Kabbage Encourages Emergency State Actions to Aid Small Businesses in the Fight Against COVID-19
Kabbage calls upon policymakers to allow FinTech providers to help save small businesses
Kabbage, Inc., a data and technology company providing small businesses cash flow solutions, calls for innovative policy solutions to aid small businesses during this public health crisis and uncertain economic times. Small businesses are the backbone of the American economy and are critical to our country’s continued economic success. Many are facing stressful economic choices as a result of the ongoing COVID-19 threat, but state policymakers can help slow the effects in local communities.
Real-time data from Kabbage and other industry leaders show that nearly all small businesses, especially brick and mortar stores, bars and restaurants, and those businesses that rely on foot traffic are already beginning to make difficult economic decisions. According to the Small Business Administration, companies with fewer than 500 workers employ over 60 million Americans or about 47% of the private sector workforce.
In order to aid small businesses and their employees, Kabbage is calling for swift and aggressive action by governors, state legislators, and mayors to put forth policy actions to help small businesses maximize strained cash flows, such as:
- Legislation or Executive Orders temporarily preventing commercial evictions until business returns to normal.
- Implement a moratorium on municipal-owned utility payments for small businesses or prevent the disconnection of private utilities.
- Work to create and manage emergency grant and disaster loan programs using state funds, state investment banks, and excise-tax revenues for businesses with fewer than 100 employees.
- Launch public-private partnerships with FinTechs to help automate the process of applying for and dispersing urgently needed small business relief and low-interest working capital loans.
“Timing is critical,” said Sam Taussig, head of global policy at Kabbage. “To help ensure the longevity of most U.S. small businesses during this difficult time, we must unify our efforts, set aside partisanship and take the appropriate and critical actions now to save small businesses.”