ICYMI: Video: Rep. Cisneros Delivers Testimony to Small Business Committee Urging for Improvement of Ppp and Eidl
Statement
Chairwoman Velazquez, Ranking Member Chabot, and members of the House Committee on Small Business, thank you for allowing me this opportunity to speak on behalf of the small businesses in my district who are dealing with the economic consequences of the COVID-19 pandemic. At this moment of incredible economic uncertainty and unease we must work together - regardless of party affiliation - to help our small businesses survive this crisis.
The Payroll Protection Program (PPP) and expanded eligibility for the Economic Injury Disaster Loan (EIDL) are well intentioned and a strong first step. However, I have heard from many in my district that the rollout of these economic relief programs has caused confusion and frustration, including technical difficulties, lack of communication from certain banks, and limited access that often resulted in big banks prioritizing larger companies at the expense of the smaller businesses that truly need help. I called on the SBA to provide further technical assistance for SBA lending programs to get resources and funding quickly to our small businesses, but urge this committee to continue to provide strong oversight to ensure these programs help those that are struggling the most.
Additionally, current eligibility requirements prevent organizations that are trusted by small businesses to provide direct help and information from receiving federal support. This includes local Chambers of Commerce, like in the Cities of Brea, Chino Hills, and Yorba Linda who have been putting on webinars and pushing out information to help struggling businesses, and trade associations like the National Association of Hispanic Real Estate Professionals, that provide targeted help to minority and underserved businesses who are often struggling the most. I urge the Committee to expand PPP eligibility to include 501(c)5 and 501(c)6 organizations to ensure the economic uncertainty does not undermine their ability to serve.
Further, I have serious concerns that minority, women, and veteran-owned small businesses are at increased risk during this crisis. Business owners of color have historically faced greater barriers in accessing the capital that their businesses need to get started and operate successfully. This is particularly true for our small business owners with English as a second language. I urge this committee to direct lenders to prioritize PPP loans for small businesses owned by minorities, women, veterans, and those in underserved and rural markets in the next stimulus package and ensure information is distributed in multiple languages - from Spanish to Korean and Chinese - to reach all audiences.
Finally, I urge the Committee to advance legislation that will provide more certainty to our small businesses moving forward. The initial PPP funding provided under CARES lasted less than two weeks, and there are estimates that this next funding stream will run out within a similar time frame. We need to establish automatic mechanisms - such as those included in the bipartisan PPP Extension Act introduced by Rep. Kilmer - so that we do not keep lurching from crisis to crisis. We must provide certainty to small businesses and eliminate fears that partisan squabbling will not unnecessarily delay needed assistance.
Now is the time for swift action for small businesses. My district is home to many small businesses from a diverse range of industries, many of which are achieving the American Dream, and all contributing to our nation's economy. Every qualified small business deserves immediate assistance. I thank you again for your work to date and look forward to continuing to work with you on behalf of my constituents in California's 39th Congressional District.
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