Bill Overview
Title: Hardest-Hit Small Business COVID Relief Act of 2022
Description: This bill requires the Small Business Administration to provide grants to small businesses that experienced substantial losses due to the COVID-19 pandemic.
Sponsors: Sen. Cardin, Benjamin L. [D-MD]
Target Audience
Population: Individuals working for small businesses affected by the COVID-19 pandemic
Estimated Size: 15000000
- The bill targets small businesses that have experienced substantial losses.
- Small businesses are defined by various criteria, including revenue and employee size, which can vary by industry.
- Globally, the number of small businesses is very large, but the bill targets those specifically impacted by COVID-19, which is a smaller subset.
- The pandemic affected businesses worldwide, but the scale varied greatly between countries.
- Impacts include both business owners and employees whose jobs are tied to these businesses.
Reasoning
- I considered a range of small business owners and employees, keeping in mind that some would benefit from the policy, while others might not be impacted at all.
- The range of industries affected is broad but includes especially hard-hit sectors like hospitality, retail, etc.
- I included different perspectives such as small business owners and former employees now unemployed or working reduced hours.
- People in larger businesses or businesses not affected by COVID-19 were considered to have no impact.
Simulated Interviews
Restaurant Owner (New York City, NY)
Age: 45 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- This grant could be a lifeline for my restaurant.
- I'm hopeful but worried about the competition for funding.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 7 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 3 |
Freelance Graphic Designer (Los Angeles, CA)
Age: 37 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 12/20
Statement of Opinion:
- It could increase my clients’ ability to hire freelancers like me.
- I hope this boosts the local economy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Owner of a Bookstore (Austin, TX)
Age: 52 | Gender: female
Wellbeing Before Policy: 3
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- A grant would help me keep the bookstore open longer.
- I'm concerned about accessing these funds efficiently.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 3 |
| Year 2 | 6 | 3 |
| Year 3 | 7 | 4 |
| Year 5 | 6 | 3 |
| Year 10 | 4 | 2 |
| Year 20 | 3 | 2 |
Bar Manager (Chicago, IL)
Age: 29 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 14/20
Statement of Opinion:
- If my employer receives a grant, it might mean more hours for me.
- This policy could provide some job security.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 5 | 4 |
| Year 10 | 5 | 4 |
| Year 20 | 4 | 4 |
Hotel Owner (Miami, FL)
Age: 61 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- A grant means potentially restoring some services and jobs.
- It’s good, but we need long-term solutions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 4 | 3 |
Tech Startup Employee (San Francisco, CA)
Age: 27 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 11/20
Statement of Opinion:
- Policy isn’t targeted at my industry, but could indirectly benefit us.
- It's important that small tech companies aren't ignored.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 5 | 5 |
Boutique Owner (Houston, TX)
Age: 40 | Gender: other
Wellbeing Before Policy: 3
Duration of Impact: 4.0 years
Commonness: 7/20
Statement of Opinion:
- It's do or die – the grant could save my store.
- This is a vital support during a tough time.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 3 |
| Year 2 | 6 | 3 |
| Year 3 | 5 | 2 |
| Year 5 | 4 | 2 |
| Year 10 | 3 | 2 |
| Year 20 | 2 | 1 |
Coffee Shop Barista (Seattle, WA)
Age: 34 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 13/20
Statement of Opinion:
- An indirect benefit could be better job stability at the coffee shop.
- Ideally, it will result in fewer hours being cut.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 4 | 4 |
Gym Owner (Phoenix, AZ)
Age: 50 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 6.0 years
Commonness: 10/20
Statement of Opinion:
- A grant could help cover costs for reopening safely.
- It’s hard to compete without financial support.
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 | 2 |
| Year 20 | 4 | 2 |
Wedding Planner (Boston, MA)
Age: 42 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- A lifeline grant to revive my business would be invaluable.
- I worry if this will be enough for a recovery.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 6 | 4 |
| Year 10 | 5 | 3 |
| Year 20 | 4 | 3 |
Cost Estimates
Year 1: $50000000000 (Low: $40000000000, High: $60000000000)
Year 2: $50000000000 (Low: $40000000000, High: $60000000000)
Year 3: $50000000000 (Low: $40000000000, High: $60000000000)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- Determining eligibility and verifying substantial losses could be administratively challenging and impact the program's efficiency.
- The proper allocation and speed of grant distribution will be crucial to minimize further negative impacts on small businesses.
- The exact number of eligible businesses and average grant size are key factors affecting total costs.