Guest Commentary

By Rep. Ben Cline

Executive Summary:

6th District Republican U.S. Congressman Ben Cline says Congress must do even more to help small businesses recover.

Putting partisanship aside and work to find realistic solutions

The past year and a half has been difficult for all Americans as we fight the COVID-19 pandemic. From being asked not to gather in large groups, eat out at restaurants, or attend entertainment venues, folks have made great sacrifices to combat COVID-19. I am also keenly aware of the economic consequences these sacrifices had on our communities.

In an effort to help folks through the pandemic, Congress took several immediate steps to provide aid to those in need. Chief among these actions was the passage of the CARES Act, which I was proud to support. This legislation provided aid to individuals through Emergency Relief Checks and also aid to businesses through forgivable loan programs such as the Paycheck Protection Program. In addition, the CARES Act provided funding to hospitals, community health centers, and other providers.

While many individuals have begun to recover from the economic side-effects of the government-mandated shutdowns, unfortunately, the business community continues to struggle for a variety of reasons. Congress must do more to help small businesses in a way that does not hinder their growth as we re-open our economy.

For example, in 2019, I introduced and had signed into law the Small Business Reorganization Act, which simplified the process for entrepreneurs to use bankruptcy as a means of reorganization instead of closing. Under this bill, businesses with less than $2.7 million of debt could file for bankruptcy in a timelier and more cost-effective manner. While in bankruptcy reorganization, a small business can negotiate with creditors while keeping the doors open, employees on payroll, and suppliers and vendors paid.

In 2020, a provision in the CARES Act raised the $2.7 million threshold in my initial bill to $7.5 million. While this provision was set to expire on March 27, 2021, Judiciary Chairman Nadler and I introduced the COVID-19 Bankruptcy Relief Extension Act, which extended this provision, and thus the $7.5 million threshold, for an additional year. I was pleased that on March 27, President Biden signed this bill into law, meaning significantly more businesses struggling from the pandemic can take advantage of this bill and utilize this valuable lifeline.

Having this legislation signed into law is a great example of how both parties can put partisanship aside and work to find realistic solutions to benefit the American people. Since being sworn in, one of my top priorities has been working to promote policies that support the business community. Whether it’s cutting bureaucratic red tape and regulations, easing the tax burden for small business owners, or advocating for trade deals that allow American industry to thrive, I will continue to pursue legislative initiatives that will help entrepreneurs flourish and ensure the long-term success of the U.S. economy.

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