Stimulus Update: Corporate CEOs Push for RESTART Act

Michael Strickland, of Bandit Lites, reports to LSA that a letter, written by former Starbucks chairman and CEO Howard Schultz and signed by more than 100 CEOs from businesses large and small, may help cause a breakthrough in the currently deadlocked Congressional negotiations over the next stimulus bill -- which is desperately needed by workers and businesses in the live events industry.

The letter makes a strong argument for supporting the RESTART Act, authored by Senators Michael Bennet and Todd Young.

"At this moment of crisis," the letter states, "we urge you to transcend partisanship and forge meaningful agreement on an assistance package to help our struggling small businesses and, in turn, tens of millions of Americans. We believe that assistance should embrace the following principles:

"Federally guaranteed loans, at favorable terms, that will enable small businesses to transform and sustain themselves through 2020 and well into 2021. Support must last for longer than just the next two or three months.

"Businesses should have flexibility in how loan funds are used.

"The hardest-hit businesses should be eligible for at least partial loan forgiveness. Any forgiveness should be limited to small and mid-sized firms that have suffered significant revenue declines and are not publicly traded.

"Relief needs to be delivered expeditiously. Building on the existing PPP infrastructure would be one way to quickly stand up a new loan program.

"These funds must flow to all small businesses in need, particularly those run by people of color, who have traditionally had less access to capital. A portion of funds should also be directed toward strengthening community development financial institutions (CDFIs) and minority depository institutions (MDIs).

"Strong bipartisan support for Senator Michael Bennet and Senator Todd Young's RESTART Act -- which embodies all of these principles -- demonstrates recognition of the need for this kind of sustained support. We believe something resembling the RESTART Act must be in this next package."

Those signing the letter include Bernard Acoca, CEO, El Pollo Loco Holdings, Inc.; Ajay Banga, CEO, Mastercard; Bob Chapek, CEO, Walt Disney Organization; Ken Chenault, former chairman and CEO, American Express; Kenneth C. Frazier, chairman and CEO, Merck and Co.; Josh Marcus, CEO, Playbook and NYC Sports; Danny Meyer, CEO Union Square Hospitality Group; Douglas L. Peterson, CEO, S&P Global; Barry S. Sternlicht, chairman and CEO, Starwood Capital Group; Don Thompson, former CEO, McDonald's Group; Sharon Waxman, CEO, The Wrap; Marc Benioff, CEO, Salesforce; David Hoffman, CEO, Dunkin' Brands; Jeff Huber, CEO, Home Instead Inc.; Kevin Johnson, CEO, Starbucks Corp.; Earvin Johnson, CEO, Magic Johnson Enterprises; Brandon Ridenour, CEO, HomeAdvisor, Angie's List; Len Riggio, chairman, Barnes & Noble Inc.; Chuck Robbins, chairman and CEO, Cisco; Ginni Rometty, executive chairman, IBM; Sheryl Sandberg, CEO, Facebook; Jim Sinegal, former CEO, Costco Wholesale Corp.; and Arne M. Sorenson, CEO, Marriott International Inc. Of course, Strickland and Schultz also signed on.

Obviously, this collection of names -- which is only partial -- is certain to get the attention of legislators. Strickland notes, "There is bipartisan support for financial aid for small business, as is evidence by the 72 House members and 45 Senators that have sponsored the RESTART Act. It is rumored that several more legislators are signing on now as co-sponsors."

If you haven't yet written your senators and representatives, do so now. Strickland advises that another call to action will be forthcoming from NAMM, which has spearheaded the lobbying effort for the live events industry in the pandemic. Check back daily on this website for the latest. To see the letter, check out the URL below.