Bill Overview
Title: Small Business COVID Relief Act of 2022
Description: This bill provides support for restaurants and other businesses impacted by the COVID-19 pandemic. Specifically, the bill provides additional funding for the Small Business Administration (SBA) to provide grants to support the ongoing operations of eligible restaurants and similar establishments. The SBA must report weekly and biweekly information about grant applications, awards, and denials. Additionally, the bill funds grants to support other eligible businesses impacted by the pandemic, including gyms and fitness centers, minor league sports teams, businesses located near land ports of entry, businesses that provide and support live events, and businesses located in certain U.S. exclaves with limited accessibility. A business may receive a grant under only one program. The bill also establishes procedures for the SBA to implement and provide administrative support for these grant programs. The SBA must institute an oversight and audit plan to review the use of grants under these programs. Further, the bill provides additional funding for grants to support eligible transportation service providers. Finally, the bill designates the funding as emergency spending, which is exempt from discretionary spending limits.
Sponsors: Sen. Cardin, Benjamin L. [D-MD]
Target Audience
Population: People employed by or dependent on small businesses impacted by COVID-19 restrictions, such as restaurants, gyms, and entertainment venues
Estimated Size: 70000000
- The legislation aims to support businesses heavily impacted by the COVID-19 pandemic, which includes those in the restaurant industry, gyms, fitness centers, minor league sports, live events, and businesses near entry points.
- The global reach of the COVID-19 pandemic means businesses worldwide have been impacted, with various countries offering relief through different schemes.
- The sectors specified in the act—restaurants, gyms, fitness centers, sports teams, live events, transportation services, and more—have experienced substantial decreases in revenue due to pandemic-related restrictions and consumer behavior shifts.
- The U.S. alone has millions of businesses in these sectors, but globally the numbers are much larger, especially considering local variants of businesses like restaurants and gyms.
- While the exact number can vary, millions of establishments globally can potentially benefit from such relief actions, though not all will have the same structure of support as the U.S.
Reasoning
- We need to simulate individuals from different demographics affected by the policy, such as employees or owners of restaurants, gyms, and businesses involved in live events. These demographics represent some of the hardest-hit industries during the COVID-19 pandemic and are directly targeted by the policy.
- The population should include individuals who are highly impacted by this policy, as well as those who might benefit indirectly, or those who might not see tangible impacts at all, to provide a well-rounded view.
- We should consider a range of ages, locations, and roles within these industries to ensure diverse perspectives.
- The policy aims for a broad, national impact by focusing on sectors like transportation service and minor league sports teams, so it's plausible to include people from various geographic areas of the U.S.
Simulated Interviews
Restaurant Owner (New York, NY)
Age: 45 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 2/20
Statement of Opinion:
- This relief is much needed. We've been struggling to keep up with rent and salaries.
- The grant could be the difference between closing down two of my locations or keeping them open.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 7 | 3 |
| Year 3 | 8 | 2 |
| Year 5 | 7 | 2 |
| Year 10 | 6 | 3 |
| Year 20 | 5 | 3 |
Fitness Instructor (Austin, TX)
Age: 32 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 3/20
Statement of Opinion:
- The relief might mean getting back to pre-pandemic class sizes and schedules.
- Our community gym is important for local health and wellness; any help is crucial.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 6 | 4 |
| Year 5 | 5 | 3 |
| Year 10 | 5 | 3 |
| Year 20 | 4 | 3 |
Event Planner (Seattle, WA)
Age: 28 | Gender: other
Wellbeing Before Policy: 3
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- With venues receiving grants, we can start booking more events, which means work for me.
- It's not just about money, it's about getting back to doing what I love.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 3 |
| Year 2 | 7 | 3 |
| Year 3 | 7 | 3 |
| Year 5 | 6 | 3 |
| Year 10 | 5 | 3 |
| Year 20 | 4 | 3 |
Minor League Sports Team Manager (Detroit, MI)
Age: 50 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 4.0 years
Commonness: 3/20
Statement of Opinion:
- This support could help us cover operational costs and maybe bring back some staff.
- Sports bring joy and community spirit; it's essential to restore what we lost.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 3 |
| Year 3 | 6 | 3 |
| Year 5 | 5 | 2 |
| Year 10 | 4 | 2 |
| Year 20 | 3 | 2 |
Gym Owner (San Diego, CA)
Age: 35 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 3/20
Statement of Opinion:
- Every little bit helps. Some members are slowly coming back, but this grant will help us upgrade facilities and market better.
- It's a lifeline while rebuilding what we lost.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 6 | 3 |
| Year 10 | 5 | 3 |
| Year 20 | 4 | 2 |
Bartender (El Paso, TX)
Age: 22 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 4/20
Statement of Opinion:
- The grant to our bar could mean more shifts and better tips.
- It's not a permanent fix, but it helps me stay afloat.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 4 |
| Year 3 | 5 | 4 |
| Year 5 | 5 | 4 |
| Year 10 | 4 | 3 |
| Year 20 | 4 | 3 |
Transportation Service Provider (Honolulu, HI)
Age: 65 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 4.0 years
Commonness: 2/20
Statement of Opinion:
- As tourism picks up, the grant can help us maintain our vehicles and staff.
- It's a relief to have some support; the pandemic hit us hard.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 6 | 4 |
| Year 5 | 5 | 3 |
| Year 10 | 4 | 3 |
| Year 20 | 4 | 2 |
Musician (Buffalo, NY)
Age: 41 | Gender: other
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- The venues I play at could stay open with this grant, meaning more gigs for me.
- It's essential we keep the arts alive in our community.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 3 |
| Year 3 | 7 | 3 |
| Year 5 | 6 | 3 |
| Year 10 | 5 | 3 |
| Year 20 | 4 | 3 |
Server at a Restaurant (Chicago, IL)
Age: 29 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 3.0 years
Commonness: 5/20
Statement of Opinion:
- I'm worried about permanent closure, so the grant offers hope.
- I just want to return to a steady paycheck.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 3 |
| Year 5 | 5 | 3 |
| Year 10 | 5 | 2 |
| Year 20 | 4 | 2 |
Owner of Sports Apparel Shop (Phoenix, AZ)
Age: 38 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 4/20
Statement of Opinion:
- Grants can spur economic activity in our area, which helps my sales.
- It's a step toward stabilizing after a rough couple of years.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 4 |
| Year 3 | 5 | 4 |
| Year 5 | 4 | 3 |
| Year 10 | 3 | 3 |
| Year 20 | 3 | 2 |
Cost Estimates
Year 1: $4000000000 (Low: $3500000000, High: $4500000000)
Year 2: $3000000000 (Low: $2500000000, High: $3500000000)
Year 3: $2000000000 (Low: $1500000000, High: $2500000000)
Year 5: $1000000000 (Low: $500000000, High: $1500000000)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The emergency spending designation allows expedited and flexible funding processes.
- The relief is crucial for preventing permanent business closures in critical sectors, which could have wider economic repercussions.