NFIB in Massacusetts sends this news release
The following news release was picked up by NECN. Click here to read the coverage
Northeast Governor’s Plan: Small Businesses Want to Reopen When its Safe for Customers, Employees
Regional plan of by Governors is welcome if it’s not one-size-fits-all, if businesses can be heard
BOSTON April 14, 2020 – Governors in a handful of Northeastern States held a conference call to discuss a regional plan for reopening the economy when it’s time to lift some restrictions on the public and businesses. They later announced Massachusetts would be joining their effort. NFIB believes it is important to have those discussions now because a huge number of small businesses are in a financial crisis of immense proportions. While the business owners do want their employees and customers to be safe, a recent survey by NFIB showed most of these companies’ cash reserves could run out in one to two months making reopening not an option.
“It may be helpful to have consistent regulations among states, and it is good to know that these Governors are considering a plan to reopen the economy when the time is right, but time is running out quickly for small businesses,” said Tim Goodrich, NFIB Executive Director of State Government Relations. “Small business owners hoped the federal loans might help get them over this very difficult time, but the Paycheck Protection Program loan rollout had glitches, and now the Emergency Injury Disaster Loans have turned out to be problematic.”
NFIB says that the EIDL loans were applied for about a month ago and the money has not yet reached those small businesses that applied. The promised $10,000 upfront grant that a business could request if they applied for the EIDL loan was lowered to just $1,000 per employee over concerns the funds would run out. NFIB asks that the SBA work out these problems and get the money to those who so desperately need it immediately.
“Understandably Governor Baker’s paramount concern is the containment of the virus, but it not too early to begin preparations to reopen the state economy ,” said Christopher Carlozzi, NFIB’s state director in Massachusetts. “It is entirely prudent for Massachusetts to plan for the incremental reopening of the economy when it is safe to do so or else it may prove impossible to reverse the devastation done to small businesses that employ around half of the workers in the state and contribute about half of the state’s GDP.”
“It will be important for these governors to understand how small businesses operate and get the business owners’ input to be able to make informed decisions,” said Carlozzi. “It is in the interest of the employees, customers, and the state that these small businesses open if they can do so safely before it’s too late. The longer they remain shut down, the longer it takes Massachusetts to recover.”