Coalition Urges the Treasury to Expand Eligibility for COVID-19 Relief Funds
Washington, DC – Today, the Family Business Coalition (FBC) released a letter signed by 10 additional small business associations and advocacy groups urging the Trump Administration to expand eligibility for COVID-19 relief funds to a broader segment of the US economy. Co-signers include the Coalition of Franchisee Associations, American Values, Hispanic Leadership Fund, Center for Freedom and Prosperity, National Franchisee Association and more. Together, these groups advocate for millions of American jobs during this unprecedented time and beyond.
Our nation is currently facing skyrocketing unemployment rates and many local economies are hanging on by a thread. In an effort to ease this burden, and keep Americans gainfully employed, the SBA and Treasury Department created the Paycheck Protection Program (PPP). However, as it currently stands, the PPP leaves a large margin of the economy out of the mix through “affiliation rules” which lumps small, unrelated businesses that share common investors into a single entity and therefore putting them over the qualifying 500-employee threshold. The FBC and its co-signers are bringing light to this injustice and urging that the COVID-19 loan programs should not leave any small business or worker behind.
The letter argues: “Simply put, any company that employs American workers should have access to relief. Many small businesses are either partially funded or wholly owned by larger holding companies and these businesses deserve comparable relief under the current small business support programs. Programs designed to keep employees on the payroll shouldn’t discriminate because of business practices unrelated to the employee.”
Parties on both sides of the aisle have agreed the “affiliation rules” do not make sense while our nation fights the economic challenges brought by the global pandemic. “In a letter written by House Republican Whip Steve Scalise and signed by 59 other House Republicans, they call upon Secretary Mnuchin and Fed Chair Powell to expand loan eligibility for companies under the CARES Act to encompass all small and medium sized businesses, without discriminating by industry.”
The letter concludes: “We are in unprecedented times, and public relations should not trump public policy. It is imperative that the government treat all employees fairly and equally in order to help fuel the great American recovery.”
The full letter is available here.
The Family Business Coalition is a diverse collection of organizations and industry groups united for the common purpose of protecting America’s family businesses across the country. FBC works to implement tax policies that help family businesses of all sizes create jobs and continue to the next generation.
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