'The specific targeting of these 'micro-businesses' is intended to ensure that smaller entities aren’t excluded from much-needed stimulus...'
A new bill from Sen. Kamala Harris and Rep. Ayanna Pressley aims to help fix this disparity:, which was shared exclusively with Vox, would allocate grants of up to $250,000 to businesses that have fewer than 10 employees.
, the design of the program — which is open to businesses with 500 employees or fewer, as well as large hotel and restaurant chains — still means smaller businesses have missed out. “For the millions of micro ... and minority-owned businesses left out of the Paycheck Protection Program or shuffled to the back of the line, the Saving Our Street Act provides a critical lifeline,” says Amanda Ballantyne, the executive director of Main Street Alliance, an advocacy group for small businesses that supports the bill.
These thresholds are intended to target the aid explicitly at a swath of neighborhood businesses that may need it, a Harris staffer tells Vox. According to Awesta Sarkash, the government affairs manager at advocacy group Small Business Majority, more than 80 percent of small businesses, and the average annual revenue of those with less than 10 employees is about $1 million or less.
As part of the application, businesses also need to demonstrate that they’ve experienced a 20 percent month-over-month gross revenue decline since February 15, 2020, and commit to maintaining health care benefits for their employees. Businesses aren’t able to use these grants to pay for salaries over $100,000, and they’d still be eligible for the grants if they’ve received a PPP or EIDL loan — as long as the money is used for a different purpose.
Given the immense demand for both loan programs during the current economic downturn, there are thousands of small businesses that could still need the financial support once the funding for these efforts runs out again.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Sen. Rand Paul won't wear mask, says he has immunity to coronavirus despite lack of evidenceSen. Rand Paul said since he already had coronavirus, he could not contract it again or spread it to others — claims that experts say are still unproven.
Read more »