L.I. congressional leaders unite behind small businesses

The Small Business Administration, Treasury Department and banks should be held accountable if lending institutions focus only on larger businesses when approving Payroll Protection Program loans, said a bipartisan group of Long Island congressional leaders on April 24. Meeting on the video conferencing platform Zoom, they said that priority should be given to "small" small businesses seeking loans of less than $150,000. 

"There are a lot of smaller small businesses in the U.S. and most have less than 20 employees," said U.S. Rep. Tom Suozzi, a Democrat from Glen Cove. "We have to send a clear message to the banks that we're watching. They need to help the mom-and-pop shops, the plumber, electrician, doctor and dentist. And we need the Treasury Department and Small Business Administration to help get that message across."  

President Trump signed a new stimulus bill on April 23 that includes more than $300 billion in federal guarantees for PPP loans, which must be used to keep employees on the payrolls of small businesses. The SBA would forgive the loans if all employees are kept on the payroll for eight weeks and the loan money is used for payroll, rent, mortgage interest or utilities. A new stimulus bill was needed because the initial of  $349 billion for the program ran out. 

Suozzi said that the average loan amount from the first stimulus package at the 15 larger banks was $515,000, meaning the big borrowers received the loans and not the smaller business.

U.S. Rep. Peter King, a Republican, said the smaller businesses need relief now. "Or there won't be any small businesses left," he said. "This is a natural disaster. We have to stand together on this as New Yorkers."

U.S. Rep. Kathleen Rice, a Democrat, agreed, adding that local retailers have told her that they are worried they will not survive. 

One of Trump's vocal supporters, U.S. Rep. Lee Zeldin, a Republican from Suffolk County, said the government needs to step up to help the smaller businesses. "To my colleagues who think there is nothing left to do, this isn't the time to walk away and declare bankruptcy," he said, referring to a suggestion made by Senate Majority Leader Mitch McConnell. "We need to make sure the state and local governments get through this."

Big banks should focus their attention on the smallest of businesses, said U.S. Rep. Gregory Meeks, a Democrat, noting he is working to make sure they do. "Despite who is in the cue, if you see a small business with 20 or less employees, push them up," he said. "We earmarked $60 billion to go to community banks and credit unions because they have the pulse of small business to make sure they can apply for loans."

Of the roughly 67,000 loan applications, 27,000 had been approved as of April 24. Rice said non-partisan oversight was needed moving forward.

Then Zeldin warned businesses that do not need the loan to not apply, adding that they will be shamed if they do. "If you are flush with cash, if you are an individual who is sitting comfortably and wealthy — this is not a moment in time for you to be asking what your country can do for you to get through the pandemic," he said.   

Payment of the loans should be flexible, Suozzi said. He predicted that when restaurants reopen, they would probably only see 30 percent of their business return. "They will need flexibility on paying back the loan," he said. "Can we make money available with a much lower interest rate at maybe 0 or 1 percent?"

The congressional leaders are united on these issues, Suozzi said, and "want to fight for the little guy — the smallest businesses. We will get through this if Democrats and Republicans are united like we are here."