This statement from the Mount Vernon Lee Board of Directors has been sent to Congressional Don Beyer, Senator Tim Kaine, and Senator Mark Warner to urge action on help needed now for small businesses.
The Covid-19 pandemic has placed unprecedented
new strains on our local businesses as they try to keep their doors open and
serve the community.
Congressional action is urgently needed for local businesses to successfully navigate this on-going
situation and Mount Vernon Lee Chamber has reached out to the Virginia Congressional delegation for small businesses support during Covid-19.
Congress should allow small businesses that continue to
suffer clear economic losses due to COVID-19 to apply for a second Paycheck
Protection Program (PPP) loan. Streamline and simplify the PPP forgiveness
process by forgiving small business loans up to $150,000 automatically. Allow businesses that were unsuccessful or failed to apply
during the first PPP process to apply now.
Federal liability protections are essential for businesses. Shield small business owners from liability
for Covid-19 absent evidence that the business willfully failed to develop and
implement a plan to reduce the risk of COVID-19 to customers and other third
parties and that such failure caused the injury.
An economic downturn is not the time to place new regulatory requirements on business such as the “beneficial ownership” mandate under consideration as part of the National Defense Authorization Act. This has been a controversial idea and a new study?shows that a beneficial ownership mandate would cost small businesses, with less than 20 employees, $5.7 billion in new regulatory costs and add an additional 131.7 million hours of paperwork. Now is not the time to place such new burdens on businesses.
Congress intended for PPP expenses to be deductible as ordinary business expenses and then the IRS issued regulations negating that intent. Congress needs to clarify their intent and also allow
small business owners to use both PPP and the Employee Retention Tax Credit
(ERTC) by improving interaction between the two programs. Provide targeted tax
relief to assist with operating expenses, reopening supplies, and personal protective
equipment.
Reform unemployment insurance by prohibiting unemployment insurance compensation from exceeding an employee’s prior wages. Unemployment compensation should not create unintended consequences for both employers and employees.
As COVID-19 continues to disrupt our economy, small businesses need to have resources and protections to move forward during this health crisis. Congress needs to listen to business and respond to these concerns for the economy to recover.
See Letter to Congressman Don Beyer
