NFIB

Legislation Introduced to Ease Economic Burden on Small Businesses
10/08/2001

Legislation introduced last week in Congress is aimed at helping small businesses survive the downturn the U.S. economy is experiencing in the weeks following the worst terrorist attacks in the country's history, the Los Angeles Times reports.

Last week's reports of plunging optimism among small business spurred the measures, which were introduced in both the Senate and the House. The bills are expected to proceed quickly, as lawmakers hope to strengthen the overall economy by easing tax and loan restrictions on small businesses.

"Make no mistake, small businesses are struggling to keep a footing on a slippery slope," said Sen. Christopher Bond (R-Mo.), who introduced a bill that would provide tax relief and help small businesses win contracts with federal agencies. "For months, the nation's small businesses have been struggling with the slowing economy, and the recent terrorist attacks have made their situation even worse."

In the House, Rep. Nydia M. Velazquez (D-N.Y.), the ranking Democratic member of the House Small Business Committee, introduced the Small Business Relief Act of 2001, which would allow the SBA to grant low-interest relief loans of up to $1.5 million to businesses that suffered physical or financial damage as a result of the Sept. 11 attacks. The bill would also provide extended payment periods or even complete forgiveness to businesses struggling to pay existing loans.

Not only were firms near the actual sites harmed, but small businesses across the country felt the impact. "Not a trivial amount of firms were hurt by this," William Dunkelberg, NFIB's chief economist, told the LA Times.