In a letter to Congressional leaders today, entrepreneur and philanthropist Howard Schultz and more than 100 current and former prominent CEOs of some of America’s largest companies, major trade associations, and successful small businesses, expressed support for the RESTART Act – bipartisan legislation introduced by U.S. Senators Todd Young (R-Ind.) and Michael Bennet (D-Colo.). The RESTART Act would create a low-interest, partially forgivable, long-term working capital loan to help the hardest-hit small and mid-sized businesses recover from one of the most disruptive economic periods in our history.
The following is an excerpt of the letter:
“As current and former CEOs of some of America’s largest companies, major trade associations, and successful small businesses, we know that small businesses are essential to our country’s economic and social health. They employ almost half of all private-sector workers and account for 44 percent of U.S. GDP.
“Small businesses are too critical to our country’s economic strength to let fail. From retailers and restaurants to consulting firms and manufacturers, small business owners are facing a future of potential financial ruin that will make the nation’s current economic downturn last years longer than it must.
…
“At this moment of crisis, we urge you to transcend partisanship and forge meaningful agreement on an assistance package to help our struggling small businesses and, in turn, tens of millions of Americans. We believe that assistance should embrace the following principles:
• Federally guaranteed loans, at favorable terms, that will enable small businesses to transform and sustain themselves through 2020 and well into 2021. Support must last for longer than just the next two or three months.
• Businesses should have flexibility in how loan funds are used.
• The hardest-hit businesses should be eligible for at least partial loan forgiveness. Any forgiveness should be limited to small and mid-sized firms that have suffered significant revenue declines and are not publicly traded.
• Relief needs to be delivered expeditiously. Building on the existing PPP infrastructure would be one way to quickly stand up a new loan program.
• These funds must flow to all small businesses in need, particularly those run by people of color, who have traditionally had less access to capital. A portion of funds should also be directed toward strengthening community development financial institutions (CDFIs) and minority depository institutions (MDIs).
