In a letter sent this week, a coalition of 20 small business organizations urged Congress to follow through on its commitment to American small business owners by including the last quarter of the Employee Retention Tax Credit (ERTC) in the $3.5 trillion budget reconciliation bill.
As passed by the Senate, the Infrastructure Investment and Jobs Act terminates the ERTC three months early making wages paid after Sep. 30 ineligible for the credit. With the rise of the COVID-19 delta variant, many small businesses are depending on these previously promised funds for survival and their employees’ jobs are at-risk should Congress ignore requests for immediate action.
“The need for cash is readily apparent in our industries as more and more businesses continue to struggle. In fact, according to a recent Goldman Sachs survey of more than 1,100 small businesses, 44% of U.S. small businesses have less than three months of cash reserves, leaving them vulnerable to prolonged shutdowns due to the Delta variant,” the letter stated.
“While the infrastructure bill is a much-needed investment in our nation, forcing small businesses to offset cost should not be an option,” said Mike Goscinski, senior director of external affairs of the National Automatic Merchandising Association and coalition member said.
In addition to NAMA, the diverse coalition spans many industries that would be directly impacted.
It includes the American Rental Association (ARA); the American Society of Travel Advisors (ASTA); the California Automated Vending Council (CAVC); the Drycleaning and Laundry Institute (DLI); Elite Catering and Event Professionals (ECEP); the Global Association for the Attractions Industry (IAAPA); the International Council of Air Shows (ICAS); the Global Health and Fitness Association (IHRSA); the International Inbound Travel Association (IITA); the Live Events Coalition; the Massachusetts Vending Association; the Mid-America Automatic Merchandising Association (MAMA); the National Tour Association (NTA); the New York State Automatic Vending Association (NYSAVA); the Outdoor Amusement Business Association (OABA); The Payroll Group (TPG); the Student & Youth Travel Association (SYTA); the Texas Merchandising Vending Association (TMVA); Tri State; and the U.S. Tour Operators Association (USTOA).
Organizations interested in joining the coalition can contact Robert Jackson, manager of federal and state affairs, NAMA. Small business owners who will be affected can offer additional support by submitting letters to their representatives through NAMA’s Action Center.