News from the GCVCC Business Legislative Action Committee
The GCVCC sent Congressman Raul Ruiz, M.D. the following letter urging further action to assist small business during the COVID-19 State of Emergency.
The Honorable Congressman Raul Ruiz, M.D.
March 18, 2020
2342 Rayburn HOB
Washington, DC 20515
RE: Support for Legislation cancelling payment of all payroll taxes and streamlining loan programs.
Dear Congressman Ruiz,
The Greater Coachella Valley Chamber of Commerce (GCVCC) would like to thank you for supporting the Families First Coronavirus Response Act. The Chamber believes this is a start to helping our business and their employees recover from these unusual times.
The GCVCC urges you to continue supporting legislation, cancelling payment of all payroll taxes paid by employers for the months of March, April, and May. Employers send more than $100 billion to the federal government monthly in the form of Social Security, Medicare, and unemployment taxes. Collectively, these taxes add just over 15% to the cost of employing the average employee. Temporary relief from these taxes would give businesses more breathing room and operating capital to keep paying their employees and avoid layoffs.
Just as important, we encourage legislation expanding and streamlining loan programs for small businesses experiencing revenue loss from Coronavirus. The Small Business Administration (SBA) disaster loan program for those impacted by the Coronavirus should be immediately made available nationwide, eliminating the complex and time-consuming local certification processes. The SBA also should be given the authority to streamline its disaster-loan approval process for amounts below $350,000 in order to provide emergency capital more quickly. This should include removing the requirement that small businesses demonstrate that they cannot access credit elsewhere before turning to the SBA. These loans may be used to pay fixed debts, payroll, accounts payable, and other bills that can’t be paid because of the virus’s impact. The interest rate is 3.75% for small businesses and 2.75% for non-profits.
Again, thank you for your continued support of our members and their employees.
Joshua R. Bonner, IOM
President and CEO
Greater Coachella Valley Chamber of Commerce