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Hello Friend,
Welcome back to my Small Business Newsletter! As we have transitioned to a new administration, I am hard at work to ensure that small businesses have a smooth path to the assistance they need. COVID-19 has radically shifted the field for small business owners and employees alike. Now is the time for commonsense solutions, not a progressive agenda that stifles opportunity for Americans.
Relief for Small Businesses and Non-Profits
In 2020, South Carolina businesses received 67,176 loans, worth $5.8 billion. Since the start of the new year, 2,982 loans have been approved for nearly $239 million. Those numbers will undoubtedly grow as more businesses receive the help they need.
Ensuring continued support for our small businesses is the most important thing we can do for our economy right now. A number of proposals in the last relief package have begun to provide much-needed assistance.
The COVID-19 relief package contained, among other provisions:
- $325 billion in relief for small businesses
- $284 for the Paycheck Protection Program (PPP)
- Businesses previously receiving a PPP loan can apply for a second draw if they show revenue losses
- $20 billion for Economic Injury Disaster Loans (EIDL)
- $15 billion for live venues, movie theaters and concert venues
- Streamlined PPP loan forgiveness for loans smaller than $150,000
- $15 billion for Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs)
- Increased PPP loan calculations for the hospitality industry
- Expansion of PPP eligible expenses to include PPE, operational costs and supplier costs
- By increasing PPP funding, streamlining loan forgiveness, and setting aside specific amounts for community-oriented financial institutions, countless jobs will be saved and small business owners will have more security through the winter.
Local Commerce Revitalization Act
In the CARES Act, passed in March 2020, tourism organizations, chambers of commerce, and other 501(c)6 organizations were unfortunately excluded from receiving PPP funding. Those organizations are an integral part of the survival of not only South Carolina’s small businesses and tourism industry, but also the industries around the country. I worked to make sure that targeted relief would be made available for these organizations that were originally left out of federal relief efforts by introducing the Local Commerce Revitalization Act which opens PPP up to 501(c)6 and tourism organizations. This legislation was included in the December 2020 relief legislation and is crucial to ensuring those organizations can continue to provide services to the attractions and communities across the state.
Resources for the Minority Business Development Agency (MBDA)
We know that minority-owned small businesses and entrepreneurs of color have been hit disproportionately hard during the pandemic. I worked to ensure that there is a provision in the package to provide the MBDA with critical resources to help folks get back on their feet.
Also included in the COVID-19 relief package is approximately $25 million specifically for the MBDA, which provides grants to minority business centers to assist and provide guidance to all types of minority business enterprises.
Democrats’ Disastrous Wage Hike Plan
One of President Biden’s initial plans for coronavirus relief included a provision that would be disastrous for millions of workers. The nonpartisan Congressional Budget Office estimates that up to 3.7 million jobs would be lost if the federal minimum wage was artificially increased to $15 per hour. Last week, when I questioned the president’s nominee for Treasury Secretary, Dr. Janet Yellen, about her thoughts on increasing the minimum wage, I was profoundly disappointed by her response. Secretary Yellen dismissed the jobs lost as “minimal.” Ask any small business owner, and they’ll tell you what they think! You can click here to view our exchange.
As a former small business owner, I know President Biden’s call for artificially raising the minimum wage to $15 would devastate small businesses across South Carolina, many of which are already on life support because of the pandemic. It would also have the opposite of its intended effect, causing lay-offs and business closures—a trend that has already destroyed countless South Carolina communities.
We should focus on targeted aid to American workers and helping small businesses recover from the pandemic.
My team and I are hard at work for you. For more information or to contact us please visit my website. We look forward to hearing from you!
Sincerely,
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