The novel coronavirus outbreak will require leaders in business and government to continue to come together to help our nation deal with the pandemic, support our healthcare system, weather the economic disruption, and ensure we can come back from this crisis stronger than ever.
The CARES Act, passed by Congress unanimously and signed into law by President Trump, is the largest rescue package in American history. The U.S. Chamber of Congress worked vigorously to advance the legislation because no family should go bankrupt, no business should go under, and no industry should be left in ruins because of the pandemic. The emergency funding programs in the law will make the difference between keeping a business up and running over the coming weeks and being forced to reduce salaries, lay off employees, or shut down forever.
The CARES Act contains three important provisions for businesses. First, it delays payment of employer payroll taxes, which allows businesses to have more cash to keep workers on their payrolls. Second, it provides $350 billion in loans for small businesses. These loans will support business operations and can be converted to grants for businesses that use the money to retain employees. Third, there is $425 billion in loans, loan guarantees, and support for the Federal Reserve to shore up midsize and large businesses. The Fed could leverage these funds up to $4 trillion.
But the all-hands-on-deck effort needed is just beginning. We are pushing the Treasury Department and the Federal Reserve to act swiftly to create a robust lending facility to support loans to midsize and larger businesses with minimal regulatory red tape.
In addition, we are urgently focused on helping small businesses take the necessary steps to receive aid once lending facilities have been designated. To help them get started now, the Chamber put together a step-by-step guide to applying for and accessing loans, which can be viewed on the Chamber’s website (uschamber.com/sbloans). This graphic guide has already potentially reached millions of people on social media.
The Chamber is also hosting dozens of webinars, including with state and local chamber partners all across the country, to make sure small businesses everywhere know what kind of help is out there and how they can get it. Last week, one online town hall alone drew more than 5,000 participants.
While we work to provide fast relief to the employers and employees who are suffering, we will continue to support the businesses and workers firing on all cylinders to respond to this crisis. We can’t forget that there are millions who are working more, not less, because of the coronavirus. They are helping keep people safe and keep daily life running for the rest of us.
Returning to normal requires beating the coronavirus — and we will. We have the best doctors and scientists developing treatments, the most innovative companies scaling and distributing tests and treatments, and the best healthcare system to deliver them. We will get back to business when we get back to health.
When that happens, working with state and local governments and guided by public health officials, we will reopen our economy, put people back to work, and get back to growing.
I’m an optimist. I know we will defeat the coronavirus, because America has the will and the strength to tackle any challenge.
Thomas Donohue is chief executive officer of the U.S. Chamber of Commerce.
