Blog Post

Why Bounce Back From COVID-19 When We Can Bounce Forward?

Rhett Buttle • July 2, 2020

Getty

With unemployment claims topping 36 million, and both manufacturing and retail sales experiencing steep declines, there’s no doubt that America’s economic recovery faces a long road ahead. Last week, Federal Reserve Chairman Jerome Powell delivered a sobering view of the future, noting that “the loss of thousands of small- and medium-sized businesses across the country would destroy the life’s work and family legacy of many business and community leaders and limit the strength of the recovery when it comes.” 

The COVID-19 crisis has made clear the central role small businesses play in our daily lives and the extent to which our nation’s economic well-being relies on their financial health. Small businesses are found in every American community. They create jobs and wealth, they enliven our towns, they invigorate our local economies— and poll after poll shows that small business owners are among the most trusted groups in the country. One hundred million people—representing the broad and diverse faces of America—are either small business owners or work for a small business. 

Indeed, people of color own more than 11 million businesses, collectively generating more than $1.8 trillion in annual sales. Women-owned businesses generate $1.9 trillion in revenue and are also steady job creators—in the last five years, their total employment rose 8% versus less than 2% for businesses overall. Business ownership is also a proven path to household wealth creation and spending power, which are critical for economic growth. On average, business-owning households earn more than twice the wealth of their wage-earning peers, and this impact is even more pronounced for business owners of color. 

As we think about the post-COVID-19 future, we must take advantage of that influence, broad reach and deep community impact. The best way to achieve a recovery for all is to put small businesses and their job-creating, wealth-building power at the center of our recovery efforts. With the right tools, small businesses can help us all rebuild.

But to do that, we must act swiftly. Small businesses are facing an existential crisis and the federal government’s emergency response has been poorly administered. Data released by the U.S. Census Bureau last week showed that 74% of small businesses surveyed have had revenue declines and 41% only have enough cash on hand to maintain business operations for the next month or less.

Tight margins are typical for small businesses, with or without the current crisis. Most don’t have significant cash reserves on hand, meaning even minor disruptions to revenue can force them to shutter. In the face of COVID-19—as big a disruption as most small businesses have experienced—Congress created the Paycheck Protection Program (PPP). But while 75% of small businesses surveyed by the Census Bureau requested assistance through the PPP, only 38% have received it. 

Although the PPP loans were designed to help small businesses, the program hasn't worked as intended. The implementation, particularly in the first round, has skewed toward preferred or established customers of big banks. This leaves out many small businesses that aren’t among traditional lenders’ preferred customer base because their financing needs are considered too small or their businesses too risky. 

This gap is more acute in low-income communities and communities of color. Although this is where 43% of small businesses are found, historically they are underserved by big banks. An Inspector General report recently found that the SBA did not direct private lenders to prioritize minority- and female-owned businesses as Congress intended, and a poll released this week by advocacy organizations Color of Change and Unidos US found just 12% of black and Latino small business owners who applied for federal aid received what they had asked for. Forty-one percent said they were denied assistance entirely. Even more concerning, nearly half said they may have to close their doors for good in the next six months. 

Even with the best of intentions, this relief package is amounting to a new form of redlining—further widening an already-vast racial wealth gap. After the 2008 housing market crash, it took the nation’s most prosperous zip codes less than five years to replace the jobs lost during the Great Recession. And yet, more than 10 years later, the most distressed communities have yet to recover. 

We cannot let history repeat itself—and everyone, from government to business to the philanthropic and financial sectors, has a key role to play. Providing small businesses with the support they need to keep workers on the payroll and adapt their revenue streams will require significant investment. But ultimately, that investment will drive our economic recovery. By bolstering small businesses—particularly those that are traditionally underserved—we can speed our post-pandemic comeback and ensure it’s more equitable than what came before.

If COVID-19 is an unprecedented challenge, it also presents us with an unprecedented opportunity. The opportunity to rethink the rules that govern our economy and leave so many without a safety net in times of crisis. The opportunity to not just bounce back from this crisis—but bounce forward with small business front and center. 

This piece originally appeared in Forbes on May 21, 2020. You can view it online here.

Rhett Buttle is the founder of Public Private Strategies, Executive Director of the Small Business Roundtable, Founder of the NextGen Chamber of Commerce, a Senior Fellow at The Aspen Institute, and a contributor for Forbes.

WANTING MORE NEWS? SIGNUP TODAY

Contact Us

December 13, 2024
Rhett Buttle, Founder and CEO of Public Private Strategies, joined Fox Live Now to talk about the state of the economy and the outlook for 2024. Watch the full interview here or below.
October 7, 2024
*This article was written by Scripps News Staff. President Joe Biden announced that the government will cover 100% of Hurricane Helene cleanup costs for the next several months to pay for the urgent work to clear the mud, remove downed trees and provide temporary housing. The federal support comes as residents in multiple Southeastern states are still struggling to return to normal following last week’s storm that killed over 200 people. Katie Vlietstra Wonnenberg, a small business advocate and political strategist, said it is going to take a significant amount of time to finish the cleanup, no matter how hard the federal government works. Read the entire piece on Scripps News.
October 1, 2024
WASHINGTON, D.C. – This month marks the anniversary of two pivotal pieces of legislation that are helping fuel a small business boom, the CHIPS & Science Act and the Inflation Reduction Act. Over the past four years, there has been a historic growth of American entrepreneurship across the country, with over 18 million new business applications filed, each one an act of hope and optimism in our economic future. This small business boom is fueled by investments like the Inflation Reduction Act and the CHIPS & Science Act. Rhett Buttle, Founder and CEO of Public Private Strategies, released the following statement: “As we mark the two-year anniversaries of the CHIPS & Science Act and the Inflation Reduction Act, the positive impact across the business landscape, and particularly for entrepreneurs, is unmistakable. The CHIPS & Science Act is fueling entrepreneurship opportunities by dedicating over $50 million to help develop new ideas and technologies to strengthen domestic semiconductor production and supply chain. “The Inflation Reduction Act has helped lower costs for workers and consumers, driving up demand for small businesses across the country. The healthcare provisions of the Inflation Reduction Act alone are saving millions Americans an average of $800 per year on health insurance premiums. These investments have helped fuel America’s small business boom, including a record 18 million new small business applications filed over the past four years. “We have more work to do to address the issues that business owners have consistently said are their top priorities, from lowering health care and prescription drug costs to expanding and streamlining contracting opportunities for small employers to strengthening and protecting American democracy . We remained committed to working with business leaders to address these challenges and ensure these investments are implemented effectively to grow economies and support communities all across the country.” ### About Rhett Buttle Founder & CEO, Public Private Strategies President, Public Private Strategies Institute Senior Fellow, The Aspen Institute Rhett Buttle is an entrepreneur, advocate, and one of the most trusted leaders at the intersection of business and policy in Washington, DC. He has worked for President Biden, Vice President Harris, President Barack Obama, Secretary of State Hillary Clinton, and Governor Arnold Schwarzenegger in government and campaign roles. Rhett is the founder of Public Private Strategies (PPS) and President of the Public Private Strategies Institute (PPSI), which works to bring together the public and private sectors to build coalitions, activate campaigns, and create strategic partnerships to drive policy and market outcomes. In these roles, he advises leading policy makers, foundations, nonprofits, and corporations. In addition to PPS and PPSI, he has helped found the Small Business Roundtable, Small Business for America’s Future, and the Next Gen Chamber of Commerce. He is also a Senior Fellow at the Aspen Institute and a regular contributor to Forbes, where he writes on the intersection of business, policy, and politics. Rhett has also been featured in The New York Times, CNN, The Wall Street Journal, and several other business publications. About Public Private Strategies Public Private Strategies (PPS) creates opportunities where the public and private sectors meet. We bring together diverse allies including foundations, associations, corporations, small businesses, and entrepreneurs to solve pressing societal challenges. By harnessing the power of the private sector, we build coalitions, activate campaigns, and create strategic partnerships to drive desired policy and market outcomes. Learn more at www.publicprivatestrategies.com .
August 21, 2024
Rhett Buttle, Founder and CEO of Public Private Strategies, joined LiveNOW Fox to talk about Night 3 of the Democratic National Convention.
August 20, 2024
Rhett Buttle, Founder and CEO of Public Private Strategies, joined LiveNOW Fox to talk about Night 2 of the Democratic National Convention.
August 19, 2024
Rhett Buttle, Founder and CEO of Public Private Strategies, joined Scripps News to discuss Night 1 of the Democratic National Convention.
August 15, 2024
Rhett Buttle, Founder and CEO of Public Private Strategies, joined Scripps News to discuss what a Kamala Harris Presidency could mean for small businesses. Watch the interview below
August 9, 2024
WASHINGTON, D.C. – This month marks the anniversary of two pivotal pieces of legislation that are helping fuel a small business boom, the CHIPS & Science Act and the Inflation Reduction Act. Over the past four years, there has been a historic growth of American entrepreneurship across the country, with over 18 million new business applications filed, each one an act of hope and optimism in our economic future. This small business boom is fueled by investments like the Inflation Reduction Act and the CHIPS & Science Act. Rhett Buttle, Founder and CEO of Public Private Strategies, released the following statement: “As we mark the two-year anniversaries of the CHIPS & Science Act and the Inflation Reduction Act, the positive impact across the business landscape, and particularly for entrepreneurs, is unmistakable. The CHIPS & Science Act is fueling entrepreneurship opportunities by dedicating over $50 million to help develop new ideas and technologies to strengthen domestic semiconductor production and supply chain. “The Inflation Reduction Act has helped lower costs for workers and consumers, driving up demand for small businesses across the country. The healthcare provisions of the Inflation Reduction Act alone are saving millions Americans an average of $800 per year on health insurance premiums. These investments have helped fuel America’s small business boom, including a record 18 million new small business applications filed over the past four years. “We have more work to do to address the issues that business owners have consistently said are their top priorities, from lowering health care and prescription drug costs to expanding and streamlining contracting opportunities for small employers to strengthening and protecting American democracy . We remained committed to working with business leaders to address these challenges and ensure these investments are implemented effectively to grow economies and support communities all across the country.” ### About Rhett Buttle Founder & CEO, Public Private Strategies President, Public Private Strategies Institute Senior Fellow, The Aspen Institute Rhett Buttle is an entrepreneur, advocate, and one of the most trusted leaders at the intersection of business and policy in Washington, DC. He has worked for President Biden, Vice President Harris, President Barack Obama, Secretary of State Hillary Clinton, and Governor Arnold Schwarzenegger in government and campaign roles. Rhett is the founder of Public Private Strategies (PPS) and President of the Public Private Strategies Institute (PPSI), which works to bring together the public and private sectors to build coalitions, activate campaigns, and create strategic partnerships to drive policy and market outcomes. In these roles, he advises leading policy makers, foundations, nonprofits, and corporations. In addition to PPS and PPSI, he has helped found the Small Business Roundtable, Small Business for America’s Future, and the Next Gen Chamber of Commerce. He is also a Senior Fellow at the Aspen Institute and a regular contributor to Forbes, where he writes on the intersection of business, policy, and politics. Rhett has also been featured in The New York Times, CNN, The Wall Street Journal, and several other business publications. About Public Private Strategies Public Private Strategies (PPS) creates opportunities where the public and private sectors meet. We bring together diverse allies including foundations, associations, corporations, small businesses, and entrepreneurs to solve pressing societal challenges. By harnessing the power of the private sector, we build coalitions, activate campaigns, and create strategic partnerships to drive desired policy and market outcomes. Learn more at www.publicprivatestrategies.com .
July 21, 2024
WASHINGTON, D.C. – Today, President Joe Biden announced his decision to withdraw from the presidential race. Rhett Buttle, National Business Advisor to Biden for President in 2020, CEO of Public Private Strategies & Co-Founder of the Business & Democracy Initiative , released the following statement: “President Joe Biden showed us what selfless leadership in support of democracy looks like. “Through his work with policymakers across the aisle, President Biden and Vice President Harris led the country back from the brink during a pandemic and delivered bipartisan historic investments that will continue to ripple across our economy for generations, fueling strong job growth. The American Rescue Plan, Bipartisan Infrastructure Law, CHIPS & Science Act, and Inflation Reduction Act are some of the most significant economic achievements in modern American history. “This has led to record numbers of new business starts—more than 17.2 million—each one an act of hope and optimism for our future. We look forward to working with the Biden-Harris Administration over the next few months to continue strengthening our economy in support of businesses and workers all across the country.” ### About Rhett Buttle, Founder, Public Private Strategies and President, Public Private Strategies Institute Rhett Buttle is an entrepreneur, advocate, and one of the most trusted leaders at the intersection of business and policy in Washington, DC. Most recently, Rhett served as National Business Advisor to President Joe Biden’s 2020 campaign. He has worked for President Barack Obama, Secretary of State Hillary Clinton, and Governor Arnold Schwarzenegger. Rhett is the founder of Public Private Strategies (PPS) and President of the Public Private Strategies Institute (PPSI), which works to bring together the public and private sectors to build coalitions, activate campaigns, and create strategic partnerships to drive policy and market outcomes. In these roles, he advises leading policymakers, foundations, nonprofits, and corporations. About Public Private Strategies Public Private Strategies (PPS) creates opportunities where the public and private sectors meet. We bring together diverse allies including foundations, associations, corporations, small businesses, and entrepreneurs to solve pressing societal challenges. By harnessing the power of the private sector, we build coalitions, activate campaigns, and create strategic partnerships to drive desired policy and market outcomes. Learn more at www.publicprivatestrategies.com . As the United States marks the 14th anniversary of the AffordableCare Act (ACA), more Americans now have health care coverage than ever before. Since its enactment in 2010, the ACA has been a vital tool for Main Street, providing access to affordable healthcare options and fostering a healthier, more productive workforce.
April 29, 2024
WASHINGTON, D.C. – Today, the Bureau of Labor Statistics released its March jobs report, showing the US economy added 303,000 jobs in March while the unemployment rate fell to 3.8%. CNN characterized US job growth in March as “whopping,” with gains far outpacing economists' expectations. In response to the strong jobs report, Rhett Buttle, Founder of Public Private Strategies, released the following statement: “The labor market continues to exceed economists’ expectations, with over 300,000 jobs added in March – 50% more than economists anticipated. Bipartisan investments like the Bipartisan Infrastructure Law, CHIPS & Science Act, and Inflation Reduction Act are fueling broad-based economic growth that is strengthening the labor market, increasing consumer confidence , and leading to over 16 million new small business applications in the past three years – the most ever in that period and a reflection of deep optimism among American entrepreneurs about our economic future.” “Lawmakers must continue to double down on America’s economic momentum, and that starts with addressing the issues that business owners say are their top priorities, from lowering health care and prescription drug costs to strengthening and protecting American democracy .” ### About Rhett Buttle, Founder, Public Private Strategies and President, Public Private Strategies Institute Rhett Buttle is an entrepreneur, advocate, and one of the most trusted leaders at the intersection of business and policy in Washington, DC. Most recently, Rhett served as National Business Advisor to President Joe Biden’s 2020 campaign. He has worked for President Barack Obama, Secretary of State Hillary Clinton, and Governor Arnold Schwarzenegger. Rhett is the founder of Public Private Strategies (PPS) and President of the Public Private Strategies Institute (PPSI), which works to bring together the public and private sectors to build coalitions, activate campaigns, and create strategic partnerships to drive policy and market outcomes. In these roles, he advises leading policymakers, foundations, nonprofits, and corporations. About Public Private Strategies Public Private Strategies (PPS) creates opportunities where the public and private sectors meet. We bring together diverse allies including foundations, associations, corporations, small businesses, and entrepreneurs to solve pressing societal challenges. By harnessing the power of the private sector, we build coalitions, activate campaigns, and create strategic partnerships to drive desired policy and market outcomes. Learn more at www.publicprivatestrategies.com . As the United States marks the 14th anniversary of the AffordableCare Act (ACA), more Americans now have health care coverage than ever before. Since its enactment in 2010, the ACA has been a vital tool for Main Street, providing access to affordable healthcare options and fostering a healthier, more productive workforce.
More Posts
Share by: