Do you own a small business or know someone who does? Small businesses are the engine of growth of the American economy. Most new job creation comes from small businesses. Innovation comes through small businesses.
The government is taking from small business this is compensation not a bailout
Small businesses are not and never will be too big to fail. They fail all the time. However, they don’t often fail because of government inflicted forced shutdown. The government is taking away their right to operate. When the government takes your stuff you have a constitutional right to compensation. Calling this a bailout is crap. This is compensation for the harm being done by the government.
In constitutional law, taking is when government regulation limits the uses of private property. The government is guilty of taking when: It deprives property owners of economically reasonable use. Or when it reduces or takes the value of their property. That certainly is occurring.
The government is shutting and or restricting business. It is doing this to such an extent it is depriving them of utility or value of their property. The government does not have to formally take the title of the business to have harmed them. The government is constructively taking small business. It owes compensation.
The PPP is broke already… no money left…
The federal program backstopping small businesses during the coronavirus crisis is the Paycheck Protection Program (PPP). As it stands today PPP expects to run out of funds yesterday. That would be Wednesday evening. The main reason for this is a Senate stalemate over refilling its coffers. What has your senator done to help small businesses in this time of government inflicted shutdown?
The Paycheck Protection Program (PPP) has approvals on loans to over 1.4 million small businesses. Small Business Committee chairman Marco Rubio wrote this leaves 700,000 applications in “limbo.” See this Rubio Tweet
They cannot receive approval because there is no money. We had money for refugee resettlement and NPR. We had money for the Kennedy Performing Arts Center… etc., but not enough for small business. Shameful, this is just shameful.
Partisan politics as usual
Senate Republicans attempted to refuel the PPP last Thursday. They brought forward a bill for an additional $250 billion. Yes that is on top of the $350 billion initially allocated. Democrats blocked the bill.
The Democrats then came with their own version. The Democrat bill would have added on another $250 billion for bailouts of hospitals and state and local government. So it doubles the amount and moves for further federal control of state and local government.
The result is a Democrat initiated standoff leaving 700,000 small business owners in the lurch. They are likely without the means to pay their employees. The expectation is this will hasten more layoffs, driving up unemployment. This will also further tax the states’ buckling unemployment insurance systems. That’s right it rolls downhill.
What you can do to help
Since last Thursday’s standoff, Republicans have been calling for a “clean bill.” Democrats see the rapidly depleting fund as an opportunity. They are concerned with further policy concessions. So it is time to call senators Shaheen at (202) 224-2841 and Hassan at (202) 224-3324 and ask them: Why are you driving up New Hampshire’s unemployment? Why don’t you support New Hampshire’s small business? Is it true you just don’t care about small business? That’s what your actions are saying to me…
The legislative stalemate leaves small businesses floundering without a lifeline. It is yet another example of the federal government picking winners and losers in the economy. A recent survey finds 4 in 10 have already closed their doors. Up to half of small businesses could close permanently if the crisis drags out for four months.
America’s unemployment rate is moving up. There are already over 17 million unemployment claims filed in the past three weeks. The PPP works by guaranteeing loans to small businesses which can be forgiven if the loans are spent on payrolls. The same survey found that a PPP-like program should cause small businesses to cut their work forces by just 6%, down from 40% with no assistance.
We really are all in this together
Want to see higher unemployment? Want more permanent business closures? Go ahead side with the Democrats. Withhold the PPP funding. But remember this is one of those pay me now or pay big later situation. Want more partisan politics as usual? Or is it time to get our economy back on track?
Think the government can pay everyone all of the time for everything? Let me suggest there will be no government unless somebody pays taxes… just a thought. The small business bailout fund is running dry. Don’t think about it too long. It is time to act.