tv House Small Business Committee Hearing on Coronavirus Economic Relief -... CSPAN April 24, 2020 2:21am-4:39am EDT
minutes. >> [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 covid-19. we have had a hard stop act once
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 nation's 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 let's 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 let's 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 he's 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 community-based 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 self-reliant 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 i'm 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 self-reliant 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 long-term
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 doesn't 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 face trials from chemicals in somerset county to the mason dixie distillery small businesses have changed course to provide hand sanitizer and other items needed by frontline responders. these men and women are not only the backbone of our economy but the hearts of our community in congress must continue to deliver on promises for them i thank you madam chair and the ranking member for your leadership and continued support in these trying times. i yield back. >> now we recognize the gentle man from colorado, chairman of the subcommittee for workforce development.
>> madam chairwoman thank you for having the session of the small business committee i am honored to be here during these unprecedented times. i have heard from hundreds of constituents from the paycheck protection program and those have been lifelines but the shortages of these programs have been well-documented. so i am pleased we are insuring there is a funding that we need also about the chambers of commerce and those that desperately need assistance the local chamber hasn't forced layoffs staff cutting hours and facing challenges with the critical mission, we have to make sure we are addressing that problem to provide funding and to highlight the small business credit support act would help these economies put more money and more small business under investment company program would we would increase the
amount of the e-itc to expand that even further to incentivize main street during these critical times. is millions of businesses receive assistance, you need to address the cybersecurity needs especially with recent developments of 8000 borrowers may have had personal information exploited from cybervulnerability. it would require the fda to report these breaches within 180 days and create an infrastructure framework to move forward to address vulnerabilities. as we all know important loan and grant programs is one of the most important goals of this committee. we've all been very concerned of largely publicly traded companies to use programs to harm our small businesses i look forward to working with all members of the committee
to address the misuse of these relief programs to ensure transparency and accountability is the nation's response to this crisis and congress is actions going forward. i look forward to protect our businesses and expand investment of the nation small business and i yelled back. >> thank you for taking the time to hold this hearing today. that nobody could have anticipated the devastation the virus caused american people especially small business centers and their employees last month through
the paycheck protection program. even though this is not perfect it has helped over 39000 small businesses to receive $8 billion of relief in north carolina as the coronavirus force congress to stay home i could visit hardwood him incorporated which is a manufacturer largest employer in anson county north carolina in order to fulfill their civic duty , they have begun the process to manufacturing ppe for frontline workers. when ppp applications first went online one would immediately file the application to receive a loan. due to the response then we cannot receive this critical funding. the pay tech on --dash
paycheck protection program everyone is working to ensure small businesses survive this crisis. however the easiest way to see this concern is begin the process to safely reopen the economy. my biggest observation is that the federal government cannot provide sufficient relief to substitute for a free and open economy. we all know this debate is raging in every corner of the nation i will continue to push for data transparency so leaders can begin to make educated decisions. however we are gathered here today to discuss how this committee can work with needed relief for small businesses. i would like to commend leaders throughout the country to step up to the plate and working with the sba and treasury to serve as conduits for the paycheck protection program. lenders did not ask but
dutifully stepped up in the time of need. lenders have been able to process loans in record time and better than any government agency. my time is expired i yield back. >> when i am proud to represent here to support the small businesses to the crisis and while incredibly important the stay-at-home warders are definitely created tremendous challenges to the paycheck
protection program and i'm glad that the house is voting today to increase the voting but it's not enough. the paycheck protection view the assistance that is to need it most not just big corporations but if paycheck protection program makes into the hand of minority and women in veteran don't businesses. i'm encouraged the ppp accept the house will vote on today specifies the 60 million for small and medium lenders and credit unions and developing presentations and that the congressional intent with the implementation of the programs
congress expanded program eligibility with fewer than 500 employees. and to severely limit and especially tribal gaming. and with those important job opportunities to pick housing and health care and other services. that's why are my house and senate colleagues for concerns and frustration. i spoke with the administrator about this. but we are making progress but a lot of work is necessary. >> so we're calling this in
response to the covid-19 pandemic and with the economic injury disaster loan and grant program with a $60 billion status by and to truly help small businesses. and to set aside necessary in the first place. and my constituent as both a business checking account and despite these long-standing relationships both of these banks refuse to accept application for the ppp loan. but how this will change. for entrepreneurs and also the
needs and then to really illegally - - legally reopened for the loan. and those funds and if you can safely reopen. and to extend eligibility to the five o one c five labor unions to ensure that workers have a seat at the table. and on those creative industries. for those that may spend as much or more to our work to
and thank you madam chair i yield back. >> the gentle man yields back. the gentle man from illinois. >> and to make a special call out to the staff that has been extraordinary through the entire crisis. i'm grateful we are having this hearing today as well employing 55 percent of american workforce is the lifeblood of our economy. also the heartbeat of local communities from urban neighborhoods across the country they make our nation work. from the start of the crisis this committee has stood up for small business with every covid relief bill starting with the first one on march 4th and will do so again today
adding additional funds. and the administrator on the call i stress the needs of the sba to provide applicants and to give the status of applications and on the very first day of eligibility and i have yet to hear back these business owners are making hard decisions today about the future of their businesses and expand their outlook. they deserve to know if they can rely in the two address the critical need for lenders and borrowers for updated guidance how ppe loans are one - - ppe on - - ppp loans are distributed. this is why the work of this committee is so critical. it is our responsibility to hold the administration
accountable for the emergency funding congress has provided i look forward to working with my colleagues to exercise the proper oversight of the sba to make sure they follow congressional intent and get funding to small businesses that is so desperately needed. i yield back. >> now the gentle lady from pennsylvania. >> i'm very grateful to be here at this very critical time. has never been more evident to me for this critical committee responsibility and the work we do here is so essential that we cannot afford to be bipartisan at this time. i'm also very grateful of you have conducted yourself with professionalism during this time. holding one - - holding virtual town halls all over the region spending time in
food banks with a real trauma this is causing come i'm grateful we have replenished many small business programs but i am worried it will be drained within days and weeks again. i'm grateful this program for agricultural businesses to be included and i look forward so all nonprofits will be included and i'm grateful we carved out time for community lenders. and those small business programs are meant to be emergency programs and are meant to address the situation for as long as it exist. it will exist as long as the virus is with us. we need to make sure we have a robust testing system develope developed, nationwide to return ourselves and communities to normalcy and this requires also our
legislation to be conducted with trigger mechanisms to establish for future opportunities to fund these programs if and when they become necessary and not continuously be authorized for the small businesses until such time we can get out of the pandemic. and to work with the body so i yield back. >>. >>. >> i would just like to say for your leadership during the process and with the circumstances and were privilege to see with the solutions economically.
and i look forward to your continued leadership. >> and now we will recognize the gentle lady. >> and to my colleagues on the small business committee i'm honored to serve during such a critical time in the nations history and appreciate all the work you have been doing to lead main street to prosperity i appreciate the opportunity to come before you today to submit on --dash with a paycheck protection program for the disaster loan program. i have worked to help many many small businesses across the district whether apple valley or the winery we've heard numerous times the implementation of ppp has been flawed and to get the relief
they urgently need. that we are facing unprecedented times for every success story at least a dozen people reach out to say they have been unable to successfully apply for a loan. the stories are heartbreaking and constituents also report getting far less money that was promised and we must fix that. i recently had a call with restaurant owners and ppp as it stands will not allow them the flexibility to achieve the goals we set for the program. and with future bills. we must also to be sure were holding the fbi on --dash sba accountable big corporations
they are not crowding that means getting more data to loan applications i'm grateful we will pass the bill today to pass the paycheck protection program and the idle program so look forward to ensure the amount and the flexibility of these funds to the small businesses. >> and to help the american dream represented in our district. i look forward to our continued work together and thank you and i yelled back. >>. >> thank you madam chair then
with the covid-19 pandemic and to see all the storefronts close down and former constituents about the incredible volume of aid they need and deserve the small businesses to find the character of our communities for the past two and half weeks i've engage with small businesses in harlem and east harlem in washington heights about the great difficulties they have to access by the care zach. and then the small businesses in my district so these thousands of small businesses are supposed to be held by this legislation are not getting any help. many of them have not seen a dime.
they got bamboozled and they are mad as hell. i am mad as hell this is a major problem for any of us intended for this to work. the actors that perpetrated this must be investigated and they must face consequences. we need to make sure the main street is bailed out just like wall street. i am glad with our package will set aside funds and to ensure that especially in new york city we need credit union institutions, micro loan vendors and to ensure the institution to involve the relief program institutions like federal savings
, neighborhood trust federal credit union in the upper manhattan to be used and trusted by constituents thank you madam chair. we must do better. we must bailout main street. i yield back. >> the gentleman from hawaii. >> madam sharon members of the committee as a former committee member i am grateful to share the profound impact of the covid-19 on small businesses. and 132,000 small businesses one for every 11 people. and also smaller than most states that employee and that small businesses employ a
majority. and those that are found in hawaii and with international domestic travel and stay at home orders with to be at home the small businesses are hard-hit by covid-19 just weeks ago the unemployment rate was one of the lowest of two.6 percent. if they are not already closed that is a lifeline to them. especially important are the efforts of the immigrant and underweight communities are not left behind they were first impacted by the pandemic and the last to recover as we
continue our efforts i urge this committee the unique needs and additional assistance. well programs provide temporary relief greater assistance will be needed to keep the small businesses and a very significant portion alive and tell the state can fully be open for business. continue to stand ready and we appreciate your efforts. the hollow. >> the gentleman from kentucky. chairwoman and ranking member thank you and with the development of the care zach. at as treasury and implement the bill. with the breach of the statutory obligations and the overreach by the eligibility rules and to the new owners of
pre-existing business owners. and that the paid lenders and processing fees of five days of loan distributions. and treasury and the fpa on - - sba has not given guidance and then to help their customers. one bank told me they are working 24 hours a day and 38 hour shifts they only took off one day on easter sunday. the story is not unique but shared with small community lenders across the country that must be compensated for their work as directed by the statute just as treasury and the sba and then the existing criteria that congress does not contend to exclude. and that provides downstream
benefits to their communities. some horse tracks are ineligible for paycheck protection program loans express these concerns and continue to voice my concern for local horse tracks we are hopeful it will align its guidance with the criteria and finally one of my constituents was denied alone because he purchased after february 15. it must be operational. but that the business itself must have been in operation prior to february 15 regardless of ownership at the time. despite repeated request and i appreciate the opportunity. >> the gentleman from california is recognize. >> and the thank you for
allowing me this opportunity to speak behalf on small businesses in my district. are dealing with the economic consequences of the pandemic and then to help small businesses survive this crisis. and with that disaster loan and i have heard from those in my district from the economic relief programs. and large companies and to provide strong oversight additionally those eligibility requirements from receiving federal support this includes local chambers of commerce and trade associations like his real estate professionals that
provide underserved businesses i urge the committee to expand ppp eligibility and these organizations ensure further i have serious concerns and during this crisis. accessing capital with english as a second language and then to prioritize ppp loans and those under the role markets and that is is distributed in multiple languages and then to provide more certainty and the initial ppe and we need to
establish automatically the mechanisms so we do not keep lurching from crisis to crisis. and is home to many small businesses and with that i thank you for this time to testify in front of the committee and now the gentle man is recognized. >> sense the establishment of the ppp i have heard from countless constituents small business constituents and
owners and then difficult to navigate. and not receptive to their needs and with program funds and in response to these revelations and with that future funding of ppp loans set aside specifically for the truly small business, mom-and-pop of nation and i was pleased to see my recommendation of today's funding package to set aside funds for small community banks and credit unions which have a good track record to get money into the hands of the businesses that need it most.
so as we move forward we have to find better ways to ensure local businesses get the help that they need during this time or any future crisis. i working on legislation that a portion of ppp funds for any similar program go to small businesses. and the sole proprietors during this time of crisis to engage in local charities and learn these leadership lessons. let this be there for them. and for so many years and i appreciate that very much. >> the gentleman yields back.
>> thank you for giving me the opportunity to show what's happening was small businesses in my community. i been holding calls with a telephone town hall to gain a deeper understanding of what is happening on the ground as we confront the coronavirus pandemic. the ppp or paycheck protection program was established as a quick infusion of capital for small businesses directly affected by the pandemic i have heard from many from those who have yet to receive their loans from the sba even after being approved. and then regarding their application status. and that it is approved by the house and that funds are
distributed in a timely manner to provide communication throughout the process. another issue many have raised is the lack of flexibility and that spending ratio 75 percent of the loan must go to payroll cost this does not work for businesses because they have fewer employees than others. in the coronavirus package should include a remedy for those that apply for ppe on - - ppp loans that need flexibility. it has been sickening to see that small businesses like those in el paso have been placed in the back of the line of publicly traded companies
have been put to the front of the line. they are the backbone of the local economies and is simply unacceptable. to impose stronger restrictions on who can receive and to ensure and then thank you for your incredible leadership in the unprecedented crisis we are all grateful i yield back. >> the gentle lady yields back and the gentleman from texas i'm sorry from north carolina is recognized for two minutes. >> thank you madam chair. and these businesses are tightly knit and to force to
make the agonizing decision because to make this all the more tragic those economic variables that are forcing their hand that are beyond their control. and i vote to provide more than $300 million of additional funding for paycheck protection program. and then to reopen the economy. this also listening to medical experts and he spent weeks on the phone with small business owners who don't know how they will pay their workers to
remain indefinitely shut down. and that if the shutdown continues we have the gears of the economy moving again to devastate the entire american workforce for years to come. and then to kick off the great american come back thank you again for the opportunity to testify today and i yield back. >> the gentleman from california is recognize. >>. >> and to serve the underserved committees with that assistance that they need and not turned away by big banks the 34th congressional district is by the economic destruction caused by coronavirus too many talented artist with theater industries to thrive like self-employed
individuals with the pandemic insurance and if we did apply for the paycheck protection program loan they were in line last. also small businesses and nonprofits with families and women of color. and those that are co-owners that is a staple in the community for both the disaster loan and paycheck protection loan three weeks ago they had to make difficult decisions. one of many the owner of else's bakery based out of highland park. that ppp loan was turned away from the business bank despite being a client over 20 years. he didn't even have a chance to apply before the funds ran out. he is one of many.
it didn't matter if he applied the first day they became available they were exhausted before they made it into the pockets of those that needed it the most. and then to prioritize those loans on a first-come first-served basis and those with private banks are more committed to make capital assessable the paycheck protection program and health care act takes a step in the right direction for 60 billion for community-based lenders with the institutions and then to urge the committee and then direct the department of treasury to reveal who was getting the lawns and who was not. and i yield back.
>>. >>. >> and all those lessons learned it was not enacted by the house it was not enacted by the senate or the president of the united states. it was the clinton era regulation the sba promulgated to promise sba loans during regular times. and to apply the cares acted issues guidance of financial institutions that the internal regulations say you cannot
apply for a loan. but that was any small business 500 or less employees they are legally operating in jurisdictions sponsored little league teams healthcare and retirement at all those things. many of them were shut out because of this situation where internal regulations say you cannot apply. my purpose today is to suggest to the committee we need to make that differentiation between economic disaster and terms of when we pass something to say we want to reach as many people as possible and internal regulations that are 25 years old have no resemblance to where we are today. and in those lessons learns we don't have people that are turning to regulations that are very deserving but just
not under the language of the statute. i yield back. >>. >> and the committee and the staff i remember being on the phone call with your staff we pass the cares act and with all the possible scenarios i was so hopeful that we pass the cares act to get that aid for small businesses. it's called the paycheck protection program to protect the paychecks of all employees but what was not included was the exception. and there was no statutory
mandate excluding gaming from this bill but yet washington bureaucrats chose to apply regulation that was not meant in this bill. 's my office committee first of all the administration finally do the right thing and address it administratively. if they cannot do that are refused to do it which by the way it is bizarre that the bigger part of the cares pack they get to access that money i'm talking about restaurant owners, tavern owners, convenient store owners these are all employees deserving of protection. i know you understand that and i thank you for your work if the administration continues to make this exception and in my opinion that we will
address this in the next round thank you for your help. >> no matter how much money we pump out of washington at some point we have to get back to work. i'm pleased to know that the loans that have been approved they are small dollar loans and i'm grateful for the legislation to have specific funding for small banks and to process those ppp loans and as they step up to the plate. unfortunately the evidence is clear the bureaucracy is failing small businesses when
it comes to economic disaster loans. with a 10000-dollar grant was a lifeline for thousands of small businesses in my district and now in desperate need with that working for the f alabama and it appears they have only processed at most a quarter of the grant applications. the situation is totally unacceptable. today i said at a letter i sent with 103 of our colleagues.
we've asked them to breathe all of us on the idea situation and provide answers to constituents desperately need. thank you again for the time today and i yield back. >> mr. burgess for texas you are recognized for two minutes. >> i think the chair and the members of the committee for allowing me to testify. unlike anything seen in recent memory is not only infecting hundreds of thousands of americans, it has infected and affected the nation's economy. temporarily shuttering businesses to social distance is correct, but it has left numerous small businesses struggling to survive. paycheck protection program and the economic injury disaster loan program are vital and the nation's small businesses are the backbone of the economy and they do need a lifeline during this time of crisis. unfortunately in the paycheck
protection program as the economic disaster programs provided by the care act excluded 501 c. organizations that include the local chambers of commerce. within the 26th district of texas, chambers of commerce have literally worked around-the-clock taround thecloe access to these resources. these organizations need support to be able to afford their payroll and to provide essential services for their members. the ranking member was good enough to join me on the cold with my chambers locally earlier this month and this problem was delineated while he was on the cold. call. i also request the work for the affiliation .-full-stop allow more businesses with small and local branches to be able to receive assistance. some businesses employ between ten and 2 20 people and operate like a small business but are unable to receive assistance because the parent company
comprises more than 500 employees. during this time we really do need to be practical to ensure that no hard-working americans lose their job or their business. since congress moves to replenish small-business funding we must extend to 5016 and relax the affiliation rules. thank you for your attention and i will yield back. >> the gentleman from georgia, mr. carter. you are recognized. thank you madam chair and the committee for all the work you've done. i know that you have done a lot of work and we appreciated especially in supporting the small businesses across the country. the members have been invaluable resource. it's nothing short of standing up to the program to send funds to businesses in such a short
period. period. while i'm happy to report positive stories of businesses in my district, it is not without its flaws and i would like to highlight some priorities for the program going forward. first of all, assuring that they reach the communities and agricultural producers, the initial confusion about who was eligible for the program, how the loans should be calculated or just simply said adding it to the system led to a delay for the businesses in receiving the loan or missing out completely on the programs first round of funding. one of the biggest confusions that has hindered the application has been around how the independent contractors should be considered. the legislative text provides two options, small businesses can include them in their applications or the workers can apply individually. however, it says businesses should not include them. this must be clarified. the inability to get clear guidance from these loans and a
justifiable spirit of the program running out of us has been some of the biggest frustrations my constituents have had over the past months. the provisions in today's replenishment of $60 billion set aside for smaller vendors will be helpful, but we need to ensurensure the funds that fundy going to small businesses especially in america. more should be done to promote a the liquidity created by the federal reserve to encourage banks to provide loans with zero risk. wenders hitting the limits need to be aware of the resources. in closing again i want to thank the committee for your work and for the opportunity to share my district's experiences and i want to reiterate the need for congress to provide small businesses with certainty throughout this pandemic. thank you and i yield back. >> the gentle lady from virginia, you are recognized for two minutes.
>> small businesses are the backbone of my district [inaudible] thank you, madam chair. small businesses are the backbone of my district as people employed account for more than half of all employees in the district. in this time of crisis, more work must be done to help all small businesses. despite congressional intent, some businesses cannot benefit from the payroll protection program. sba must clarify the affiliation rules that relate to the ppp alone. for seasonal businesses, i recommend directing them to base the loan eligibility on the revenues from the same time frame last year rather than from the prior four months. i also recommend allowing businesses to deter th today fot of the eight-week period during which extended loans can be forgiven until the date the businesses can reopen. to continue to ensure access for the ppp funds, they should incentivize to ensure that customers or prohibit them from
restricting which businesses can apply for the loans. the committee should also prohibit banks from considering the size of the loan while processing application so the smallest customers have an equal shot at funding. businesses that can provide lower payroll cost is the share of overall operating cost should be allowed to use more of the phone for non- payroll costs. the change would be especially beneficial for the hospitality industries that need to pay other maintenance and overhead costs for the facilities and equipment. additionally the committee should require them to provide applicants with clear and transparent timelines for when the loan and grant applications will be processed. finally, the committee must help balance the quick distribution of the funds with the program's integrity. on behalf of the small businesses of coastal virginia, thank you for this opportunity to share these priority is with the upcoming covid-19 relief
legislation and i will submit my testimony for the record and yield back. >> the gentle lady yields back and the gentleman from utah. >> thank you madam chair. this is the opportunity of the members of the committee. this is an unprecedented time in the nation's history and many of the small businesses across the country are experiencing unimaginable losses due to no fault of their own. small businesses are the backbone of the entire economy as a matter of fact they make up over 90% in my district. as a former small-business owner, i have a soft spot in my heart for their courageous entrepreneurs who make constant sacrifices in order to grow the businesses and economy. ultimately, when this is all over i don't believe that it will be the government that saves us. i believe it will be our small businesses. the recently passed out pumped billions of dollars into the economy and the small business s getting over 21,000 utah businesses over 52 500 use critl
health and an important time. despite this video we will vote on later is critical to delivering the resources to the parts of the country and economy that are currently on life support and i'm grateful to be here in washington, d.c. with you and my colleagues to vote for the legislation to help our small business owners identities. thank you and i will deal back the balance of my time. >> you are recognized for two minutes. hispanic thank you madam chair and members of the committee. the economy is the star running back. they both scored touchdowns on main streets across the country creating over 60% of new jobs in our private sector. as we work to contain the spread of the virus and save lives, the
star running back for getting tackled behind the line of scrimmage. the federal government should do some blocking and that is why they act included i think the committee for its leadership in the program. these programs have a rocky rollout and clearly more funding is needed. i believe there is nothing to lose because the businesses are making decisions right now about whether to hunker down and whether or not this or to fold the tent and that's why i introduced the bipartisan paycheck protection program to nearly triple the funding in the ppp and to extend the program duration. our businesses need certainty and breathing room to help build demand. my bill will ensure that every qualified small business is able to access the critical assistance needed to maintain the workforce and cover basic operating costs for the duration of the pandemic including the ability to get more assistance
should times continue. we also need to think about what it means if they can't reopen in two months. we can't just think about the next play that we need to know the call in multiple situations and that is why the federal assistance should build an automatic triggers to kick in if economic conditions remain by your and provide additional help when needed. we need a game plan for those facing challenges now. that also includes stabilizers that works quickly and automatically to get help where it is needed and when it is needed. it's time for the strategy to help small businesses thin thinf it as main street beast mode to empower them to score the points that the economy will desperately need. i hope the committee will consider the act as a part of the plan. thank you, madam chair. >> the gentleman yields back. the gentleman from indiana is recognized for two minutes.
>> [inaudible] >> i'm glad congress has come together on a bipartisan agreement to replenish relief funding for small business. the health and safety of the hoosiers and all americans is and will remain my top priority. like all of us here today we've been hearing from small businesses we've been hearing throughout the pandemic and across the country. today i want to address property owners are not receiving what they need. with customers sheltering in place, landlords in my district in the nation wide are facing a catastrophic revenue collapse that will create lasting damage in the communities and on the property tax revenues the giant
retailers that kept her doors ts open to provide essential services are not paying their rent. retail stores they run the town center is into strip malls that housed the stores. the government has forced stores and malls to shut down and many landlords are generously forgiving rent to the suffering small businesses but the property owners are also financially suffering. we are on the brink of defeating the virus but when the country reopens, will there be stores to open back up. my colleagues on this committee, we must ensure the landlords are nothat landlordsare not forgotts process. there are many who currently own buildings with no paying tenants and they have major issues looming. there are several companies like that in the sixth district and across the hoosiers state.
as 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 god bless all and i pray everyone stays safe and i will yield back. >> the gentleman from colorado you are recognized for two minutes. >> thank you for your leadersh leadership. it's provided some red-faced struggling small businesses my district. several of the provisions of the numerous businesses i my distrit including startups, seasonal businesses in mountain communities and restaurants across colorado from accessing the critical fun is.
extending to longer than eight weeks so that it reflects the stay at home orders for providing flexible and personal businesses with low labor cost for unfairly disadvantaged by the rule promulgated by the sba. a huge issue in the mountain communities and resort areas that i represent. also, providing flexibility for the seasonal small businesses with 20 period to recover when the public of emergency is past. i represent breckenridge, winter park, some of the best communities in the country and they've been hit tremendously hard by this emergency. illuminating which representative lee articulated earlier today from the great state of nevada. the wall stree"the 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 that we can ensure that taxpayers know how the funds are being spent and stop some of the abuses we have read about. again, i think the chairwoman and ranking member for their leadershileadership in these trs and i appreciate your consideration of the proposals. >> the gentleman yields back. >> thank you, madam chair and ranking member. all members of the committee for your hard work in action. it's been a critica critical lio millions of jobs and helping countless small businesses we have already 26,035 loans approved worth more than $5.1 billion that has been essential. a small businesses are the backbone of the economy as we all know and as we added this additional funding for the paycheck protection program
today, we are going to have a lot more businesses. three ideas very quickly that we hope will consider going forward. i want to associate myself with the remarks of congressman a few moments ago. we do have a catastrophic revenue collapse and many landlords and property owners who didn't have any relief and they have been crying out for help and i think some of it is very well deserved. and the chambers of commerce as you know they are the organizations left out of the ppp and i believe and i know you do the local chambers are going to be critical players as they begin to rebuild the economy they are the ones that are going to help plug this back in and help small businesses so they need some regard and finally, the last idea, it's been mentioned a couple of times and others have said it we need some flexibility i think on the backend of this for the repayment of this. there are some businesses who are not having employees come back to no fault of their own and i think that we need to give them do difference on that. we can separate the ones that are come up the ones that are
doing what they showed and intended off be given back. i'm delighted to work with you. thank you for the opportunity to speak today coming and than, anr your work. >> the gentleman yields back. the gentleman from virginia mr. griffith recognized for two minutes. >> [inaudible] thank you so much for holding the hearing today. small businesses throughout the country have seen the revenues become nonexistent in a matter of days due to the workers and stop the spread of the corona virus. the paycheck protection program has allowed many small businesses to stay afloat and mitigate some of the layoffs and revenue losses. though there were some technical problems early on, i was surprised at how quickly the treasury was able to move. by april 11, i was hearing from businesses across my district that they were getting the funds that they had applied for.
the economic program hasn't been nearly as successful even though in the first test in february we added additional money to help fund the program. i've heard numerous complaints from those in my district of the past few months who have yet to receive those funds and they don't know the status of their application. i would urge the committee to investigate the reasons for the delay on this program and i would also urge the committee to assess the feasibility of the lenders to carry out the program as well. one of it's been a success i'm afraid thai amafraid that it coe to nowhere. while many businesses have been able to give their employees to stay open without at least beginning to reopen the economy before the end of the eight-week period, to bridge the congress has provided will collapse or leave the business is out on the end of the bridge with nowhere
to go. and many of the case i cases clg the doors forever. just a few examples from my district where i've been out and about the guy that does the oil change on my car says his business is only 45% of where it was before. one of the local fast food restaurants has lines in the drive through way back. even though it looks like they are being successful, their business is sold by 55%. so, i would have to agree with my colleagues have asked for some flexibility on the repayment. and i would also have to say that while things are happening and some things have been pushed off, the real estate tax on the personal property tax and the business license tax all have to be paid at some point and get the businesses don't have the revenues to the anticipated. >> the gentleman yields back and they will recognize the gentleman from new jersey.
>> thank you, for the opportunity to testify at the payment protection program. the luria is an important necessary program to keep the business is alive and employees on the payroll. i don't need to tell you that the rollout of this program and many parts of the country has been a disaster and it is difficult to fully capture the level of fear, frustration and uncertainty that they are feeling right now. they are also just plain ticked off when they read that the national steakhouse chain made off with $20 million in favorite bank customers who didn't need help nearly as much as they did a concierge service while they wait on hold for hours day after day hoping for some small piece of news. i am delighted that we are setting aside money for the community banks now. but i am livid that the senate and the administration refused
to consider a single change to the program to ensure the banks treat all of the customers with equal respect. i am angry that some of us were accused of playing politics because we wanted to fix the program before putting more money into it. we all know that it's going to need more money again soon, and i believe it should be fully funded for the duration of the crisis but wha let's do better n that. before we add more money to the ppp, let's add rules that prevent the big companies with access to their capital from gobbling up loans that should be going to truly small businesses. the with four or five employees competing against the company with four or five. what the eligibility requirements to ensure the program is only open to businesses such debate could actually at risk of going under and it's without saying they
should not be writing the rules. we should be. they have to be made to understand that they have been drafted just as soldiers and the wain thewar or drafted for thise they are agents of the american people acting in our interest of their own. it would look like that in the 1930s. small businesses are digging deep into th to do right by ther employees the rest of us need to step up and have their backs. thank you madam chair. >> the gentleman yields 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.
they've been simply better by the combination of unbelievable market volatility and price declines. we've 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 i've outlined in this letter to the speaker into to the republican leader and i hope that it can be added to the record of today's proceeding. thank you for this opportunity. >> thank you. the gentleman yields back. >> thank you madam chair and all of you for being here today. i'm not here to complain, i'm
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 america's small business communities. they distributed $250 billion in loans and grants support to small businesses before the treasury was able to get 1,200-dollar 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 can't tell you how many businesses i've heard from often calling up an emotional state saying thank you.
i've 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. that's what the government is supposed to do and that is what you're 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. i'm also pleased legislation was small and medium-sized firms which are over my district to take advantage of the program and there was a well-done 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 at-home employees which is very important. and with that, madam chair, i would yield. >> the gentleman yields back. the gentleman from pennsylvania, you're 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. there's got t to be guardrails t up on the program to prevent what we have seen in pennsylvania which i'm 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 isn't the congressionl intent of the act program. we've 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,
risk-based and backstop. there are a lot of industry trade people out there trying to say this is not a problem, they don't 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. that's 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. let's 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 don't need them. >> the gentleman yields back. >> the gentle lady from washington, you're 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 long-standing 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 first-come first-served defense. i've 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 haven't heard about their application and the first possible day they use the local bank and they haven't 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
the committee will come to order as a small-busines 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 small-business 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. i'm 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 didn't 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 couldn't 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 pennsylvania's 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 small-business components of our covid-19 response in pennsylvania's 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 small-business lenders. we had hundreds of people on the call and found the information was helpful in the process for applying for small-business
relief. one of the questions we've received is how the programs apply to the agricultural community. while fighting forms have been able to access paycheck protection benefit, i'm 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. i'm 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 they've 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 flamingo's 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. i'm 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 they've already te input keys and they've 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 won't 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 semi-afraid. 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. you're 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 doesn't 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 i'm hearing in my district, i cannot tell you, i can't 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 michigan's 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 hard-hit 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 cafés, restaurants, greenhouses and one companies, hair salons and shops have had to close and sharply reduced their business activity we've 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 i've 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 minor-league 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 committee's work helping our struggling small businesses face this unprecedented pandemic. i testify today for new jersey's 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. it's 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 10,000-dollar 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 it's 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. it's 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
women-owned businesses haven't gotten an equal share of the funding either. so while i'm 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 i'm 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. i've written to be able to seek clarification on this issue and was told by the administration's liaisons that they are working on it. meanwhile, i've 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. i'd 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, i'm working around the clock with small businesses and the 25 beautiful poems i've 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 small-business owners. we must orient our policymaking towards the long-term economic viability in our new scientific reality. we are not fans in charge as we would like, but i'm 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 state's 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
they inherited alive. we have to change our approach and get our businesses back up and running we have to start the economy we've got to get people back to work and if we continue to have programs they have to function and my colleagues previously had talked about in my friend spoke earlier the extent the ppp program is not functioning the way it needs to work. because we pay people more to not work they on work that undermines the ability of businesses to get the benefit of a forgivable loan and congress will have to meet we should be here every single day until america is back. we can allow that eight year
requirement we're asking businesses to take a gamble if you have to repay it in two years hopefully it will be forgiven because of unemployment insurance pays people more. that's our way to do business. mr. chairman we should be meeting regularly to fix the problem. >> you are recognized for two minutes. >> your microphone is not on. >> i am concerned about the inability of businesses to access relief that we pass for the cares act we have received
many desperate calls from small business owners who have encountered major difficulties for the paycheck protection program and the disaster loan program they help businesses survive and save the jobs of their employees in part because some mainstream banks are prioritizing ahead of mom and pop businesses who need the assistance the most and in my district one applied to ten banks another applied at four and finally received a 200,000-dollar loan from a bank in north dakota. my district is in california. they got that loan because they called in a favor from a friend who got the loan moved to the top of the list. one constituent has a positive existing relationship was passed over. these stories show even with the existing relationship with the bank some are left out in
the cold some corporations which were highly capitalized received funding that accelerated the sba loan relief. small businesses were not getting access to loans and many have been unable to apply before the first batch of funding ran out. they may lose their businesses the priority for passing the bill will be out of a job. i respectfully urge in the next legislation to close the corporate loopholes that placed large business above small business with the ppp to re-examine the way in which ppp reimburses banks to ensure that they don't cherry pick loans that they process. i respectfully ask to the five o one c six organization. thank you for your time.
>> you recognized for two minutes. >> thank you to the chair and ranking member to share feedback to small business owners i am grateful for the sba's work to implement ppp directly to millions of small businesses and employees i have learned a lot in the small rural banks are in need of assistance as funds went out to many with prior relationships with the sba. many voice concerns with ppp loan forgiveness specifically the lenders and borrowers expressing to further account for world contingencies.
and with former employees and then to qualify for forgiveness until june 30th and for any changes made available. and under the current economy is difficult to restore pre- pandemic employment. they do share the concern is 75 percent of the total ppp loan must be used to payroll cost for the loan to be forgiven completely. and with that payroll cost in the final rule for the treasury. finally i'm appreciative of the support provided by cares in many have struggled
mightily and the average farm income was nearly half and just as prices began to rebound this pandemic as restaurants and schools close their doors 50 percent of all males were eating in restaurants so i am pleased to see today's legislation for the economic injury disaster loan thank you for your support in conclusion i what you think the chair and ranking member and members of the subcommittee to the nations small businesses and i look forward to working together in the future. >> good morning thank you to the chairwoman and the ranking member for providing you the opportunity with the small business community the sba
make up 99 percent of virginia's businesses they are not just a statistic but the dreams of our neighbors right now, 19 put these dreams that they have found ways to look at those challenging times to have conversation of business owners in my district to hear about the livelihood of their families. today taking the right step with additional robust funding for the paycheck protection program i was the first to acknowledge there would be issues with the implementation of the ppp but i also know in the moment of crisis, this assistance is definitely needed in central virginia and throughout the country. and with a small business owner in my district it has been a godsend.
for his businesses and employees it is a lifeline. not an understatement to say ppp funding is ensuring the very survival. once we move forward with this funding we should also same major issues with the program that all eligible businesses not just so they can get the loans also to review the guidance put in place surrounding these forgivable loans. this rule was not passed by congress in the cares actor signed into law by president trump to get the sba a treasury department added guidance before democrats and republicans could express the preservation about the onerous requirement. the rule that has been overly restrictive including restaurants and the implementation has been unfair to many american businesses
more than the requirement would allow them to use these loans to cover expenses lead related to circumstances. and well outside the committee i want to a mention two additional items that must be included in future iteration of the response legislation. it must include additional funding for states and localities including rural counties in central virginia to face the challenges of funding for law enforcement and ems to keep the lights on in the water running. we cannot leave the rural communities behind we need them to reopen. to keep them open we need to push forward additional funding for future response. i have been vocal about this issue since i arrived in the
house and we need additional support for reliable access for the online economy thank you again for holding today's hearing i look forward to working with you as we fight for those in business to protect the workers that keep our community strong. thank you. >> thank you madam chair and ranking members if there is no other comment i would like to conclude the hearing thank you to all my colleagues for being here today. i can hear the frustration in your voice when you talk about the needs and you share many of those same concerns to improve the ppp to get into the hands of the truly small and underserved i encourage