Press Releases

Eighth Congressional District, PA – This week, the U.S. is honoring its longstanding history of supporting small businesses through National Small Business Week. To mark the occasion, U.S. Representative Matt Cartwright (PA-08) recognized the vital contributions small businesses make in Northeastern Pennsylvania’s economy and recommitted to providing relief to help them get through the downturn brought on by the coronavirus pandemic.

“Northeastern Pennsylvania is home to a wide variety of small businesses, from manufacturing and agriculture, to retail and hospitality,” Cartwright said. “With more than 17,000 firms employing 60 percent of our workforce, our economy is driven by small business. But without more support, they all could be at risk. It’s important to me to fight to ensure they aren’t left behind, so small businesses and entrepreneurs have the resources they need to get back on their feet.”

National Small Business Week this year comes as the COVID-19 pandemic has devastated small businesses across the country. Current estimates list 7 million small businesses as at risk of closing permanently, with thousands of firms already having closed their doors for good since March. Small businesses help make up the foundation of the country’s economy, with over half of Americans owning or working for a small business. As the driving force behind America’s economy, it is crucial that the government take the necessary action to support small businesses as they recover from this crisis.

Last week, Cartwright held a virtual meeting with Northeastern Pennsylvania business owners to discuss their experiences with federal small business relief programs since the passage of the Cares Act in March, and how those programs can be improved in future coronavirus aid legislation. They called for more flexible relief funding and more clarity from the Small Business Administration (SBA) around the application process and loan forgiveness rules. Cartwright noted that the House passed the Heroes Act more than 120 days ago. That legislation would help small businesses through the following improvements to the Paycheck Protection Program (PPP):

• Establishing an additional set aside of funds specifically for small Community Development Financial Institutions (CDFIs), Minority Development Institutions (MDIs), SBA microlenders, and SBA Certified Development Companies (CDCs), because underserved small businesses, particularly those that are minority, women, or veteran-owned, often lack prior relationships with larger financial institutions and rely on community lenders to fulfill their financing needs;
• Creating a carve out of 25 percent of the funds to be used specifically for small businesses with 10 or fewer employees to guarantee they are fully able to access PPP assistance;
• Creating a carve out of 25 percent of the funds solely for the use of all nonprofits, no matter their size or type but requiring that at least half this amount go to small nonprofits under the 500-employee threshold;
• Mandating that any returned amounts due to the cancellation of a covered loan shall be redistributed through loans to small businesses with 10 or fewer employees; and
• Adding flexibility in the covered period for borrowers by extending the 8-week period to 24 weeks and extends the covered period from June 30 to December 31, among other provisions.

The Heroes Act would also inject an additional $10 billion into the Economic Injury Disaster Loan (EIDL) program, administered by the Small Business Administration (SBA).

This year, National Small Business Week falls September 22-24. This year, SBA will hold a virtual conference featuring events and workshops highlighting the impacts of entrepreneurs and small businesses in all fifty states.