Coronavirus Legislation Should Address Needs of Main Street Small Business

In a letter to the House Speaker and Minority Leader outlining his priorities, Pappas calls for immediate measures to help struggling small businesses and workers, including expansive small business lending, federal debt relief, employee retention tax credits, and new health care subsidies for workers

WASHINGTON, DC - Today, as the House of Representatives begins work on a third legislative package to address the spiraling impact of coronavirus, Congressman Chris Pappas (NH-01) outlined his priorities for this critical legislation, urging the House leadership to put a focus on the urgent needs of Main Street small businesses and their workers who are struggling.

Specifically, in a letter to House Speaker Nancy Pelosi and Minority Leader Kevin McCarthy, Pappas called for the inclusion of the following policies in the latest House bill to respond to the virus:

• Measures to provide liquidity and debt relief to small businesses, including cash advances and zero percent interest rate loans;
• New policies to help workers keep their health coverage when an employer is forced to close temporarily;
• New tax incentives to help prevent additional layoffs, including reestablishment of the Employee Retention Tax Credit as well as other changes to current tax law that would directly benefit small business; and,
• Support for non-profits on the frontlines of this crisis, including the creation of a new tax credit to incentivize charitable giving.

"As members of Congress, our foremost responsibility is to ensure the health and well-being of our constituents," said Congressman Chris Pappas. "The House has provided badly needed resources to combat the Coronavirus, bolster the medical community's efforts, and provide direct support to families - and we will continue to do so. Now as we work toward a third response package, we cannot turn our backs on Granite State small businesses and their workers - the backbone of our economy - who are badly struggling. Rescuing our Main Street economy should be a top priority of Congress in this package."

"New Hampshire employers want to do right by their workers, but they desperately need direct assistance from the federal government, including zero interest loans and new tax credits, to keep their doors open and avoid additional painful layoffs," continued Pappas. "Congress also needs to come to the aid of workers who risk losing their health coverage when an employer is forced to temporarily close down to protect the public. Granite Staters are trusting us to act quickly and boldly in the face of this crisis and we can't let them down."

The full text of the letter is below and can be read online here.

Dear Speaker Pelosi and Leader McCarthy:

In recent weeks, Congress has provided unprecedented assistance to American families hurt by the recent economic downtown while also investing significant resources to support the medical community's ongoing efforts to combat the spread of the coronavirus. These steps will make a real difference but there is still far more that we must do to reverse the health and economic consequences of this outbreak.

Main Street small businesses form the backbone of the New Hampshire economy, representing 99 percent of Granite State companies and employing half of our workforce. As you work to develop a third package to address the coronavirus, I write to express my strong belief that this legislation should prioritize the urgent needs of these businesses, which in New Hampshire and across the country have been hit hard by the current health crisis.

Specifically, to be effective in blunting the most pernicious effects of the coronavirus on Main Street businesses and workers, I believe the upcoming legislation should include the following:

Measures to provide much-needed liquidity and debt relief to small businesses – Small businesses in my state need a direct cash injection to help keep their doors open and meet their ongoing obligations. Consistent with legislation I am introducing in the House, at least $250 billion in Economic Injury Disaster Loans (EIDL) should be provided to affected businesses on the most favorable possible terms, including a zero percent interest rate. In addition, qualifying businesses should be eligible to receive an advance on any loan of up $15,000 that need not be repaid. Further, the Small Business Administration (SBA) should be empowered to forgive debt and defer payments on existing federal loans.

New policies to help workers keep their health coverage – To ensure that workers can maintain affordable health insurance coverage when an employer is forced to close temporarily, Congress should extend Affordable Care Act exchange subsidies to individuals enrolled in COBRA or equivalent coverage options. The legislation should also include safeguards to prevent Americans from being forced to repay health insurance subsidies as a result of income fluctuations over the next year.

New tax incentives to help prevent additional layoffs – New Hampshire employers want to do right by their workers but they need our help to retain staff and avoid painful layoffs. The Employee Retention Tax Credit, which has been implemented by Congress in other emergency situations, would provide a temporary retention credit for businesses that continue to pay wages to their employees despite being shuttered because of the virus. This is a sensible step that could help to stem job losses until economic conditions improve. I also support changes to current tax law that would make it easier for small businesses to write off investments in improvements in order to reduce their tax liability, including by making changes to Section 179 and by correcting the so-called ‘Retail Glitch."

Support for non-profits on the frontlines of this crisis – Charities and other non-profits, both in New Hampshire and across the country, are playing a critical role in the fight against the coronavirus. Unfortunately, periods of economic difficulty also tend to coincide with a reduction in charitable giving. To ensure that nonprofits have the resources they need to continue their indispensable work in our communities, Congress should establish a temporary refundable charitable tax credit to encourage contributions to these organizations.

Thank you for your attention to these requests. Again, I strongly believe a Main Street rescue plan should be at the center of the next economic stimulus bill that the House considers. At this perilous moment for our country, the American people are trusting us to put politics aside and to act boldly in the face of an unprecedented health crisis. We can't let them down.

Sincerely,

Chris Pappas
Member of Congress