Johnson said the NRA is especially pleased to see the Administration moving forward to purchase securities backed by SBA loans to unfreeze the credit market for small businesses, issue guidance on the expanded net operating loss carry-back period for small businesses, and reduce the cost of lending for borrowers and lenders. “As an industry that is comprised mainly of small, independent businesses, restaurants have historically been among the largest users of SBA programs. More than 98 percent of restaurant firms are classified as a small business under the SBA definition, and it is for this reason that expanding access to SBA-guaranteed loans is of particular importance for the restaurant industry.
“Expanding the flow of capital to the restaurant industry is a critical component of job creation and preservation. Like small-business owners in other industries, many restaurant operators are struggling through their most challenging environment in decades, as households continue to hold back on spending. However, the restaurant industry differs from many other industries in that it is extremely labor-intensive, which means a larger number of employees are needed in restaurants to generate a certain amount a sales. Expanding access to capital will help restaurant operators meet their day-to-day payroll needs, thereby preserving thousands of jobs that would otherwise be lost if restaurants were forced to downsize operations or close their doors completely during the current recession.”