Howard Schultz, Sheryl Sandberg and more than 100 top business executives warn Congress there will be a ‘wave of permanent closures’ of small businesses without COVID relief
- The CEOs warned of a ‘catastrophic’ wave of business closures
- They want lawmakers to provide more relief ‘quickly’
- Democrats have upped their latest relief proposal to $3.4 trillion
- Republican senators put forward a $1 trillion relief plan
More than 100 business CEOs have signed onto a letter urging Congress and the White House to come to agreement on a fourth coronavirus relief deal to head off what could be a ‘catastrophic’ wave of small business closings.
The letter, steered by Starbucks chairman emeritus Howard Schultz, comes as Democrats and Republicans are hung up over a deal that would extend expired $600 per week federal unemployment benefits.
They want to extend the Paycheck Protection Program to send a new round of loans to small businesses. Many used the program as a lifeline, while others weren’t able to qualify or didn’t apply, as millions of Americans joined the unemployment rolls amid the coronavirus pandemic.
Starbucks chairman emeritus Howard Schultz spearheaded the effort
Also signing on to the letter to the top House and Senate leaders of both parties are Facebook CEO Sharyl Sandberg and basketball great and entrepreneur Earvin ‘Magic’ Johnson.
‘By Labor Day, we foresee a wave of permanent closures if the right steps are not taken soon,’ the CEOs wrote. ‘Allowing small businesses to fail will turn temporary job losses into permanent ones. By year end, the domino effect of lost jobs — as well as the lost services and lost products that small businesses provide — could be catastrophic.’
The $600-per-week enhanced unemployment benefits expired on Friday.
House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer increased the package price tag from $3 trillion to $3.4 trillion, after House Democrats pushed a $3 trillion plan through the House.
Facebook COO Sheryl Sandberg was among those pushing for action
Signers urged action on a new coronavirus relief package
Prior relief packages have injected trillions into the economy and boosted the stock market, with just months before Republicans and Democrats face off in the November elections.
The CEOs seek loans for businesses ‘at favorable terms’ that ‘will enable small businesses to transform and sustain themselves through 2020 and well into 2021.’ They also call for relief to be delivered ‘quickly.’
The list of signers includes some who have appeared at the White House, including IBM’s Ginny Rometti, Sundar Pichai of Alphabet. Josh Bolten, a former George W. Bush administration who is head of the Business Roundtable, also signed.
The push comes as talks are putting pressure on Senate Republicans who are in tough reelection races. President Trump talked up two endangered GOP senators, Cory Gardner of Colorado and Steve Daines of Montana, at the White House today, while his press secretary touted an unemployment extension introduced by Arizona Sen. Martha McSally.