program as quickly as possible. Hosting a bipartisan poll with a Small Business administrator and those that have the local Small Businesses to the leader of the sba we will hear for those that are fighting for their Small Businesses. And hearing their thoughts and ideas how the cares act have been implemented and how congress can improve the moving forward the sba moved quickly in one week while there are several bumps in the road and more clearly then necessary rose to the challenge of assisting when no other options were available it is critically important we Work Together to assess the nation Small Business and startups they are counting on federal assistance so lets deliver. I yield back. Due to the high demand for participation, we will do our best to accommodate all the members who wish to provide testimony. I remind everyone we have two minutes to provide testimony within the framework to the best of your abilities so lets get started let me welcome congresswoman and the chairwoman of the subcommittee. Thank you madam chair and members of the committee we are honored to serve with you and not to misrepresent those in the First District in iowa it is all hard time for our Small Businesses and all across the country and my state and district it is something that we are all coming together to do more to make sure folks have what they need what we do know as this continues we will have to step up and listen to the folks in our district about what they need and one of the stories i want to quickly share today is from amman and monticello that has a Sporting Goods store. With High School Sports canceled hes sitting on over 100,000 of uniforms and equipment he cannot sell in his wondered if he can keep the store afloat. This is why we do this today. There is a big thing for me. We need to make sure, we did today and must do more to make sure communitybased Financial Institutions also have the dollars to put out there into the communities. Is not just about the big businesses that need millions of dollars but 10000 or 5000 or 20000 who have ten employees. And in particular with the Credit Unions we need to make sure that this touches folks specifically those in my district. And then to get them what they need. I yield back. To contact the infrastructure is recognized for two minutes. Is so great to see you. And also to the Ranking Member thank you for your work thank you for giving me the opportunity to testify in the Congressional District and the whole country is in this together to share with minnesotans what they have experienced during the nation wide shut down and how we can come out of this more resilient and selfreliant and stronger than ever. Major lifelines for Small Businesses of my district to be out in segments to be forthcoming struggling to understand what was made that they made Small Businesses believe they would receive loans in a timely fashion instead some received a fraction of what they were promised in psalm receive nothing at all i know individuals at sba and treasury are trying to implement each part of the cares act to give as much clarity as possible along the way but my constituents are rightfully frustrated. As a Small Business owner mysel myself, financial uncertainty is completely destabilizing any business fear by the time they get their loans or notice the application has been processed and approved they will have shut their doors. With this in mind we have priorities as a Small Business committee mom and pop shops are recipients of the loans businesses as few as two or three employees matter even those as a maximum of 500 we must prioritize getting ppp into the doors as quickly as possible im happy we are passing legislation today to replenish the ppe program and critical funds for Small Businessmen and women if we had to put aside partisanship that is now i stand ready and willing to assist as i said in the beginning our nation together will come out stronger and more resilient and selfreliant than ever. We must recognize Small Businesses are the engine of our economy. I yield back madam chair. The gentleman from new jersey chairman of subcommittee of Economic Growth is exercised on recognized for two minutes. Thank you for the opportunity to talk about Critical Issues those across the country that depend on Small Business for their livelihood during the crisis. Every day my staff and i talk with Small Business owners in my district to have had to close their doors or come close. Talking with neighbors trying to get unemployment hoping the money in the account is enough to pay rent or mortgage and hoping to keep food on the table. We will pass a bill to provide additional relief to set aside two thirds of trillion dollars aim to help Small Business owners keep people on payroll if you been a Small Business owner it has been a lifesaver we need to be clear the Paycheck Protection Program does not provide a longterm solution. From day number one we have seen the Paycheck Protection Program failed an inconsistent and unfair rules that make it difficult for lenders to get online and Small Business to get the support they need and Small Business want to do the right thing struggle to meet Program Requirements including the formula that exclusion of local nonprofits that are at the frontlines of the crisis. It doesnt work for the small sectors of the country. Money goes to big business while one mom and pop shops wait for congress to add more money these all need to be fixed now. Even if we fixed this and fully funded for months to come it will not solve the real problem we face we have to get the country moving forward and we have to stand up to be able to do so i urge all of us to Work Together to make sure that happens and we know who is sick and healthy to open the economy again. I yield back. Ranking member from pennsylvania. Thank you matter chairwoman. We often stress Small Business is truly the backbone of our economy. Perhaps this has never been more evident during the coronavirus pandemic which we recognize is truly a Public Health and economic crisis the h district of pennsylvania is home to many Small Businesses all of which have been significantly affected by the ongoing coronavirus outbreak as the government forced businesses to temporarily close their doors thanks to the resources of the 116th congress and the cares act , nearly 70000 Small Businesses in pennsylvania were approved for Paycheck Protection Program loans to keep them afloat while we fight the invisible enemy and fortunately far too many businesses in my district were shut out of the program when the funds ran dry last week. But that size limitation and guidance did not consider the unique Business Models of Agricultural Producers with many farmers keeping them from accessing relief. I am pleased to see the progress we have made to include farmer farmers, more must be done to ensure the future of our Agricultural Producers and food supply chain. Over the past weeks i have spoken with workers and Small Business owners and farmers who are truly counting on the Paycheck Protection Program. They are counting on congress to help them weather the storm even though Small Businesses they are counting on congress to help them to weather this storm. Even though our Small Businesses face trial, there are many that have stepped up. The masondixon distillery in adams county, Small Businesses have changed course to provide Hand Sanitizer and other items needed by frontline responders. They are not only the backbone of our economy but the heart of our community and Congress Must deliver on our promises for them. I think the Ranking Member for your leadership and continued support in these trying times. I yield back the balance of my time. The gentleman yields back, now we recognize the gentleman from colorado, the chairman of the subcommittee on innovation and workforce development. Thank you for convening this session of the business committee. Im honored to serve beside you and others in these unprecedented times. I heard from constituents within the Paycheck Protection Program have been lifelines but shortages of these programs have been well documented. Im pleased we are voting to ensure these programs have the funding they need. I heard our nations chambers of commerce and 501 c 6 organizations need assistance. My local chambers were forced to lay off staff, cut hours and are facing challenges in accomplishing their critical mission. We have to address that problem and provide funding to the 501 c 6 organizations. The Small Business credit support act would help Business Development Companies Invest more money under the Small Business Investment Company program, increase the amount they invest in these fdics to incentivize main street to help during these critical times. As millions of business apply for and receive assistance from the Small Business administration we need to address the Cyber Security need of the sba considering recent developments that might have had their personal information exploited from cybervulnerability. My bill would require them to report breaches within 180 days and create better infrastructure framework to address vulnerabilities. As we all know over site of important loan and Grant Programs is one of the most important rules of the committee. We are concerned about recent reports of larger publicly traded Companies Using programs intended for the nations Small Businesses. I look forward to working with all members of the committee to address any misuse of these programs, to ensure transparency and accountability are hallmarks a nations response to this crisis with congresss actions Going Forward. I look forward to working with you to protect our businesses and expand investment in our nations Small Business, i yield back. I now recognize the gentleman from North Carolina for two minutes. Thank you. Fellow Committee Members, thank you for taking time to hold this hearing today. I wish we were meeting under different circumstances, no one could have anticipated the devastation this virus has caused the American People especially Small Business owners and their employees. Congress came together and reassured Small Business by providing necessary relief through the Paycheck Protection Program. This program has helped 39 Small Businesses where 8 billion of relief, as the coronavirus forced congress to stay home, i had the opportunity to visit cordwood which is a specialty textile manufacturer and the largest employer in anderson county, North Carolina. To fulfill their civic duty cordwood has begun the process of manufacturing, and ppp applications went online, filed an application to receive loan. Due to a snafu in the process they were unable to receive a loan on april 16th. And Small Businesses, and in my opinion everyone involved is working to ensure Small Businesses survive the crisis. The easiest way to address this concern is safely reopening the economy. My biggest observation is the federal government, and and leaders at all levels of government can make educated decisions. We are gathered here today to discuss how the committee can work to provide needed relief to Small Businesses. I would like to commend leaders throughout the country for stepping up to the plate and working with the sba and treasury. And dutifully stepped up, lenders have been able to, better than any agency. My time is expired and i yield back. Miss davis. Thank you for holding this hearing on the covid19 response and recovery. I heard firsthand how the coronavirus is impacting Small Businesses in the livelihood of my constituents. Small businesses are the backbone of our economy. Now where is that more clear than in the kansas district. Failing to support Small Businesses through this crisis we have enormous and devastating consequences. Incredibly important, state and local orders are creating tremendous challenges for Small Business owners and employees. There are many challenges and fixes we need to incorporate to the emergency disaster injury loans for the Paycheck Protection Program. We need more money from these programs, i am glad the houses voting to embrace that funding but it is not enough. Congress must passed hr 6506, the Paycheck Protection Program extinction asked which would provide 900 billion in additional ppp funding. Not just the corporations needed in the wellconnected. They make it into the hands of minorities, women and veteran owned businesses. Im encouraged the ppp act which the house will vote on today set aside 60 billion on small and medium lenders. And development Financial Institutions. It is critical congressional intent followed implementation of these programs. And fewer than 500 employees, the sba and treasury excluded Tribal Enterprises especially tribal gaining. In areas of invaluable support for tribal government to provide housing and other services, and on both sides of the aisle, we are making progress on some of this, i yield back. The gentle lady yields back. The gentleman from california, the subcommittee on investigations, please coming. Thank you for calling this hearing, and the Economic Injury this is a setaside and lending authority. By doing this we address the banks behavior that made such a setaside necessary in the first place with my constituent young own to not a repair shop and has a banking account with bank of america and a credit card with jpmorgan chase. Despite longstanding relationships both of these banks refused to accept his application ppp loans. Ppp must be improved, translation for immigrants, entrepreneurs. And permitted to reopen before the end of the eight week ppp loan period. Under the current structure these exhaust their ppp funds and layoff their employees even before they legally and safely reopening. It must be improved by extending eligibility to ensure that workers are at the table and must be improved by addressing the unique needs of the selfemployed. And limiting emergency grants to 1,000 per employee in requiring 75 of loan forgiveness applies to payroll costs united selfemployed workers who spend as much or more on expenses like health insurance. We are working to gain these programs. Now recognize the gentleman from pennsylvania, the vice chair of the committee. Thank you. This is unprecedented, this pandemic, our resilience as a nation. Small business has been devastated. However, many local businesses are unable to access the programs, this is greatly concerning, and Small Businesses. Cannot survive without these loans, large restaurant chains receive 20 million in ppa loans and confidence in these programs. We need the sba to be in addition to thinking about what Small Business needs right now it is imperative to have operations in the future. Social distancing will be required in the immediate future. Creating two new Business Training centers was the first is a center for hospitality to instruct Small Businesses, affect food, hotel and the event industry. And they help Small Businesses transition to ecommerce, likely becoming the main source of revenue. It is crucial we help Small Businesses not only get food in the crisis but also a system in preparing for the future. The gentleman yields back. The gentleman from illinois, mister schneider. On this committee at this difficult time. The Committee Staff, extraordinary through this crisis. Im grateful we are having this hearing today as well. 30 million us Small Businesses employing 55 of the American Workforce is the lifeblood of the economy and are the lifeblood of local communities, they make our nation work. This committee has stood up, Small Businesses, on march 4th. They will do so again today, having additional funds. And the sba administrator. I stressed the need to provide applicants and an update on the status of their application. Many constituents applied for this weeks ago, with eligibility. These Business Owners are making the hard decisions for the future of businesses and plan longterm financial outlook. They reserve the program as a resource. I stress critical need for the administration to provide lenders and borrowers with clear updated guidance about how ppp loans are dispersed. We are preparing for the next round of ppp funds which is why the work of the committee is so credible. We must all be it menstruation accountable for making proper use of emergency Funding Congress has provided. I will work with colleagues on and off this committee to exercise proper oversight of the fda. And it is so desperately needed, thank you, i yield back. The gentle lady from pennsylvania. It has never been more evident to me, the work we do is so essential that we cannot afford to be partisan at this time and we will be grateful to you and your staff, you conducted yourself with enormous professionalism at this difficult time. I spent the last week listening to the community, and spent time in food banks, the real trauma this is causing, pain and worry. I deeply worry it will be drained within days. For agricultural businesses to be included, and will also be included. And they are directed to the smallest of Small Businesses. These Small Businesses and Small Business programs are meant to be emergency programs, the information as long as it exists but this will exist as long as the viruses with us and we need to make sure we have a robust testing system, a nationwide robust testing system developed to return ourselves and communities to normalcy. Our legislation to be conducted with triggering mechanisms, for future opportunities for funding these programs, do not continually reauthorize a lifeline for Small Businesses, to get out of this pandemic. To protect and defend this nation. Now we recognize the gentleman from florida. For two minutes. Having planned comments, i appreciate your leadership in this process. The circumstances in the last two months, anything any of us have asked for, it is a humbling privilege to serve on a committee that has so much to do with the solutions economically forgetting the nation back on track. Look forward to your continued leadership. Now we recognize the gentle lady from minnesota. To my colleagues on the Small Business committee. A critical time in your nations history and appreciate all the work, and i appreciate the opportunity to come before you today with a Paycheck Protection Program and Economic Injury Disaster Loan Program. And many Small Businesses across the district, whether it is in apple valley with the cannon river winery, i heard numerous times the implementation of the ppp has been flawed and Small Businesses are waiting far too long to get the relief they urgently need. We are facing unprecedented times in the fda is working hard but it must be better. For every Success Story shared with my office at least a dozen people reach out saying they were unable to successfully apply for a loan. These stories are heartbreaking. Constituents report far less money than promised through the idle program and we must fix that. They uniformly noted the ppp as it stands will not allow their business the flexibility to fully achieve, and cooperatives are reserved in future bills. We are holding the sba accountable through oversight that ensures big corporations are not crowding out the main street businesses the program was intended to help. There is data on loan applications and issuance including breakdowns by demographics and Congressional District. Im grateful we will pass a bill today to add additional funding to the Paycheck Protection Program and the idle program. This work must ensure both the amount and flexibility of these fundss are helpful to the Small Businesses that need it most. We are here to help protect each of the American Dreams represented by the Small Businesses in our districts. I look forward to our continued Work Together. We recognize the gentleman from new york. Thank you, madam chair. Small businesses on main street are the strength of our communities and the covid19 pandemic has made that clear. We see storefronts close down and hear from our constituents about the incredible volume of aid they need and deserve. These define the identity and character of our communities. For the past 2 and a half weeks i engaged with Small Businesses in harlem, east harlem, washington heights, they are in the care act. I can count on one hand, that reserved assistance. Small businesses were helped by this legislation are not getting any help and many have not seen a dime. They got bamboozled and they are mad as hell. I am mad as hell. This is not how many of us extended this program to work. Those who perpetrated this must be investigated and must face consequences. We need to make sure main street, just like wall street got bailed out, main street must be bailed out, im glad the relief package to set aside funds for missionbased lenders and ensure the institutions especially in new york city. We need minority depository institutions, micro loan lenders and depository institution in this relief program. Institutions like federal savings, Neighborhood Trust federal credit union and upper manhattan empowerment, used and trusted by our constituents. We must do better, we must bail out main street. I yield back. The gentleman from hawaii is recognized for two minutes. Members of the committee. Have a former Committee Member im grateful to share the profound impact of the covid19 pandemic on hawaiis Small Businesses. Small businesses are the lifeblood of my state. Hawaii has 132,640 Small Businesses, one business for every 11 people. We are smaller than most other states. Vast majority employ less than 100 people with the average of 12 people. Small businesses employ a majority of the workforce. Small businesses are the most diverse in the nation, 62. 6 by far the highest. More than a quarter of Pacific Islander owned businesses in the country are found in hawaii. And in travel restrictions, and employment rate was one of the nations lowest at 2. 6 . Today more than one third of our labor forces filed an employment claims and Small Businesses are hanging by a thread if not already closed. The committees incredibly hard work has been a lifeline to them throughout our nation. Especially important our efforts to ensure the immigrant and under banked communities are not left behind. Equally important are the Small Businesses in the tourism industry, they were among the first impacted by this pandemic and possibly the last to recover. As we continue our efforts together i urge this committee to consider hawaiis unique needs. This provides temporary relief, reader assistance will make sure the Small Businesses and a significant portion of hawaiis economy live until the state can fully reopen for business. I continue to stand ready to assist and appreciate your efforts. The gentleman yields back. Recognize the gentleman, mister barr, for two minutes. Ranking member, thank you for holding a hearing. As a member of the Financial Services committee i was involved in the development of the cares act. During this crisis, in frequent contact with lenders supporting Small Businesses as treasury and sba implemented the bill. I would like to address three concerns, the statutory obligations to its lender partners, second, overreach by the sba and the need to clarify new owners of existing businesses qualify. First, congress deputized lenders to deliver Small Business data in the cares act mandate the fda pay lenders processing fees and five days of loan distribution. Many lenders distributed funds to bar with yet treasury and the fda have not provided guidance about how lenders receive these fees. Leonards work across the clock to help their customers. One Community Bank in kentucky told me their employees work 24 hours a day in three, eight our shifts, with 18 hour days, they took off one day, easter sunday. Their story is not unique, shared by Small Community lenders across the country. These lenders must be compensated by the work directed by the statute, treasury and the fda called on lenders to quickly get money out to Small Businesses, treasury and the fda should not hold up their end of the deal. The fdas reliance on existing allegedly criteria boxes out businesses congress did not intend to exclude. Horse tracks provide significant downstream economic benefit in the communities. Some horse tracks are ineligible for ppp loans. I express these concerns to secretary mnuchin and voice my concern for local horse tracks and hopefully fda will minus guidance with congressional, modify the eligible of the criteria and finally one of my constituents was denied a ppp loan because he purchased the business after february 15th, provided the borrower must of been operational prior to february 15th to qualify. The intent of congress is the business must have a growing concern regardless of ownership at the time despite request to fix this. No official clarification. Appreciate the opportunity and appreciate the chairwomans oversight. The gentleman yields back, the gentleman from minnesota is recognized. Members of the House Committee on Small Business for allowing me the opportunity to speak on behalf of Small Businesses in the district who are dealing with the economic consequences of the pandemic. At this moment of incredible Economic Uncertainty we must help our Small Businesses survive this crisis was the payroll Protection Program and extended eligibility for the Economic Disaster loans are wellintentioned and a strong first step. I have heard from many in my district frustrated with the rollout of the Economic Relief Program Including how limited access often resulted in big banks prioritizing Large Companies i urge the committee to provide strong oversight. Additionally current eligibility requirements prevent organizations trusted by Small Businesses from receiving federal support. This includes local chambers of commerce and trade associations like hispanic Real Estate Professionals that provide targeted help to minority and underserved businesses. I urge the committee to expand ppp eligible to include 501 c 5 and 501 c 6s with these organizations ensure the Economic Uncertainty does not undermine durability to serve. Further, i have serious concerns minority women and veteran owned Small Businesses are at increased risk during the crisis. Business owners of color have historically faced greater barriers in accessing capital especially Small Business owners with english as a second language. Irons the committee to direct lenders prioritizing ppp loans for Small Businesses by minorities, women, veterans and those in underserved and rural markets in the next to me was package and ensure information is distributed in multiple images to reach all audiences. Finally i urge the committee to advance legislation that will provide more certainty to Small Businesses. The initial ppp funding provider lasted two weeks with we need to establish automatic mechanisms like those included in bipartisan ppp extension acts introduced by russ, so we dont keep lurching from crisis to crisis. Now is the time for swift action for Small Businesses. My district is home to a diverse range of industries and with that i thank you for the time to testify in front of the committee. We recognize the gentleman from astoria, mister bikirakis. Are you sure this is working . I want to thank the chairwoman, for holding this member day hearing on the coronavirus crisis. Since the establishment of the Paycheck Protection Program i won from countless constituents, the application process was difficult to navigate and many lenders were not receptive to their needs. We discover many wellknown business chains receive millions of dollars in program funds, they may have been prioritized for lending institutions. In response to these revelations i submitted to committee and leadership a letter asking any future funding of ppp loans contain a set aside specifically for truly Small Business, the mom and pops of our nation. I was pleased to see recommendation take form for Small Community and Credit Unions. And getting money into the hands of the businesses. As we move forward we need to find better ways to ensure local businesses get the help they need, in any future crisis. Im working on legislation that would ensure a portion of the ppp funds for any future Similar Program go toward truly Small Businesses. The sole proprietors shouldnt have to compete with national or International Chains during this time. They are in our communities, poorer communities engaged in local charities and teach our kids leadership lessons. They have been for us, we appreciate it very much. Recognize the gentle lady from texas, miss escobar. Thank you for giving me the opportunity to share what is happening to Small Businesses in my community of el paso. Over the past month i have been talking to Small Business a Small Business telephone townhall to gain deeper the coronavirus pandemic. The Paycheck Protection Program, established a quick infusion of capital, and we heard from any el paso into had yet to receive their loans from the Small Business Administration Even after being approved. Those who have applications experiencing lack of communication. The next round of ppp funding, the Small Business administration, funds are distributed in a timely manner and provide Effective Communication through the process. Another issue many Business Owners of raised is lack of flexibility. For example the 7525 spending ratio the Small Business administration requires for ppp loans. Under this rule 75 of the loan must go toward payroll cost while the other 25 go to business expenses in renton. Small payroll for larger business expenses, we should not be punishing businesses simply because they have fewer employees than others. The next round of coronavirus package should include a remedy for the thousands of businesses that apply for ppp loans but need flex ability. Finally i know im not alone when i say it has been sickening to see that Small Businesses like those in el paso have been placed in the back of the line and large corporations and publicly traded companies have been put to the front of the line. Our Small Businesses are the backbone of our local economies and leading them out in the cold is simply an acceptable. Congress must impose stronger restrictions on who can receive ppp loans and future funding bills and robust oversight over the program to ensure the funding is flowing to those that are intended. I want to say thank you for your incredible leadership during such an unprecedented crisis. The gentle lady yields back and the gentleman from texas. Now, im sorry, the gentleman from North Carolina is recognized for two minutes. Thank you, members of the committee, thank you for the opportunity to testify today. Small businesses employ 48 of the American Workforce, as a Small Business owner myself i know these businesses are from tightly knit teams working to provide services, products in their communities and when forced to make the agonizing decision to lay off workers it feels they are firing a member of their own family. Many times they are. What makes this more tragic a variables forcing their hand are beyond their control. The situation is not their fault. That is why i will vote to provide 300 billion in additional funding for the Paycheck Protection Program. This program is given a lifeline to 30 million Small Businesses and we need to keep up the momentum. The spread of the virus has slowed but our knowledge of the virus has skyrocketed giving banks that have to begin reopening the economy. They are listening to medical experts and i spent weeks on the phone with Small Business owners across the district who dont know how they will pay their workers if the economy remains shutdown. Is 43 of Small Businesses are considering permanently closing of the shutdown continues, we have to get the gears a economy moving again before they crumble and devastate the American Workforce for years to come. I look forward to working with you to reopen our country in a Great American comeback. I yield back. The gentleman yields back. The gentleman from california recognized for two minutes. Thank you for having me here today. In underserved committees, receive a critical Financial Assistance they need and are not turned away by big banks. Californias 30 fourth Congressional District have been devastated by the economic instruction caused by the coronavirus, it is home to many talented artists, and allow the television and film and theater industries to thrive. Like other freelancers and selfemployed individuals, still waiting to apply for the pandemic Unemployment Insurance. If they did apply for Paycheck Protection Program loan they were last in line. Many profit nonprofits, women and people of color, for example, and in that committee, there are Economic Disaster loans in the Paycheck Protection Program three weeks ago and received aid. They had to make difficult decisions to furlough the entire staff. They are one of many. The owner of elses bakery out of highland park, he went into apply for the paycheck protection loan and was turned away from his businesss bank despite the claim for 20 years which he didnt have a chance to apply before the funds ran out. He was one of many. They applied the first day these loans became available, funds were exhausted. National hotels and restaurant chains receive millions. It is evident big banks are prioritizing larger loans rather than loans on a firstcome firstserved basis. Many face Financial Institutions rather than private banks are more committed to making capital accessible to the committee they serve. The Paycheck Protection Program takes a step in the right direction by setting aside 60 billion for communitybased lenders like minority depository institutions and development and Financial Institutions but this isnt enough. I urge the committee for more funds for Financial Institutions and direct the department of treasury to reveal who is getting the loan and who is not getting the loans. With that i yield back. The gentleman yields back. The gentleman from nevada recognized for two minutes. What about Lessons Learned . This is the first page of the cares act enacted by the senate signed by the president , this is the first page of section 120. 110, the code of federal regulations was not enacted by the house, not enacted by the senate and was not signed by any president of the united states. It is regulation that is being promulgated to process sba loans during regular times. Nothing wrong with it in and of itself, the sba issues guidance to Financial Institutions it says are internal regulations, say you cannot apply for a loan. The effort of language and occurs act was any Small Business defined as 500 or less employees, they are fully licensed, legally operating in their jurisdictions, sponsor Little League teams and all those things. And internal regulations were used to apply. Suggested the committee we need to make a differentiation between Economic Disaster when we pass something, we want to reach as many people as possible and internal regulations which are 20 plus years old that bear no resemblance to the time we are at today. Under Lessons Learned, and to the specific language of the statute. The gentleman yields back. The gentleman from nevada is recognized. Your committee and staff, i remember being on a phone call when a pastor cares act. With all the possible scenario, with the needed aid to companies and Small Businesses. To protect the paycheck of all employees. That exception is impacting my community quite significantly, i share the views of my colleagues from nevada. There was no statutory mandate excluding gaming from this bill, washington bureaucrats chose a regulation that was not meant in this bill. The administration finally do the right thing and address this administratively. The bigger part of the cares package, they get to access this. The tavern owners and Convenience Store owners, these are all deserving of protection. I know you understand that and thank you for all your work. I asked the administration make this exception and in my opinion overreach, this can be will address the statutory early in the next round. Thank you for your help. Now we recognize mister byrne from alabama mister byrne. To speak on behalf of Small Business owners, no matter how much money we pump out of washington, we got got to get back to work. With Small Businesses, a pretty small dollar loan. To set aside specific funding in small banks, they were doing yeomans work processing thousands of small dollar ppp loans and all Financial Institutions to do the same. When we see some success with ppp. The economic loans, promising 10, 000 grant. For Small Businesses in my district, supposed to be there to help them get this money in this unprecedented time. They are in desperate need to promise underlying loans to meet working Capital Needs often to supplement their ppp loans yet many of my constituents who received the loans and grants were disappointed in small amounts provided. Most heard nothing from the sba and are unable to obtain answers over the telephone. The only process to check on their loan status. As of april 20th sba reported 183 loans for the entire state of alabama. It appears sba has only process that most a quarter of grant applications. The situation is unacceptable. A letter sent to the sba with 103 of our colleagues we asked them to brief all of us on the ideal situation and provide answers our constituents need. Thank you for the time today and i yield back. The gentleman yields back. Recognized for two minutes from texas. I thank the chair and members of the committee for allowing me to testify, the coronavirus has caused a Public Health crisis unlike anything seen in recent memory, not only infected hundreds of thousands of americans but has infected our nations economy. Temporarily shuttering businesses to social distance is correct but has left numerous Small Businesses struggling to survive. Paycheck Protection Program and Economic Injury Disaster Program are vital. Small businesses are the backbone a economy and they need a lifeline during this time of crisis. In the Paycheck Protection Program and Economic Injury Disaster Loan Programs provided by the cares act excluded 5016 organizations which include chambers of congress. And they have access to needed resources. These organizations need to support. Ranking member chabot joined me earlier this month and this problem was delineated. I suggest the committee relax the affiliation rules to allow businesses with local branches to receive assistance. They are operating like a Small Business but able to receive assistance because the Parent Company comprises 500 employees. During this time we need to be practical to allow no hardworking americans lose their job or business. We extend assistance to 501 c 6 organizations and we cannot leave them behind. The gentleman from georgia is recognized. Thank you, madam chair and thank the committee for all you have done. You have done yeomans work and appreciate it in supporting Small Businesses across the country. Your members have been a valuable resource, the Paycheck Protection Program has rolled out over the next month is nothing short of 349 billion program and send funds to businesses in a short time. And positive stories it is not without its flaws. Some priorities Going Forward, assuring funds reach our world communities and our cultural producers the initial confusions of who was eligible for the program how loans should be calculated or submitting it to the sba system led to a delay from many Small Businesses and receiving a lower missing out completely on the programs first round of funding. It has been around how 1099 independent contractors to be considered for ppp. The legislative text provides two options, Small Businesses include their applications, to 99 workers will apply individually. The ppp f hq says businesses should not include them. This must be clarified. And it is a justifiable fear, and by constituents over the last month. 60 billion for smaller lenders. To promote the ppp, with liquidity facility by the Federal Reserve to encourage banks to provide ppp loans. And they need to be aware of the resources. I want to thank the committee, to share the district opinion with ppp to redirect the need for congress with certainty throughout this pandemic. The gentle lady from virginia recognized for two minutes. Reporter thank you, madam chair. Small businesses are the backbone of the district, 115 people employed by Small Businesses account for more than half of all employees in the district. At this time of crisis more work must be done to help all Small Businesses. Display congressional intent some businesses cannot benefit from the payroll Protection Program. Sba must clarify affiliation as the relate to ppp loans. For seasonal businesses i recommend directing sba to face loan eligibility on revenue from the same timeframe last year rather than a prior month. To the for the start of the eight weeks period during which extended loans can be forgiven until the date businesses can reopen. Continue access for ppp funds they should incentivize banks to serve new customers or prohibit banks from tensions which businesses can apply for ppp loans. The commission prohibit big banks from continuing the size of the loan while processing applications so the smallest customers have an equal shot at funding. Businesses that provide lower payroll costs to the sure of overall operating costs should be allowed to use more of their loans for nonpayroll costs. This should be beneficial for the hospitality and aquaculture and fishery industry which need to have overhead costs. The committee should require the fda applicants for timelines. The loan grant and applications of the process. It is a quick distribution of funds the programs integrity. In coastal virginia, thank you for the opportunity to share these priorities for the legislation. I yield back. The gentleman from yukon, mister curtis. This is an unprecedented time and many Small Businesses are experiencing unimaginable losses to nofault of their own. They make up 90 of the businesses in my district. As a former Small Business owner i have a soft spot for their courageous entrepreneurs, to grow businesses and economy. They dont believe it is government that will be save us but Small Businesses. The recently passed cares act pumped billions of dollars into the economy, with 500 employees and critical help at an important time. This note we will vote on later today, resources to parts of the country and economy that are currently on life support. Im here in washington dc to vote for this legislation to help Small Business owners and employees. Mister kilmer. From washington, you are recognized. Small businesses are not only the backbone of the economy but they are the star running back and a score the touchdowns on main street across the country creating 60 of new jobs in the private sector. As we work to contain this spread of coronavirus and save lives our star running back, Small Businesses are getting tackled behind the line of scrimmage. That is why the cares act, including Paycheck Protection Program, on the payroll. They have a rocky rollout and more funding is needed. I believe there is no time to lose. I introduced bipartisan Paycheck Protection Program to triple the funding of ppp and extend the programs duration and uncertainty and breathing room to build demand. What is needed to retain the workforce and cover basic operating costs, the blue to get more assistance, we need to think about what it means if businesses cant reopen in two months. We need to know what the call will be in multiple situations. Thats why federal assistance should building automatic triggers that kick in the Economic Conditions remain dire. We need a game plan that includes more help for Small Businesses facing challenges now that also includes stabilizers that work quickly and automatically to get help where needed and when needed. Time for a comprehensive strategy to help Small Businesses. Think of it as mainstreet peace mode to empower them to score the points our economy needs. Hope that economies will consider the extension act as part of the plan. Thank you, madam chair. The gentleman yields back. The gentleman from indiana is recognized for two minutes. Im Glad Congress has come together to publish really funding for Small Business. The health and safety of hoosiers and allamericans is and will remain my top priority. I call us here today we have also been hearing from Small Businesses in the sixth district of indiana throughout the pandemic and across the country. I want to address Property Owners who are not relieved receiving the relief they so desperately need. Customers sheltering in place, landlords in my district and nationwide are facing a catastrophic revenue collapse that will create lasting damage in our communities on the Property Values and property tax revenue. Madam chair, even giant retailers who kept their doors open to provide essential services are not paying their rent. Retail stores are shutting down and closing, no really for the landlord to run the town centers and strip malls which house these stores. The government has forced, and in the Property Owners are financially suffering. We are on the brink of defeating this virus but when our country reopens, will there be stores to open back up . My colleague on this esteemed committee, we must ensure landlords are not forgotten in this process. There are Many Americans who own buildings with no paying tenants in the man they have major issues looming. There are several Companies Like that in the sixth district and across the hoosier state. Of a Small Business owner i feel it is my duty to speak up for them in dc and as we fight to defeat this virus for the American People, god bless all, i pray everyone stays safe. I yield back. The gentleman yields back. The gentleman from colorado, Mister Nichols recognized for two minutes. Thank you for giving us this opportunity and thank you for your leadership in the course of the last several months. The Paycheck Protection Program has provided some relief to struggling Small Businesses but the rigidness of the sba in washington dc absent a potato several these, including startups in fort collins, seasonal businesses in mountain communities and resort areas and mom and Pop Restaurants across colorado from accessing these google funds so with regard to the ppp i respectfully request that you consider the following proposals. First extending the covered period of loan forgiveness longer than eight weeks so it better reflect the current stayathome orders, providing flex ability for Small Businesses with low level costs who are unfairly disadvantaged by the rigid 7525 rule promulgated by the sba, a huge issue in mountain communities that i represent. Also providing flexibility for seasonal Small Businesses by tying the look back period with the corresponding year ago 2019 period so that our ski areas can recover when Public Health emergency has passed and i represent the Vail Breckenridge winter park, some of the best communities in our country tremendously hard by this Public Health emergency. Representative lee articulatd earlier today from the great state of nevada. The wall streethe wall street reported to have the honor of representing the mom and Pop Restaurants have been severely impacted by the exception that i mentioned and finally, transparency and accountability which i know the chairwoman cares so deeply about this or so we can sure taxpayers know how the sun to be spent and stop some of the abuses weve read about. Again i think the chairwoman as well as the Ranking Member for their leadership in these very trying times and appreciate your consideration of these proposals. Thank you. The gentleman yield back. Mr. Johnson is recognized. Thank you, madam chair and Ranking Member chabot, all members of the committee for your hard work and swift action in helping to produce the teacher Protection Program. Its been a lifeline as you know saving millions of jobs and helping countless Small Businesses stay afloat while were in these uncharted waters. Will get through this. Louisiana its worth for what. With a 26,635 launch the brute worth more than 5. 1 5. 1 billd that is that essential. Small businesses are the b backbone as we all know and as we had this additional funding to the Paycheck Protection Program today were going to have at lot more businesses. Three it is very quickly that hopefully we will consider Going Forward. Number one 11 associate myselfh remarks of mr. Pence. We do have a catastrophic revenue collapse and many landlords and Property Owners who didnt have any relief from ppp and theyve been crying out for help and some of that is welldeserved. Number two, chambers of commerce, 501 c 36 501 c 3 sx organization left out of the ppp and and i believe and i know you do our local chambers will be critical players as we begin to rebuild the economy. They are the ones that will help plug all this back in to get the event rebook and help Small Businesses. They need to regard. Finally last i did its been mentioned a couple of h times, e need some flexibility on the back end of this for the repayment of this. Theres some businesses who are not having their employees come back through no fault of the own and we need to give them due different on that. They are in good faith. We canar separate the ones who e but the ones i to be given that. The latter to work with you. Thank you for your partnership, the opportunity to speak today and i thank you for all your work. I yield back. Gentleman yield back. The gentleman from virginia, mrr two minutes. [inaudible] do you need me to start over . Thank you so much for holding the string today. Small businesses throughout the country have seen the revenues become nonexistent and meditate to the stayathome orders and to stop the spread of the coronavirus. The Paycheck Protection Program has allowed many Small Businesses ton stay afloat and mitigate some of these layoffs and revenue losses. Though there were some technical problems early on i was surprised how quickly tracy and sba were able to move. By april 11 i was sitting for businesses across my district that theyre getting the funds they had applied for. The Economic Injury Disaster Loan Program has not been nearly as successful. Even thoughfu in the first aid package Congress Passed in late february we added additional money to help fund that program. Ive heard numerous complaints from Small Businesses in my district over the past two months who have yet to receive those funds, and they dont know the status of the applications. I would urge the committee to investigate the reason for sba delay on this program. I would also urge the committee to assess the feasibility of having adding banks, Credit Unions a small lenders carry out the eidl program as well as ppp. While the ppp program has been a success i amaf afraid it could e a bridge to nowhere. While many businesses have been able to keep their employees and to stay open, without at least beginning to reopen our economy before the end of the eight week period. The bridge that conversation provided will collapse or leave our businesses out in the end of the bridge with nowhere to go. These Business Owners will once again had the sad duty of link off the same employees and in many cases closing their doors forever. In just a few examples from my district where ive been out and about, the guide as it will change on my car says that his business is only 45 of what it was before. One off the local fast food restaurants has lines in the drivethrough way back. Their business even though it looks like they are being successful their business is off by 55 . So i would have to agree with my colleagues who have asked for some flexibility on that repayment and it would also have to say while those things are happening in some things have been pushed off, the real estate taxes, personal property taxes and business license taxes all will have to be paid at some point and get these businesses dont havent the revenues that they anticipated. I yield back. Gentleman yield back and we recognize the gentleman from new jersey mr. Malinowski for two minutes. Y thank you, chairwoman velazquez, Ranking Member chabot for the opportunity to testify ymout the Paycheck Protection Program. The ppp is an important Necessary Program to keep businesses alive and employees on the payroll. I dont need to tell t you the rollout of this program in many parts of the country is been a disaster. Ive been in close touch with Small Business owners in my district and it is difficult to fully capture the level of fear, frustration and uncertainty that they are feelingra right now. They are also just plain ticked off when they read at a National Steakhouse chain made off with 20 million that favored by Bank Customers who didnt need help notey as much as they did cut Concierge Service while they wait on hold for hours, day after day hoping for some small piece of this. I am delighted we are setting aside money for Community Banks now but i am livid the said at the administration refused to consider a single change to the program to ensure that banks treat all of their customers with equal respect. Im angry that some of us were accused of playing politics erbecause we wanted to fix this program before pumping more money into it. We all know its going to need more money again soon, and i believe it should beve fully funded for the duration of this crisis, but lets do better than that. Before we add more money to ppp lets add rules that prevent big company with access to other capital from gobbling up loans that should be going to truly Small Business is big lets create a dedicated pot of money for those truly Small Businesses so they go shop, the laundromat, the flower shop with four owe five employees using competing against companies with four or 500. Lets add stronger eligibility requirements to ensure the program is only open to businesses actually at risk of going under and i wish it went without saying the big banks should not be writing the rules here. We should be. The banks have to be made to understand that they have been drafted just as soldiers in the war are drafted. For this purpose they are agents of the American People acting at our interests, not their own, and if that has been made clear enough, its on us to make it so. So. We are in the worst economic crisis since the great depression. How we respond would decide whether the economy of the early 2020s will look like that of the early 1930s. Small businesses are digging deep and to d do right by their employers, the rest of us need to step up and have their back. Thank you, madam chair. Lds back. The gentleman from south dakota, mr. Johnson is recognized for two minutes. [inaudible] madam chair, mr. Ranking member, thank you. Of course i also want to thank the 11,000 south dakota businesses that participate in the ppp, the Paycheck Protection Program. Our recovery, which will take place over time, will be much more successful it wil will hapn more rapidly because those businesses cut their employees on the payroll during this difficult time. Congress has done a number of things right, a lot of things right with the Coronavirus Response packages, but of course we have not been perfect. And today i want to highlight two key areas where they still need to act. First, we talked to Many Organizations on the outside of the ppp looking in. And so, we need to adjust what about thall ofthe criteria so tt cooperatives, small gaming operations, local hospitals with governmental affiliations and franchises, but they also can keep their employees on the unemployment rolls of that will help the economy. Second, i tend not to stress how important it is that we continue to get assistance to the Agricultural Producers. Theyve been simply better by the combination of unbelievable market volatility and price declines. Weve made some progress carrying 23 billion for the producers, that more funding is clearly needed. We also need to address to the payment limits and provide flexibility to support the producers that have no place to take their livestock because the processing plants in their areas have been shuttered or drastically reduced capabilities. Those are the two most important issues i would want to talk about today, there are more that ive outlined in this letter to the speaker into to the republican leader and i hope that it can be added to the record of todays proceeding. Thank you for this opportunity. Thank you. The gentleman yields back. Thank you madam chair and all of you for being here today. Im not here to complain, im here to say thank you on behalf of the hundreds and probably thousands of Small Businesses in my district have benefited. I want to thank you for the response to the pandemic and command the sba and the treasury for their expeditious work to provide relief to americas Small Business communities. They distributed 250 billion in loans and grants support to Small Businesses before the treasury was able to get 1,200dollar checks to people they knew their accounts were. That is pretty remarkable and i commend them for that. Over 20 billion a paycheck 20k Program Loans have already been improved to eight coke approved by new york state. The loan program has begun to make their way out across the state. Over 210 million in advanced funds, that is fantastic. The programs have helped many Small Businesses keep their doors open and workers paid. I cant tell you how many businesses ive heard from often calling up an emotional state saying thank you. Ive worked my whole life for this and we had this disaster and were it not for this program i would have shot my doors. That is working. Thats what the government is supposed to do and that is what youre doing here. The Paycheck Protection Program in healthcare enhancement act will ensure more Small Businesses are able to obtain relief. I liken it to be raised at the beginning. They are ready to go, they are just waiting for us to get across the finish line today, and we are going to do that. An additional 310 million for the Paycheck Protection Program to ensure more businesses can participate and increase funding for the Economic Disaster program. Im also pleased legislation was small and mediumsized firms which are over my district to take advantage of the program and there was a welldone adjustment by all of you. It provides 2. 1 billion to support the Small Business administration as they work to administer the programs. Congress must work to ensure thathat it remains available toe struggling businesses Going Forward during the crisis. Additional funding will be necessary to continue providing relief to ensure they have confidence in the program. Additional work is needed to ensure that it accurately reflects the payroll needs of all businesses. To advocate with the representative of minnesota for additional flexibility for the athome employees which is very important. And with that, madam chair, i would yield. The gentleman yields back. The gentleman from pennsylvania, youre recognized. Thank you madam chairwoman and than thank you to the rankig member as well. I am going to cut right to the chase. We know what the issues are. It was welwas well intended andy executed. We are here to put more money into the program, clearly needed. Theres got t to be guardrails t up on the program to prevent what we have seen in pennsylvania which im sure all of my colleagues have seen a where anybody put in the same bucket regardless of whether they are a Hedge Fund Owner or a Brokerage Firm that is down 10 revenue with no plan to layoff employees and at the same time you have small mom and pop shops if you, no cash flow for getting denied. That is i isnt the congressionl intent of the act program. Weve got to fix it and include the nonprofit communities as well. We know what they have to do here. It is a make or break moment here to read second is a topic that the madam chairwoman raised i signed onto a letter along with the committee that used to be a member of the committee as well. We have two choices Going Forward. God forbid we are down this path. We either choose the path of the government bailouts or insurance products. Right after 9 11 we created a program that made all the sense in the world is market price, riskbased and backstop. There are a lot of Industry Trade people out there trying to say this is not a problem, they dont want to be part of the solution. They have to be part of the solution. We need a product that ensures the Small Businesses because madam chair there are small bankthings and the communities t are now extending lines of credit and financing unless they can show a level of insurance. Thats got to be the solution Going Forward. These are inefficient, they missed the target and result iny and missed the mark. We can fix it. Lets Work Together to make sure the guardrails are set up so that we can protect our mom and pop Small Businesses and not give the loans held for the people that dont need them. The gentleman yields back. The gentle lady from washington, youre recognized for two minutes. Thank you, chairwoman and Ranking Member for holding this hearing. The Paycheck Protection Program is extremely popular based on the demand that we are seeing and for the likelihood of Small Businesses and nonprofits, it is imperative as you have heard many times do we ge that we gete implementation right. We cannot punish the small Small Businesses just because they do not have longstanding lending relationships with banks. We need automatic triggers so the loans and forgiveness will renew if this persists longer than we anticipate and businesses need to keep them on payroll for more than eight weeks. Otherwise mps will end up on unemployment eight weeks later. As a lack of detailed guidance and the administration of the requirements for the loan forgiveness, put Small Businesses and challenging positions whepositions were vacs at the moment about the payroll polices and recorders. My constituents have expressed concern about things not honoring the firstcome firstserved defense. Ive worked with several businesses that there ppp application goes unanswered by their bank while larger customers are actively courted and have their applications approved quickly. These are anecdotes and we will know more when we have good oversight. But many businesses that act quickly and do everything right are still getting overlooked by their banks. There are those that havent heard about their application and the first possible day they use the local bank and they havent yet received a loan or word and the businesses average 80,000 per year and have just two employees and they have been left out. I am hopeful struggling businesses will get help with the passage of the act to set aside funds to be distributed to the small local banks of the changes we want to make sure the Restaurant Owners and bed and breakfast owners are taking care of. Thank you very much. At this time the committee is going to take a short break and the committee stands in recess. [inaudible conversations] [inaudible conversations] [inaudible conversations] order as a smallbusines small businef i am grateful to all of you for the important work that you do on behalf of the Small Businesses and in a couple of hours i will be voting to inject another 310 million into the exhausexhausted smallbusiness f programs. I do so with serious reservations while the need is as real as it is urgent, the programprogram simply are not wg as intended. Far too many Small Businesses in my district and throughout the country have been unable to access the ppp programs even as they face the prospect of having to close their doors for good. Im afraid a Program Designed to support every business is benefiting those which need it the least at the expense of those that need it the most take bars, clubs for example. The quintessential community, Small Businesses without which no american town would be the same. Same. They are shut down and shut out. The owner of the bar and grill it didnt work for him due to the 7525 rule and other challenges, so he applied for a loan on april 8 over 2 weeks ago and what did you hear back, crickets, not even an acknowledgment of receipt simplification. You can say that they couldnt get the money. There are thousands of businesses that have benefited from this and i am grateful for that. But there are thousands more that have been shut out and need our help now. It will not matter how much we throw at the problem by which it is distributed. We must fix what is broken and ensure the oversight and accountability is present where the money flows and where it goes. This will businesses of our country, i say keep the faith, because help is on the way. Thank you, mr. Chair. Think you and i appreciate the opportunity to talk about how the provisions of the ppp have impacted businesses in pennsylvanias 12th Congressional District. In the first round of funding pennsylvania had nearly 70,000 Small Businesses take advantage of the program. These businesses have received a combined total of 15 billion in loans. Similarly 700 Small Businesses have received loans from the program for over 138 million. The Paycheck Protection Program has been important and successful in keeping Small Businesses open and people higher during this pandemic. Every dollar used to keep the businesses operating in people employed as a dollar invested in the economic recovery and also a dollar not spent on unemployme unemployment. I can talk from the experience of talking with people in my district that has been Robust Interest in the smallbusiness components of our covid19 response in pennsylvanias 12th. Recently the office facilitated a successful call between Small Businesses and banks in the district and regional officials from the Small Business administration. The Small Business administration which has been a great resource abou throughout e process answered questions for over an hour through the smallbusiness lenders. We had hundreds of people on the call and found the information was helpful in the process for applying for smallbusiness relief. One of the questions weve received is how the programs apply to the agricultural community. While fighting forms have been able to access paycheck protection benefit, im glad to see the language and hr 266 that will confirm these apply to the qualifying forms. Small businesses employ nearly half of all americans. They are the heart of the economy and will be a major player in the economic recovery. Many speak about finding a way to the new normal in place as far as the economy is concerned. I hope to return to the old normal where the American Worker will be the greatest economy the world has ever seen. Thank you and i will yield back. Thank you madame chair and Ranking Member of the Small Business committee for the opportunity to provide feedback on this important program. Im pleased we are providing additional fun thing that i am deeply concerned that without further programmatic changes and further assistance many Small Businesses will be forced to close permanently causing Enormous Economic suffering and slowing the recovery. Many Small Businesses and nonprofits in my district are frustrated by the difficulty of getting help in finding a lender and theyve been moved to the back of the mind behind smaller businesses with relationships and feel forgotten. This is a particular issue as we have seen in the recent times ts report for the Small Businesses that the customers of the large banks that are not the favorite customers of those banks. They must work on flamingos businesses, large and small that need it. Small businesses that have seen the revenue could kiss you cannot survive much longer. They will close and many will not come back. I strongly urge the committee and the congress to ensure greater access to the luria programs but also how we go further to get help to the businesses and nonprofit the nos that are most needed. Im also puzzled why the First Tranche of the funding has been distributed in equitably among the states of california receiving one of the smallest per capita amounts. Rehiring the workers that are already laid off and on unemployment compensation, they want to participate in this program. They are required to hire the he employees and theyve already te input keys and theyve already gone on to the unemployment system. So if we can consider how that would play to these businesses to make sure they keep their doors open finally i would like to advocate for a broad vision package like the large payroll guarantee program that would be equitable for the businesses large and small and would be efficient with layoffs and would be commensurate with the size of the economic challenge facing the country. So i think you for your attention and your work on this and i wont yield back. And the two encouraged the fda to allow the lenders the discretion to offer loans in chapter 11. I think by asking the lenders to review the underlying business and in shorts and a strong position can save many businesses. Less than 500 individual practice locations. To be avoided the same loans as the Hospitality Industry and restaurants in fact they require medical practice to submit applications to qualify for an Accountable Care organization by each practice location and they want to look at the total number of people working there and this makes no. Absent this there will not be a private practice of the semiafraid. Last i want to encourage the committee to start considering a different start date for the loan forgiveness and severe county in tennessee where they do a lot of entertainment, this goes across the country. And if you have a comedy barn and use this program. I appreciate the opportunity to speak today. Youre recognized for two minutes. Thank you very much for your time and thank you, chairwoman velazquez and Ranking Member for having us here today. For the new york city businesses and i commend the work in establishing both the ppp to the unprecedented programs have seen unprecedented demands as you all know they are facing absolutely immense challenges during the turmoil and uncertainty of this pandemic. We can start by ensuring history doesnt repeat itself by letting these things prioritize the wealthiest clients while Small Businesses in my district weight for even a reply after submitting the replication by using prescriptive languag langd future relief bills we must look out for the businesses who need help the most that make it harder for the big corporations to use emergency relief funds to optimize the bottom line. We also have to look ahead. They estimate that this next trend of money could last only a week or so based on what im hearing in my district, i cannot tell you, i cant tell my constituents with a straight face that they would be able to access these funds again when this dries up. We need to do more for the Nonprofit Sector as well. Plain and simple, more relief very well might be needed. This crisis is far from over, and i think you again for all of your extraordinary leadership. You are recognized for two minutes. Thank you mr. Chairman, Ranking Member, thank you for the opportunity to share the effect of the crisis on michigan and michigans eighth district. I consider the bill we are going to vote on today as they must pass piece of legislation. In michigan we have been deeply hardhit by the crisihard hit bo states have lost more lives and michigan is a fraction of the size of those states. Our governor has issued stay home stay safe designed to limit the spread of the virus and that has unquestionably saved lives, but it comes at a cost to the economy. Small businesses, retail shops and cafes, restaurants, greenhouses and one companies, hair salons and shops have had to close and sharply reduced their Business Activity weve held virtual summits with businesses, done face to live in detroit and lansing areas and main street businesses across the district are eager for any news. In that environment the passage of the ppp patient for Action Program and replenishing it today is as well. Let me share what ive heard from the businesses. Receiving the ppp loan means the work skills corp. Continues corn continues programs that last year placed 1200 people in jobs providing services to the most vulnerable residents. They were able to keep buying seasonal employees on the payroll preparing for their opening in Rochester Hills adult keep the farm alive to continue to provide Economic Opportunities for the developmentally disabled and were very beloved minorleague Baseball Team is better equipped to weather the storm and bring back the summertime joy and i thank you for passing the legislation and for proposing it and for allowing our smallest businesses to benefit this time around. Thank you so much. Thank you to the chairwoman and the subcommittee for this opportunity. Thank you to my colleague. As many of you know, new jersey is one of the hardest hit states in the nation along with new york we account for 45 of the cases nationwide. I am grateful to the committees work helping our struggling Small Businesses face this unprecedented pandemic. I testify today for new jerseys Small Businesses and towns as we continue to develop future stimulus packages. I want to highlight two key issues i am seeing in new jersey. First, it is often into the Paycheck Protection Program only the first step we must take the Lessons Learned and apply them now. A yoga studio who stopped taking applications, and the list goes on. Its not sufficient to add more funding. We must make it easier to access and live up to the intention of the program h we created. The 10,000dollar grant promised within three days are now only marginally available devastating Small Businesses and demoralizing owners that are fighting to take care of their employees. Second we must ensure direct funding the smaller towns and counties. The first step providing funding for thto the states and larger localities but the counties like my district which so just under the population threshold to qualify for the funds. Furthermore Rural Counties the challenges are still resource intensive. The funding is critical to keep the site up for the constituen constituents. We must rectify this and support or county officials to as the face budget shortfalls on top of the crisis. Local are incredibly concerned about the loss from sources like construction permits which have already dropped because of the deduction cap into the inability of residents to pay property taxes. So thank you for this opportunity. I look forward to working with you on a bipartisan basis as we move forward on the critical legislation. Thank you very much. Thank you, acting chairman into my colleague for your leadership and to have the opportunity here to be heard today in this hearing. I can say pretty much with my Ranking Member of the Budget Committee passed on. I will save the specifics for what i think could happen to the Small Business peace of the actt of the past and what we are considering today and talk a little more generally about where we are as a country physically. No doubt it is a challenge unlike anything we faced before. I think we would all agree the pandemic has impacted every facet of our life and our economy. The response just as the situation has been unprecedented we acted swiftly to the families and businesses across the nation. It was the right thing to do between the act, family first act, we delivered immediate relief to support the medical workers in hospitals, Health Families and worker workers ando stabilize the economy to the best of our ability. With no template on how to navigate the times, the goal was to make the resources immediately available, and we did. There is no doubt that these efforts delivered assistance. For example, arkansas saw 21,000 ppp was administered to totaling 2. 7 million to help Small Businesses in arkansas and keep the workers on the payroll. However the continued response must be focused on doing what is necessary, not what is wanted. We must ensure the efforts are targeted to help, not prop up a opportunistic. Discussions about another high dollar package already underway and even though the full effect of the crisis, nor the impact of the bill that we have already had signed into law or fully known. May i remind my colleagues before anyone heard of this, the nation was on track to overspend itself by more than a trillion dollars. I believe that its important to address the needs of donation, but i also believe that it has to be done in a very responsible way. You have to be targeted and must be transparent. The insatiable appetite to throw a lot more at the problem must be constrained. I will yield back the balance of my time. Thank you. Mr. Hartford is that you were recognized for two minutes. I want to thank the acting chairman. Its great to see you in that role and mr. Chabot and members of the Small Business Committee Staff for keeping us safe, i want to thank you for allowing me to address an issue important to nevad nevada but also affecte 43 other states in the country. The gaming industry is vital to local Small Businesses. It supports more than 350,000 of business jobs and delivers 52 billion annually in Small Business revenue including construction, manufacturing, retail and wholesale terms. Many states especially in my state of nevada, it pays a significant share and contribute to the complete of th complete s with more than 10. 7 billion of gaming taxes and tribal revenue. The tribal and casino operators have been forced to close the doors and while many Small Businesses are unable to participate in the Paycheck Protection Program, which we provided now 660 billion in relief, the sba has used unfair and i would say discriminatory guidance and has stated that Small Businesses that have a portion of revenue are to be precluded. This is outrageous. Nevada currently is ranked 43rd out of 50 states in the amount of money we have received from ppp. We have over 8700 businesses who have been funded, but disproportionately, restaurants, spoke taverns and other local businesses are not even eligible to apply and therefore the data is being left out. On top of that, minority and womenowned businesses havent gotten an equal share of the funding either. So while im voting for the bill today, i am calling on the committee to join a with me and members of our delegation to fix this issue that prohibits the companies from getting their share of the money come and im asking you mr. Charan to work with us as we address for nevada and all over the united states. Thank you and i will yield back. The Ranking Member to be able to address the Small Business committee i would like to echo some of the same comments made by my colleague in regards to making sure that we know where those dollars are goin going ano showing fiscal restraint as well. In colorado, Health Care Workers and officials have responded admirably to the crisis but there are a few easily resolvable issues that could help maximize the healthcare response to a. Many in colorado o are in a unie situation of being partially owned by the county and the district under state law while they function like nonprofits, the structure is creating confusion about whether they are eligible. The Small Business act prohibits them from accessing Small Business administration loans. Ive written to be able to seek clarification on this issue and was told by the administrations liaisons that they are working on it. Meanwhile, ive heard from at least two hospitals in my district that were approved and received funds subsequently have been cautioned by their attorneys against using the funds in the event that they are deemed ineligible for the program. The hospitals offer aid on the thin margin and it would be a lifeline for many of us. Unfortunately because there has been a lack of guidance in the interim package was silent on the issue county and district on hospitals or one and we need to clarify the issue now because we need clarity on it. We cannot afford to lose the rural hospitals and close the doors in the midst of this. Id like to ask the committee, treasury to take up the concerns and Work Together to resolve the issue for the hospitals and many who rely on them. Thank you for this time. Thank you for the opportunity to testify and for your continued leadership to the countries economy at the struggling Small Businesses in the face of a Public Health crisis for the likes the nation has ever seen. In michigan, im working around the clock with Small Businesses and the 25 beautiful poems ive had the privilege of representing comprised of beautiful downtowns with restaurants, gyms, hotels and people who came to the great nation to build these business businesses. People who grew up in my community who were born here and graduated from waterfield kettering, people who have given it all to achieve the american dream, people like my parents that are smallBusiness Owners. We must orient our policymaking towards the longterm economic viability in our new scientific reality. We are not fans in charge as we would like, but im optimistic. I have hope we must be bold and reckon with the task at hand for those in the economic viability for the workers and other entities. We cannot save the revenue loss for the businesses. We do not intend to. We must achieve the guidelines we will learn, evolve and continue to prevail. I am grateful for the potential as the former treasury official during the last financial crisis and i worked closely on the states Small Business jobs act. Many of the businesses have shared obstacles to accessing the payment Protection Program funds to the lack of transparency and distribution. Many businesses will be dealing with the impact of the pandemic for years and we will not be successful without additional flexibility. I remain committed to you and the committee for the health and success of our overall economy. Thank you. And to keep the businesses they inherited alive but weve got to change our approach progress to get our businesses back up and running. We have to our economy. We cant fund our economy from washington. Weve got tove get people back o work. If were going to continue to have programs they need to actually function. As many of my colleagues previously talked about i think my friend spoke earlier about the extent to which the ppp program isnt functioning the way it needs to work. The combination of the Unemployment Insurance program where we are paying people more to not work and to work is fundamentally undermining the ability of businesses to get the benefit of a forgivable loan that t requires them eating able to go back and rehire people. This is not the way for us to do business. Congress will have to meet. We should be here every single day until america is back. Because we cant allow these 75 requirement, eight week required, the repaid loans, or asking businesses to take a gamble to pay back the loans than six months, repaid in two years hoping too get it for givn to rear people they cant read her because of Unemployment Insurance is paying people more not to work. Thats not the way to do business. I hope we can do better and we should be meeting regularly to fix this problem. Thank you, sir. Mr. Thompson of california is recognized. Im concerned about [inaudible] your microphone. Im concerned about the inability of businesses to access relief that weve passedr them provided for in the cares act. Like other members i have received many desperate calls from Small Business owners who have encountered major difficulties applying for the Paycheck Protection Program and Economic Injury Disaster Loan Program. These programs work to help businesses survive and save the jobs of their employees. This is in part because some mainstream banks are prioritizing their client ahead of momandpop businesses who need the assistance the most. In my district one Business Owner applied to ten banks. Another owner applied at four banks and finally received a 200,000 loan from a bank in north dakota. My district is in california. They got that loan because they called it a favor from a friend who got the loan move to the top of the list. One constituent was a 42 year positive resist existing relationship was passed over. These three show even an existing relationship with a bank some folks are left out in the cold large corporations like ruth chris which are highly capitalized received funding that accelerated the appreciation of medical sba loan relief. Small businesses were not getting access to loans and many have been unable to apply before the first statute funding ran out. They must, theyst may lose her businesses and their employees priority for passing this bill will be out of a job. I respectfully urge this committee in the next legislation to close the corporate loopholes that placed Large Businesses above Small Businesses in the ppp, and reexamine the language ppp reimburses banks to ensure that they dont cherry pick loans that they process. I respectfully ask that eligibility for the ppp the extended to 501 c 6 organizations. Thank you for your time. Thank you. Mr. Thompson of pennsylvania, youre recognized for two minutes. Thank you so much and thank you to the chair, Ranking Member, all members of the committee on Small Business. I want to thank you for the opportunity to express feedback. Im grateful for the s. B. As work in recent weeks to implement ppp and deliver relief directly to millions of Small Businesses and their employees. Ive learned about working with Small Business owners. Many expressed concern of small and rural banks are in still need of assistance as funds without too many with prior relationships with the Small Business administration. Many have voiced concerns with ppp loans forgiveness specifically ive heard ppp lenders and borrowers expressing that current guidance states to further account for contingencies. Some employers are concerned with former employees who may not return in a timely manner. Treasury states to qualify for forgiveness the employer has until june 30 to restore employment and salary levels for any changes made to staff and payroll. Employers have reached out to me personally voicing under the current economy it is difficult to restore prepandemic employment. Second, someic lenders and borrowers share the concern 75 of the of the total about a ppp loan must be used toward payroll costs for the loan to be forgiven completed. This is causing confusion for Business Ownersom who borrowed 5 multiple other payroll costs for ppp interim final rule from treasury. Are concerneds that may result in a failure to have the loans forgiven. I am appreciative of the support provided by cares act for our nation farmers and ranchers are usda in sba. Many have struggled mightily in the past decade as prices have been challenging and average farm income was nearly in half. Just as prices began to rebound and trade negotiations improve, this pandemic started devastating markets as restaurants and schools closed their doors. People have never returned to the kitchen table. Im pleased to see todays legislation will ensure agricultural eligibility for the Economic Injury disaster loans and i thank you for your support and a conclusion of what you think the chair, Ranking Member and members of the subcommittee for your continued dedication to our nations Small Businesses. I appreciate your consideration forward to working together in the future. Thank you. Ms. Spanberger of virginia is recognized for two minutes. Good morning and thank you to the chairwoman and Ranking Member for providing mee with te opportunity to address the Small Business committee today. According to the Small Business administration, Small Businesses make up 95 of u. S. Businesses. The 7000 virginia business are not just a statistic in a building or sign up front. They are theti dreams of our neighbors. But right now across virginia covid19 is put these dreams in jeopardy. Yes, many businesses have found innovative ways to adapt to these challenging times but in conversation after conversation with Business Owners in my district i have heard dire concs about the livelihoods, their families and their employees. Today we are taking the right step in providing additional, robust funding to the Paycheck Protection Program. I am the first to acknowledge that there been issues with the implementation of the ppp but ii also know in this moment of crisis this assistance is to desperately needed in Central Virginia and throughout the country. Just last week i spoke with a Small Business owner in my district who said ppp has been a quote godson. Yes, that is the word he used. For his businesses and his employees. Others have called it a lifeline. It is not an overstatement to say that ppp funding is ensuring his his his his survive. Once we move forward with this additional ppp funding we should also intend to fix some of the major issues with the program, including all eligible businesses not just the banks top customers can get these loans. I also urge my colleagues to review the guidance that was put in place surrounding payroll costs in these forgivable loans. The socalled 7525 role was not passed by congress in the care act that was not signed into law by president trump. Yet the s. B. And the Treasury Department added this guidance before democrats and republicans could express our deep reservations about this onerousa requirement. The 7525 role has been overly restrictive on many businesses in my district including restaurants. The implementation of ppp has been unfair to Many American businesses and resending this burdensome requirement what about our businesses to use these loans to recover, to cover expenses related to their unique individual circumstances. It would level the playing field. And while outside this Committee Jurisdiction also want to mention two additional items we must include in future iterations of Coronavirus Responsell legislation. Our next package must include additional funding for states and localities including Rural Counties and in central virgino address the challenges caused by decreased tax revenue. They need funding for law enforcement, funding for ems and in need funding to keep the lights on and the water running throughout our communities. We cant leave our Rural Communities behind. Our businesses need local services to stay afloat individually to reopen their doors. And to give our World Business connected we need to push forward on additional funding for highspeed Broadband Internet in future response packages. Ive been vocal about this issue since i arrived in the house and Central Virginias role communities need Additional Support to build reliable access to increasingly online economy. Thank you again for holding todays hearing and i look for to working with you as we fight to preserve the businesses and to protect the workers they keep our community strong. Thank you. I would like to thank you and thank madam chair and Ranking Member, all members of the Small Business community. If theres no other comment i would like conclude this hearing by whats again thanking all my colleagues who are here today. I can hear the pain and frustration in your voice. You talk about the needs of our small firms. And i hear you and chairman of the same concerns rest assured we will do all we can do to improve the ppp and then sure that money gets into the hands of the truly small and underserved businesses. Their employees needed the most. I encourage you to work with my staff and republican colleagues as our priorities. Under unanimous consent of the members, without objection, so ordered. If the snow for the business toa come before the committee, we adjourn, and thank you very much. 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