CAMEO STATEMENT: Federal Cuts to State Small Business Credit Initiative Harmful for Small Business Recovery
San Francisco, April 6, 2022—For many small businesses, especially in under-resourced communities, the economic effects of the pandemic are not over. They face one new shock after another, from new variants and supply chain challenges to inflation and labor shortages. And with more new businesses forming, we should be investing in the entrepreneurial ecosystem, not cutting it.
That’s why we are shocked and concerned that the U.S. Senate has proposed defunding its commitments to small businesses in order to fund the Bipartisan COVID Supplemental Appropriations Act.
While we are in full support of the Act’s initiatives for COVID therapeutics and antivirals, we stand in firm opposition to the Act’s proposed funding mechanism of eliminating more than $5 billion for small businesses. That is,
$2.14 billion from the State Small Business Credit Initiative (SSBCI), plus $200 million in technical assistance funds
$1.93 billion from the SBA’s Shuttered Venue Operators Grant (SVOG) program
$900 million from the SBA’s Economic Injury Disaster Loan (EIDL) program
Taking money from small businesses – money that entrepreneurs and states are counting on – threatens our already shaky and unequal economic recovery.
If enacted, these cuts will be felt hardest among the nation’s most vulnerable small businesses, including those owned by women, people of color and immigrants who have been disproportionately harmed by the pandemic and excluded from the recovery.
Turning our back on small businesses now would be a grave mistake.
STATUS OF BILL
Senate’s $10 billion bipartisan COVID bill hits roadblock – H.R. 4373, the Bipartisan COVID Supplemental Appropriations Act, has hit a roadblock on passing the Senate. Senate Republicans are requiring a vote on an amendment to extend a public health policy used to control the flow of immigration at the US/Mexico border during the pandemic – something many Senate Democrats oppose. This snag makes it likely the Senate will instead vote on the bill after they return from Easter recess.
TWEETS
YourORGNAME strongly opposes reducing #SSBCI funds by $2+ billion and $3 billion in cuts to other programs. We support additional funding for COVID relief, but not on the backs of #smallbusinesses. @AlexPadilla4CA @SenFeinstein
Reducing #SSBCI, #EIDL, and #ShutteredVenueGrant funds is bad for #smallbusiness, bad for jobs, and bad for America’s economic recovery. @AlexPadilla4CA @SenFeinstein
#Smallbusiness owners are the lifeline to California’s economy, the 5th largest in the world. Don't cut #SSBCI #EIDL, and #ShutteredVenueGrant funds @AlexPadilla4CA @SenFeinstein
CDFA Letter to Treasury:
Take Action
There are immediate steps you can take to advocate against cuts to the SSBCI program.
1. Read the Letter to Treasury
2. Sign-on to the Letter
3. Reach out to your SSBCI contacts at Treasury to express concern about the proposed rescissions and request a response to the recommendations submitted by CDFA and the SSBCI Coalition. You can attach or link to the Letter to Treasury for reference.
Time is of the essence as we anticipate a full vote on this proposal before the end of April. All interested SSBCI stakeholders are encouraged to voice their concerns to Treasury now. CDFA is already working with key Congressional offices to address this issue. Additional information about contacting members of Congress will be provided in the future should it be necessary.
