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Fireside Chat, Interview

The Power of Advocacy: US Senators

  • The Paycheck Protection Program (PPP) passed the U.S. Senate 98–0 and the House 96–0, attributed to small business owners effectively communicating the urgency of their situation to Congress.

    • The program was designed as a bipartisan lifeline to help small businesses retain workers without incurring additional debt.
    • Senator Cardin emphasized that the legislation's success relied on effective lobbying to demonstrate that saving businesses also preserves jobs and taxpayer dollars by reducing unemployment insurance costs.
  • Advocacy effectiveness was defined by Senators Cardin, Hassan, and Daines through the following shared principles:

    • Outcome Focus: Senator Daines noted that advocacy must translate policy into tangible results, treating initial legislation like a software launch that requires subsequent "bug fixes" and administrative adjustments.
    • Storytelling and Groundwork: Senator Hassan advised advocates to tell personal stories to illustrate ripple effects on communities while engaging stakeholders early to ensure solutions are sustainable.
    • Bipartisan Collaboration: Senator Cardin described the legislative process as a "common thread" approach where diverse views on business size and nonprofit eligibility were resolved through listening to find shared goals.
  • Senator Daines confirmed support for flexibility in the PPP program based on real-time feedback from small businesses.

    • The legislation was adjusted to extend the payroll coverage period from 8 weeks to 24 weeks due to slower business reopening timelines.
    • The allowable non-payroll expense limit for forgiveness was reduced from 75% to 60% to provide greater flexibility for businesses.
    • Senators Daines and King (Ranking Member on Small Business Committee) co-sponsored the "Flexibility Act" to address these specific administrative needs.
  • Small businesses are characterized as critical economic catalysts and primary sources of ground-level intelligence.

    • In New Hampshire, 99% of businesses are small businesses, employing approximately half the state's workforce.
    • Small business owners demonstrated rapid adaptability during the pandemic, such as manufacturers pivoting production to create personal protective equipment (PPE).
    • Senators noted that feedback from these owners was essential for identifying "rough edges" in the PPP that government data alone could not reveal.
  • Leadership advice for small business owners facing crisis conditions includes:

    • Prioritizing transparency by clearly communicating challenges and decision-making logic to employees, customers, and the community.
    • Engaging in creative problem-solving, such as proposing part-time work arrangements paired with partial unemployment benefits.
    • Accepting that difficult decisions during a crisis may invite criticism but should be guided by the well-being of the community and workforce.
  • Senators acknowledged the dynamic nature of the economic situation, noting that conditions could change significantly within four to eight weeks.

    • Ongoing dialogue between businesses and legislators is required to continuously adapt policies to evolving realities.
    • The bipartisan unity seen during the initial PPP passage was driven by the historical necessity to move fast during a national emergency.