Brad Close

Opinion contributor

If Congress doesn’t act immediately, countless small businesses will not survive.

That’s the grim truth of the situation. Last Thursday, the Paycheck Protection Program — the historic small business relief initiative enacted by bipartisan majorities — ran out of money. When it did, it left small businesses across America in a lurch.

They were counting on the program to help them come through the coronavirus pandemic. Now they don’t know when, or whether, relief will come.

Lawmakers have known this would happen for weeks yet failed to act. The PPP initially contained $349 billion in partially forgivable loans to small businesses that use the money to keep their workers employed, pay utilities, cover mortgages and pay other essential costs. The rollout and implementation were plagued by problems from the start, and the Small Business Administration, which is implementing the program, continues to appear overwhelmed.

Small businesses need lawmakers to fulfill their promises

The program’s popularity is no surprise: 50% of our members have also told us they can’t survive more than a month or two without support — and for many, it has already been nearly a month. Mandatory business shutdowns and quarantines have decimated their customer base and revenue. The Paycheck Protection Program is many small businesses’ only shot to stay open.

Our organization’s research shows that 70% of small businesses applied the day the program opened on April 3. Within a week and a half, the PPP was nearly three-quarters gone, even though most small businesses are telling us they have yet to receive any money and are running into roadblocks when applying. They’re angry at the SBA and the banks for failing to come through and for the lack of communication.

To its credit, the Senate recognized the looming crisis. On April 9, the Senate tried to pass an additional $250 billion in funding, but the vote was torpedoed at the last minute. The delays continue more than a week later, risking the futures of the smallest businesses and their employees.

We need more funding to sustain our employees

Small businesses are half of America’s economy and account for nearly half of America’s jobs. This crucial part of the economy is most in danger of failing. The vast majority of small businesses have fewer than 20 employees. They don’t have an army of lawyers and accountants to process their paperwork, nor do they have piles of reserves or huge lines of credit with financial institutions to weather the crisis.

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In the past week, one small business owner told us that she has less than $4,000 in the bank, after paying her workers and suppliers. Another told us his company has run out of money to pay employees. Every day, hundreds of small businesses contact us, telling us they can’t last much longer.

For their sake, Congress needs to provide more funding for the Paycheck Protection Program — without delay. The new funding the Senate is trying to provide is a good start. But $400 billion would be better, given small business’ unprecedented needs resulting from mandates and shutdowns.

It would be even better if lawmakers directed $200 billion of that money to firms with 20 or fewer employees. The Paycheck Protection Program was established to help small businesses, yet big businesses with thousands of employees took advantage of the program, with 2% of companies getting 25% of the funding so far. This is backward, and Congress must take steps to make sure the funds make it to true small businesses.

Every day Congress delays brings Main Street closer to disaster. A coronavirus cure for small business won’t help if the patient is already dead.

Brad Close is president of the National Federation of Independent Business.