By Todd DeFeo | The Center Square
Small businesses in Pennsylvania hold a “mixed” view of the economy after months of grappling with the COVID-19 pandemic, and uncertainty about the economy and increasing case counts are contributing to the unease.
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That’s according to the state director of a national business association.
Nationally, according to a survey from National Federation of Independent Business’ Research Center, most Paycheck Protection Program (PPP) borrowers (86 percent) spent their loan and are ready to apply for loan forgiveness. Additionally, nearly half of borrowers (49 percent) say they will likely need additional financial support over the next 12 months.
“Small business owners are a determined bunch of people, and they are making the best of the challenges every day,” Gordon Denlinger, NFIB’s state director in Pennsylvania, said in an interview with The Center Square.
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In Pennsylvania, the NFIB wants to see a limited time window liability lawsuit protection for owners who follow CDC guidelines and work to protect employees and customers from COVID. The organization would like the state to use some of the roughly $1 billion in unspent federal Coronavirus Aid, Relief, and Economic Security (CARES) Act money for loans and grants for business owners who can confirm a one-third or more loss in revenue, especially those in the hospitality sector.
“When the government orders closures and confines your ability to earn revenue, then we still do look to the government for relief, at least in certain sectors and with certain demonstrations of lost revenue,” Denlinger said.
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Denlinger pointed to what he called “high profile misfires,” including the “significant confusion” surrounding the COVID-19-mandated closure waiver request process and conflicting guidance around the number of patrons that restaurants can allow.
“We think, in terms of implementing safe spaces, you should trust our business owners to look out for their own interests,” Denlinger said. “Frankly, they have no future in their employees and their customers becoming ill. If you have a restaurant, bar or tavern, place some trust in the owner of that facility to design his layout in such a way that people will be protected, employees will be safe and customers will be safe also.”
NFIB also wants lawmakers to consider its Tax Fairness Package, including “like-kind exchange” provisions and net operating loss allowances for pass-through entities. They also want to align state and federal write-off provisions under Section 179.
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“It has been over six months from the onset of the health crisis and economic shutdowns and small businesses are still struggling,” Holly Wade, executive director of NFIB’s Research Center, said in a news release. “Owners are trying to reduce costs and adjust business operations to keep their doors open, but for many, that’s not enough. Small businesses are in danger of closing for good if they don’t get additional financial assistance.”
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