The recently passed American Rescue Plan (ARP) by the United States Congress aims to provide more relief for small businesses, including additional money for efforts such as the Paycheck Protection Program (PPP), and a whole new grant offering specifically for restaurants.
The new ARP earmarks about $50 billion USD to bolstering grants and loans for small businesses still navigating the economic fallout of the COVID-19 pandemic.
The relief package includes $28.6 billion USD set aside for a new program called the Restaurant Revitalization Fund, $15 billion USD is allocated to further fund Targeted Economic Injury Disaster Loan Advance payments (a.k.a. EIDL grants), $7.25 billion USD for PPP, and $1.25 billion USD to boost the Shuttered Venue Operators Grant program.
The new money in the ARP is in addition to more than $600 billion USD that’s been allocated in congressional bills since the start of the COVID-19 pandemic.
Why so much emphasis on small business?
The strength of the United States economy in recent years depends on the stability and growth of small businesses across the country.
In 2020, the number of small businesses in the U.S. reached 31.7 million, making up 99.9 percent of all business in the country.
AmChamUS believes small enterprises play an extremely significant role in the U.S. economy, and are vital to economic development and job creation.
Although the majority of small businesses hire fewer than 100 employees, they are responsible for millions of new jobs created each year.
There are currently 60.6 million small business employees in the U.S., which make up nearly half — 47.1 percent total — of the U.S. workforce.
In 2019, U.S. small businesses added 1.6 million new jobs. Companies with fewer than 20 employees were responsible for the majority of new hires, providing a total of 1.1 million new jobs.
California is the state with the highest number of small businesses. The top-5 states for the most number of small business (as of 2020) are as follows:
California: 4.1 million
Texas: 2.8 million
Florida: 2.7 million
New York: 2.2 million
Illinois: 1.2 million
California’s small business employees make up 48.5 percent of the state’s total employees, which is higher than the national average. Of the total number of new jobs created — nearly 215,000 (around 13.4 percent) — were in California.
AmChamUS supports the continued efforts to aid small businesses by the U.S. government during the COVID-19 pandemic, as small businesses in America continue to create jobs, spark innovation and provide opportunities for women and minorities to achieve financial success and independence
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